Note that if you have received more than one copy of this email publication, wish to be removed from FCTO's email list, or add a friend, please notify FCTO at  fctopresident@aol.com .  Thank you.

 

 

BREAKING NEWS……

Blagojevich convicted on corruption charges   Former Illinois Gov. Rod Blagojevich was convicted on 17 of the 20 public corruption charges against him. The jury acquitted him on one count of bribery. FULL STORY

 

Indebted Illinois Stiffs Creditors From Funeral Homes to Xerox

 http://www.bloomberg.com/news/2011-06-24/illinois-stiffs-vendors-from-mortuary-to-ibm-as-4-billion-debt-piles-up.html

 

 

From:  The Federation of Connecticut Taxpayer Organizations
Contact:  Susan Kniep, President
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032

June 27, 2011

 

 

AN OPEN LETTER TO GOVERNOR MALLOY AND

ALL CONNECTICUT STATE LEGISLATORS

 

 

PLEASE EMPANEL A BLUE RIBBON COMMISSION TO ADDRESS COLLECTIVE BARGAINING WITH A FOCUS ON REFORM

 

From The Federation of Connecticut Taxpayer Organizations,

Contact Susan Kniep, fctopresident@aol.com,

http://ctact.org/, 860-841-8032

 

June 26, 2011

 

 

The following was highlighted in a New York Times article on June 25, 2011. 

 

Fred V. Carstensen, a professor of economics at the University of Connecticut, the director of its Connecticut Center for Economic Analysis and a state employee, said workers made a catastrophic mistake, voting down a relatively generous and thoughtful agreement. He said rejection would throw the state into “a double-dip recession” and wreck chances of addressing the state’s long-term fiscal needs.

 

As such we ask that, in addition to implementing the Governor’s state employee layoff plan, you lend your support to Empaneling a Blue Ribbon Commission to address the issue of Collective Bargaining with a focus on Reform.  The Federation would welcome an opportunity to serve on this commission and we suggest that CCM, CBIA, and the Consortium for Fiscal Responsibility be among others invited to participate.  

 

The recent rejection by the State Employee Unions of the proposed concession package offered by Governor Malloy placed a spotlight on the unhealthy control of State Employee Unions over our State, its budget, personnel and finances, as well as the devastating impact it will have on taxpayers throughout our state. 

 

It also put a focus on Connecticut’s Collective Bargaining rules which required the agreement be approved by 14 of the 15 unions in the State Employees Bargaining Agent Coalition. 

 

In addition, although you were elected to manage our State, frequently you are prohibited from doing so due to the terms of union contracts which have either been previously agreed to by both management and labor or which have been imposed by arbiters through Collective Bargaining. 

 

As union contracts are negotiated in secret, voters/taxpayers are frequently removed from the process although you expect us to pay the associated costs through the various forms of taxation you and municipal leaders impose upon us.     

 

And those costs are guaranteed to escalate as property taxes increase if municipal aid to the 169 towns throughout Connecticut is reduced as suggested in Governor Malloy’s “Plan B” which in May was estimated at $482 million in potential cuts. 

 

Further, the proposed termination of 7500 state employees will impact services and the State’s unemployment insurance fund.  In January, 2011 it was reported that “ Connecticut has borrowed $581 million from the federal government's unemployment loan program since the state's unemployment insurance trust fund hit empty in October 2009.”

 

 In 2009, the Hartford Business Journal put a focus on this issue

 

“Connecticut’s unemployment insurance fund has become insolvent, which will force the state to borrow nearly $1 billion over the next two years so jobless residents can continue to collect unemployment checks. The state’s unemployment insurance fund ran out of money Oct. 13, and the state has already borrowed $80 million to make up for the shortfall. By the end of 2009, those loan amounts are expected to increase to $260 million. Through 2012, state officials predict the state may need to borrow up to $900 million.” http://www.hartfordbusiness.com/news11111.html

 

For years, the Federation has called for reforming state laws which give greater control of state and municipal finances and personnel to the unions as opposed to those whom voters elect to office.

 

In a 2004 publication, captioned  FCTO Proposes Changes to State Binding Arbitration Laws Based on Anthem Stock Lawsuit  we proposed eliminating  HealthCare Costs and Issues from Contract Negotiations and Arbitration. 

 

In 2009, the Federation participated in a Press Conference at the Capitol and suggested that BINDING ARBITRATION LAWS COULD BANKRUPT CONNECTICUT  .  Therein we lent our support to Governor Rell’s proposal which in her words asked for the   “Suspension of binding arbitration requirements for two years while we confront our economic troubles…..” Governor Rell’s request was denied by the State legislature. 

 

In 2011, the Federation offered testimony on bills which were not approved but would have constrained costs at the state and within municipalities regarding a freeze on wages and protection of reserve funds. 

 

It is apparent that the Collective Bargaining process has failed our state, its taxpayers and those we elect to office. 

 

It is time for a change.  We ask that you put in motion the process to facilitate that change through a reform of State Collective Bargaining Laws.       

 

******************************

 

John Pelto is to be commended for his excellent article which follows.  Every Connecticut voter and taxpayer should closely monitor this issue.  Any Legislator who does not accept his responsibility and do his job in this budget process should resign!

