From my perspective as a Federal government employee and senior manager, local unions drive up the cost of doing day-to-day business. They bicker and put up a fuss on piddly crap as simple as moving a coffee pot from one corner of the room to another. I'm not kidding. They claim moving the coffee pot is a change in working conditions. This is how good government unions have it (at least where I work). I'm sure that when working conditions were originally addressed in the collective bargaining agreement it meant taking an employee from an office envioronment and putting him into a warehouse or something like that.
Also from what I've observed, productivity from our union members is just plain minimal at best. Their pay compared with outputs is far greater than just about anything you will see in the private sector. This cuts into our bottom line and drives up costs.
I'm not really in favor of pushing out unions from our government, but I believe we should force them into living up to both sides of the collective bargaining agreement and not wasting time and money arguing things that shouldn't be argued.
Anectdotally, I believe the problems that I observe on a daily basis may be representative of many other Federal, state, and city unions. Maybe I'm wrong, but in the end, I am convinced unions are a significant part of the waste and higher costs passed onto tax payers.
Having said this, I completely agree that the level of services provided by our government is the chief reason for most of our governmental funding challenges.