Could a No Layoff Clause for State Employee Unions

Force the State into Bankruptcy?

 

By Susan Kniep, President

The Federation of Connecticut Taxpayer Organizations, Inc.

 

April, 2009

 

 

Last month, the Democrat-controlled state legislature allowed $86 million taxpayer dollars to be paid to state employees, giving some 6% wage increases.

 

As Governor Rell promotes a no tax increase state budget, the Democrat-controlled legislature has taken their case for tax increases to the people.  I attended one of the Democrats’ forums.  I was enlightened.  Democrat Speaker of the House Christopher Donovan disclosed that not one public sector, state employee should be laid off contending this would be bad for the employee, his/her family and the state!  What?  News reports recently disclosed that nationally unemployment in the private sector is the highest it has been in 50 years.  Many, not yet unemployed, live in fear their next pay check could be their last, as State Democrats proclaim they want to protect their voting block, public sector union employees. 

 

Curious to know what Donovan and the two legislators accompanying him pay toward their health insurance which is primarily funded by state taxpayers, I posed the question.  This did not sit too well with one State Legislator who angrily responded that she did not know what she paid and expressed that she was upset that I had asked the question as they work hard and deserve taxpayer funded healthcare.        

 

But here is what we do know and what should concern us all.  The Democrat-controlled state legislature has refused to reform State Binding Arbitration Laws as proposed by Governor Rell.  These reforms would give the Governor and local municipal officials the ability to control their expenses, manage their budgets and personnel, and in turn control taxes.  What the Democrats will undoubtedly support is the agreement recently announced by the Governor and union leaders.  This agreement, in exchange for concessions, would grant State employees a Two Year No-Layoff Guarantee as State Deficit Estimates Top $1 Billion for 2009 and $7.95 Billion for 2010-11.

 

With the economy continuing to plummet, mounting job losses affecting the payment of state and local taxes,  and a two year no-lay off clause for state employees as the state’s debt continues to climb, Connecticut and some of the 169 towns with in the State could be brought to the edge of bankruptcy.  Ironically, the end result would be dissolution of public sector union contracts.