Malloy to Legislature: Give me the power, go home and I'll take care of everything.    Jonathan Pelto   June 24, 2011 Hartford—The system of checks and balances is one of - if not the - most important element of a true representational  democracy.Malloy's request is not only a bad one - it is a horrific proposal - and every single legislator (Democrat or Republican) should remember their solemn oath to the Constitution and their constituents. Legislators have a job to do and now is the time they must do it. Read complete report at http://www.fairfieldweekly.com/news/blogs/nh-malloy-to-legislature-give-me-the-power-go-home-and-ill-take-care-of-everything-20110624,0,3122437.story

 

 

Another Bailout a Possibility, Bernanke Says  Gamut News June 27, 2011  Although Federal Reserve Chairman Ben Bernanke is predicting an economic rebound, he’s also leaving the door open for another round of stimulus money. He spoke after U.S. central bankers met Wednesday in Washington, saying The Fed would be “prepared to take additional action” including buying up more Treasury securities.. Continued at ….. http://gamutnews.com/20110627/34440/another-bailout-a-possibility-bernanke-says.html

 

 

Court rules campaign finance matching grants unconstitutional June 27, 2011 By Deirdre Shesgreen WASHINGTON--The U.S. Supreme Court on Monday ruled that supplemental grants triggered by an opponent's spending in state public funding systems are unconstitutional, meaning Connecticut will not be able to revive the matching grants that helped fuel the bids of both Democrat Dannel P. Malloy and Republican Michael C. Fedele in last year's expensive gubernatorial contest. Complete report at http://www.ctmirror.org/story/13080/supreme-court-matching-grants-public-financing-are-unconstitutional

 

 

 

Christie Laughs At Mention Of Malloy by CTNewsjunkie Staff
Posted: Jun 27, 2011 10:44am Complete report at http://www.ctnewsjunkie.com/ctnj.php/archives/entry/gov._christie_laughs_at_gov._malloy/

 

 

 

The Local Government Pension Squeeze (Steve Malanga / Wall Street Journal)  June 27, 2011  Wall Street Journal Annual retiree costs in Providence, R.I., now amount to an astounding 50% of city tax collections. By STEVE MALANGA Although Democratic Mayor John DeStefano has enjoyed a good relationship with the New Haven, Conn., municipal unions through most of his 17 years in office, lately those ties have frayed. He says that workers' wages and benefits have become "the Pac-Man of our budget, consuming everything in sight," and must be cut. Complete report at http://online.wsj.com/article/SB10001424052702304070104576399530309071422.html

 

OP-ED | The Making of King Dannel by Heath W. Fahle Connecticut’s General Assembly will reconvene on Thursday to consider Gov. Dannel P. Malloy’s request for broad power to balance the state’s budget himself. It is a request that the legislature should refuse. Complete report at http://www.ctnewsjunkie.com/ctnj.php/archives/entry/op-ed_the_making_of_king_dannel/

 

 

Malloy says he is trying to limit the number of layoffs coming  June 27, 2011 By Mark Pazniokas  STAMFORD--Gov. Dannel P. Malloy said today he worked over the weekend to limit the number of state employee layoffs he will impose this week in response to labor's rejection of a tentative agreement for concessions and other labor savings. Complete report at http://www.ctmirror.org/story/13081/malloy-says-he-trying-lessen-layoffs

 

 

 

Living Without Mortgage for 10 Years? CT’s Pending Foreclosures Will Take A Decade To Process

 

Georgia illegal immigration law blocked

Number of Millionaires Soars to New High

 

Iowa hopes to avert state shutdown UPI.com DES MOINES, Iowa, June 27 (UPI) -- Iowa Gov. Terry Branstad expressed confidence the state could avert a shutdown when the new fiscal year begins Friday. Continued at http://www.upi.com/Top_News/US/2011/06/27/Iowa-hopes-to-avert-state-shutdown/UPI-53201309195127/?spt=hs&or=tn

 

Minnesotans prep for Friday gov't shutdown  ST. PAUL, Minn., June 27 (UPI) -- Minnesota's Republican lawmakers and Democratic governor are at loggerheads as the hours slip away until a state government shutdown four days away. If an agreement fails to materialize, state parks would be closed, rest areas would be shuttered, highway construction projects halted, all types of licenses could not be sought or renewed and funding would be cut off to a host of medical and social service-type agencies. Continued at http://www.upi.com/Top_News/US/2011/06/27/Minnesotans-prep-for-Friday-govt-shutdown/UPI-58631309191534/?rel=53201309195127

 

Public workers sue Fla. over pension rules

 

Wisconsin lawmakers pass Walker budget

Mich. professors reject school rescue plan

 

Calif. legislators may have to forfeit paySACRAMENTO, June 21 (UPI) -- California's controller said Tuesday state lawmakers must forfeit their pay because the budget they passed last week was not balanced.  Continued at …. http://www.upi.com/Top_News/US/2011/06/21/Calif-legislators-may-have-to-forfeit-pay/UPI-93061308691032/?rel=53201309195127

 

 

Why Public Employee Unions Love Collective Bargaining (blog - John Bury / Burypensions)    Read complete report http://burypensions.wordpress.com/2011/06/24/why-public-employee-unions-love-collective-bargaining/

 

 

Visit http://PensionTsunami.com for daily updates on

Public Pension Issues and More

 

 

Public Pension Plan Funding Woes Mean 30 Years of Higher Taxes, Study Says (Hazel Bradford / Pensions & Investments) By Hazel Bradford  June 24, 2011, 4:01 PM ET  A new study of public pension plans by finance professors Joshua Rauh and Robert Novy-Marx warns that states and municipalities will have to raise taxes each year for the next 30 years to address funding problems.  Pension experts counter that the key assumption of the analysis by Mr. Rauh of Northwestern University and Mr. Novy-Marx at the University of Rochester exaggerates the cost of the pension benefits by removing expected rates of return from the equation. Contact Hazel Bradford at hbradford@pionline.com  Full report at http://www.pionline.com/article/20110624/DAILYREG/110629934