The budget part of the bill, which was severed so they could pass the bill without a smaller number of legislators constituting a quorum, would modify the existing contracts by immediately modifying the pension and benefits contribution schedule. However, the unions had agreed to those modifications and only objected to the collective bargaining provisions, so that may be viewed as a matter of contract negotiation in the same way in which private sector unions have accepted "give backs." The analogy is not entirely accurate, however, because union members must vote to approve contracts whereas here, the legislature (when it votes on the budget piece) will simply impose these changes unilaterally regardless of whether the rank and file of the union membership would agree.
See also this bill in Michigan, which would allow the governor to unilaterally and without due process declare that a city or school district is in a state of “financial emergency” and then appoint a manager who could do everything from firing local elected officials to abrogating contracts to dissolving the town or district entirely.
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