From:
Susan Kniep, President
The Federation of
Connecticut Taxpayer Organizations, Inc.
Website: ctact.org
Email: FCTOPresident@ctact.org
860-528-0323
February 18, 2004
BINDING ARBITRATION
On September 20, 2003, the following
letter was mailed to the CEOs of the 169 Towns and Cities throughout Connecticut on FCTO Letterhead,
signed by its President, Susan Kniep, who is also the
former Mayor of East Hartford….
As the former Mayor of the Town of East Hartford, I know the
impact Binding Arbitration can have on municipal budgets. I am, therefore, writing to ask if you would
consider joining other towns in proposing the following Resolution to your
local legislative body to encourage stimulating the debate on Binding
Arbitration. A Resolution has already
been passed by several towns (Tolland, East Hartford, Wethersfield, North Stonington, Watertown, New Britain, Brookfield, Berlin, and East Hampton) and forwarded
to their legislative leaders at the State Capital.
I ask that you reflect upon the recent lawsuit initiated by
a union representing public employees.
The union is suing more than 200 cities, towns, school districts and
public agencies for a share of the stock distribution from Anthem blue
Cross. Connecticut taxpayers pay
hundreds of millions of dollars for State employee and State retiree
healthcare. In some municipalities,
local taxpayers are picking up 100%, 95% or 90% of town employee healthcare
costs. Yet, a lucrative, nearly free,
taxpayer financed healthcare system is not enough for the public sector
unions. They want more and now they are
going to court to get it. Revenue
generated from the sale of Anthem stock should be available to municipalities
to offset operating costs, to include the rising costs of healthcare for
employees. It should not be used as an
additional windfall to union members who have the best healthcare the
taxpayers’ money can buy. This latest
action by the unions should serve as a catalyst for change to State Binding
Arbitration Laws.
The Federation of Connecticut Taxpayer Organizations, Inc.
(FCTO) is a nonprofit organization which seeks to educate taxpayers and elected
officials on issues affecting taxation, government policies and practices, and
encourages voter participation. Through
our research, we have determined that approximately 75% to 90% of local,
municipal budgets constitute personnel related expenses. This includes salaries, healthcare, pensions,
workers compensation, etc. We have also
learned that Towns are either settling union contracts under the threat of Binding Arbitration, or
union contracts are being sent to arbitration, and are being finalized by
independent arbitrations with no relationship to the municipality they are
financially impacting.
Due to the aforementioned, FCTO believes that each of the
169 municipalities in the State of Connecticut should be
encouraging their State representations to at least open the debate on Binding
Arbitration. In so doing, local
officials, state officials and taxpayers can become better educated on the
issue, and can collectively seek a solution to a system which deprives
taxpayers and local elected officials of the necessary authority to manage
their municipal budgets and personnel costs.
We offer the following Resolution for your
consideration. Of course, you may wish
to offer your own verbiage.
Also, as we continued to research and educate the public, I
would appreciate learning from you your town’s current budget, the percentage
of your personnel related expenses to your budget, and in light of the current
lawsuit, what the taxpayers in your town are paying for healthcare costs for
town employees versus what the employees are paying. As the data is collected, we will be posting
the information our website, along with the status of the Resolution in each
town. We believe this information will,
in turn, be beneficial not only to taxpayers but to municipal leaders such as
yourself as you compare the percentage of your personnel related expenses to
other municipalities.
I look forward to hearing from you. If you have any questions, please contact me
at 860-528-0323 or by return email to fctopresident@ctact.org.
Sincerely,
Susan G. Kniep
President
Please Complete and Return the following either by
Email: fctopresident@ctact.org
Mail: 50 Olde Roberts Street, East Hartford, CT 06108
Town:
_________________________________________________________________________
Contact: ___________________________________ Tel Number_________________________
Town Budget: ______________________________ Board
of Ed Budget__________________
Percentage of Personnel Costs to Total Budget-Town &
Board of Ed: (Salaries, Overtime,
Healthcare, Pension, Life Ins., Workers Comp, Retirement Payouts)
___________________
Healthcare Costs:
Paid by Taxpayer: Town
_____________ Board of
Ed____________
Healthcare Costs:
Paid by Employee: Town
_____________ Board of
Ed____________
Status of Binding Arbitration Resolution:
____________________________________________
RESOLUTION ON BINDING ARBITRATION
WHEREAS, Connecticut Taxpayers
currently pay the highest taxes in the Nation and are burdened with the highest
bonded debt, and
WHEREAS, The State of Connecticut has been plagued
with annual budget deficits, which in turn impact local budgets, and
WHEREAS, the majority of the 169 towns and cities
throughout the State of Connecticut rely upon State
aid to balance their local budgets, and
WHEREAS, a reduction in State municipal aid by the State
legislature has a deleterious affect upon local property taxpayers, and
WHEREAS, on average, seventy (70%) to ninety (90%) of
municipal budgets are dedicated to personnel related expenses, and
WHEREAS, independent arbitrators, with no direct
relationship to municipalities, are now the ultimate decision makers on union
contracts subject to arbitration, and
WHEREAS, municipal union contracts are disproportionate to
the private sector in wages, health and pension benefits, and
WHEREAS, as an example, the majority of healthcare costs of
union members are born by municipal taxpayers, many of whom cannot afford
healthcare or prescription drugs for themselves or their families, and
WHEREAS, several towns and cities are under the threat of
litigation by the unions to take control of the proceeds from the Anthem stock distribution,
and
WHEREAS, the proceeds of the stock distribution should be
utilized to offset the cost of taxpayer financed healthcare, and
WHEREAS, the democratic process is weakened by the present binding
arbitration system which deprives taxpayers and local elected officials of the
necessary authority to manage their municipal budgets and personnel costs,
NOW THEREFORE BE IT RESOLVED that the local Legislative Body of
______________________ (town/city) urges our State Representatives to Open the
Debate on Binding Arbitration, which will in turn serve to educate the public
on the effects of Binding Arbitration, and provide a forum wherein a successful
solution can be reached to allow municipal leaders and taxpayers the ability to
manage their own budgets.