Giving Compass' Take:

• Governing magazine discusses the recent Janus ruling from the Supreme Court, how it will affect union membership across the country and whether that potential drop will mean a reduction in labor costs for states. The main takeaway: As we've seen with the teacher strikes, labor movements are still strong; weaker laws won't necessarily slow them down.

• As for how this affects the nonprofit sector: Putting pressure on companies to give people living wages (to reduce homelessness and poverty) is as essential as ever.

• Here's why those teacher strikes are likely to continue post-Janus ruling and what it means for the future.

The U.S. Supreme Court dealt a potentially crippling blow recently to public-sector labor unions when it eliminated the requirement for non-union employees to pay “agency fees” to contribute to the cost of collective bargaining and related activities.

The decision is expected to cause a drop in union membership, which has fallen in nearly every state over the past decade, and a subsequent decline in unions' revenue and power. A big question for governments is whether a weakening of labor unions will translate to lower labor costs in the 22 states that have not already adopted right-to-work laws, which let workers opt out of union fees.

Two key areas to watch, says Moody’s Investors Service Vice President Nick Samuels, are wage and benefits negotiations in the coming years. But any fiscal impact, he cautions, “is likely to happen over time.”

That’s not necessarily so, says Fitch Ratings analyst Laura Porter. Teacher strikes across several right-to-work states this past spring, she says, indicate that weak labor laws don’t necessarily halt labor movements, and even without pressure from unions, workers have the power to demand better wages and benefits. “It illustrates that once you’re in that situation [where unions are comparatively weak], you can’t do whatever you want,” she says. “There are practical limits — market pressures to be competitive are still at work."

Read the full article about the correlation between weaker unions and state budgets by Liz Farmer at Governing magazine.