THE IMPACT OF COMPULSORY ARBITRATION ON MUNICIPAL BUDGETS--THE CASE OF OMAHA, NEBRASKA
DONALD E. PURSELL AND WILLIAM D. TORRENCE
DOI: 10.2190/BECD-5U2A-T8EQ-PJCV
Abstract
The Nebraska Commission of Industrial Relations engages in compulsory arbitration to resolve public sector labor management disputes and has the authority to establish wages, conditions of employment, and/or hours of work. The impact of commission awards on local budget priorities and level of services is an important but little understood issue. Elected officials could find their authority and control over municipal finances usurped by an appointed body. An examination of commission awards for employees of the city of Omaha indicates that compulsory arbitration has not interfered with municipal budgeting to the extent that the city has lost control of its budget. Sectors where compulsory arbitration awards were granted during the 1970's had a smaller share of Omaha's budget in 1979 than in 1968. Commission awards undoubtedly made life more complex and uncomfortable for budget managers because awards required unanticipated shifts during a fiscal year. To imply, however, that compulsory arbitration reduced elected and appointed officials ability to guide the destiny of municipal budgets seems inappropriate.
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