Madison, Wisconsin (CNN) -- As the standoff continues in Madison over a budget bill that would increase the costs of benefits to public employees and curb their collective bargaining rights, Republican Gov, Scott Walker blamed unions for squandering state coffers and impeding fiscal reform.
"We're broke," the governor told reporters Monday. "You really can't negotiate when you don't have money to negotiate with."
Unions argue that collective bargaining -- a process of negotiations meant to regulate working conditions -- has served to protect wages and health care, enforce workplace safety and serve as a means to arbitrate employee grievances.
The bill's supporters say union contracts have hamstrung efforts to address the state's swelling deficit. Its opponents say the bill is an assault on workers' rights.
The budget-repair bill, proposed by Walker to address a $137 million shortfall through June 30, would increase contributions of state workers to their pensions and health insurance benefits. It requires collective-bargaining units to conduct annual votes to maintain certification. It also eliminates the right of unions to have dues deducted from worker paychecks.
Walker says the measures are needed to head off a $3.6 billion budget shortfall by 2013 that could result in thousands of layoffs.
He warned that not passing the proposed bill would result in at least 1,500 government employees being laid off in the short term and could result in upwards of 6,000 workers being laid off in the following budget cycle.
"There are some tough decisions that are going to have to be made on the revenue side and the spending side," said Elizabeth McNichol, senior fellow at the Washington-based Center on Budget and Policy Priorities.
Meanwhile, the number of protesters gathering daily in Madison had dwindled by Monday as a winter weather advisory was in effect for much of the state.
