TO GOVERNOR RELL:
A PROPOSAL TO ADDRESS THE ECONOMIC CRISIS
The following letter was directed to Governor Rell on September 16, 2008 by The Federation of Connecticut Taxpayer
Organizations.
The following is the latest in the economic crisis that has
beset our nation.
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September 16, 2008
To: Governor Jodi Rell
State of Connecticut
Office of the Governor
State Capitol
210 Capitol
Avenue
Hartford, Connecticut 06106
Governor.Rell@po.state.ct.us
(860) 566-4840
From: Susan Kniep, President
The Federation of Connecticut Taxpayer Organizations, Inc.
and East Hartford Taxpayers Association
Website: http://ctact.org/
email: fctopresident@ctact.org
841-8032
Dear Governor Rell:
The
economy is in a freefall. The country is
in crisis and some economists predict a recession is imminent.
It is therefore imperative that state elected officials
throughout the country act immediately and responsibly to protect the interests
of their constituents to the best of their ability. During your term in office, you have demonstrated
that you are a leader in this regard.
We live in one of the highest taxed states in the country. Our property taxes are driven by state
mandates such as binding arbitration and prevailing wage laws.
The majority of Connecticut
residents work in the private sector, at will, where there is no job
security. The unemployment rate is at an
all time high. That rate is guaranteed
to climb as more Connecticut
residents lose their jobs. The collapse
of Lehman is just one example. If homeowners
are unable to pay their property taxes, they will lose their homes.
The property taxes of Connecticut
homeowners in the 169 towns in our state are driven by personnel costs which
constitute, on average, approximately 85% of local budgets.
If history repeats itself, very few working in the public
sector in Connecticut
will lose their jobs. In fact, many could
reap the benefits of increased salaries, healthcare and/or pensions in already
approved union contracts.
As such, the Federation of Connecticut Taxpayer Organizations asks that
you consider the following:
- Call for a Special Legislative Session
to address State mandates which directly impact local budgets with a focus
on binding arbitration and prevailing wage laws. Propose legislation which
will:
- Allow towns to suspend Binding
Arbitration for up to three years due to a downturn in the economy.
- Require that local arbitration awards
be ratified by a majority vote of the local legislative body. As in state government, if the awards
are rejected, the process must begin again.
- Prohibit arbitrators from accessing a
town’s undesignated savings account to fund union contracts.
- Impanel a Blue Ribbon Commission to
study municipal union contracts throughout the State of Connecticut to
- Determine the feasibility of
developing a universal pay scale for all municipal and state jobs
- Determine the feasibility of bringing
all union contracts under a state arbitration panel
- Assess salaries with the suggestion
that only one wage increase be allowed and eliminate step increases.
- Determine the effects of overtime pay
being factored into pensions; how many state and/or local employees are
retiring at a pension greater than their base pay?
- Determine the cost and feasibility of
establishing a database where all municipal union contracts are recorded
and can be accessed by the public.
- Impose an immediate pay freeze and
hiring freeze at the state level.
- Determine if some departments and/or
buildings can be reduced to a four day work week, and eliminate the associated
costs of the fifth day, i.e. salaries, utilities, etc.
- Call for concessions from the state
unions. If those concessions are
not given, then begin downsizing.
- Look for pay cuts from some executives
in your administration. Example, a $275,000
salary being paid to UConn’s chief audit and
compliance officer.
- Consider offering early retirement for
some state employees.
- With the understanding that the
government contracts some of its responsibilities to nonprofits, which are
not transparent, we ask that you propose:
- Legislation which would require all
nonprofit companies under contract to the State to be subject to FOI
statutes. This is proposed as we
understand over $1 billion in state funding
- is allocated to nonprofits,
- that their employees
can access the State employees health insurance plans, and
- that the budgets of some nonprofits are
supported primarily by state funding.
- Propose that all nonprofit and
for-profit businesses which rely on 50% or more of public funding to operate
be subject to Freedom of Information laws.
- Discontinue the allocation of millions
of taxpayer dollars to discretionary accounts which benefit you, the
Speaker of the House, and the Senate President.
In conclusion, our country’s
financial system is spiraling out of control due to debacles in the mortgage
and banking industry. Our federal government
is compounding the problem by trying to sustain its collapse by further
indebting the American public by pouring billions and billions of taxpayer
dollars into a sinking hole from which we may not be able to climb out from for
many years to come.
It is, therefore, the responsibility of the States to
sustain themselves by enacting fiscal constraints and policies to protect the
interests of their constituents.
Unless the burden of Binding Arbitration
laws in Connecticut are lifted off the
shoulders of municipal officials, Connecticut
towns could follow a similar path to bankruptcy.
Thank you for your consideration
of the aforementioned. We look forward
to your response.