August  8,  2011

 

From The Federation of Connecticut Taxpayer Organizations 
Contact Susan Kniep

Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032

 

 

The following is a Proposed Resolution to be considered by the 169 local legislative bodies throughout the State of Connecticut.  We suggest that concerned taxpayers ask their local elected officials to approve the following Resolution, or a facsimile thereof, which would then be forwarded by them to their State Representative(s) in Hartford, CT.     

 

RESOLUTION TO REFORM

STATE OF CONNECTICUT COLLECTIVE BARGAINING LAWS

 

WHEREAS, we, as local elected officials, are committed to controlling our municipal expenses because our constituents cannot sustain property tax increases in this negative economic environment, and  

WHEREAS, Connecticut taxpayers pay the third highest property taxes in the nation, and

WHEREAS, on average, seventy-five (75%) percent to ninety (90%) percent of Municipal and/or Board of Education budgets are dedicated to personnel related expenses to include wages, healthcare and pensions and

WHEREAS, due to recent reports, we believe that Federal and/or State aid - which we rely upon to offset our property taxes - could be in jeopardy now or in the immediate future, and

WHEREAS, for the first time in U.S. history, Standard & Poor’s downgraded the country’s AAA rating to AA+ contending that the deficit reduction plan passed by Congress was not sufficient to stabilize the country’s debt problems, and  

WHEREAS, subsequent to the first downgrade, Standard & Poor’s has indicated  there is a one in three chance of a further U.S. credit rating downgrade over the next six months to two years, and

WHEREAS, in June, 2011 Moody’s Investors Service revised the outlook on the State of Connecticut’s general obligation bond rating to negative from stable citing  Connecticut’s costs to repay debt are high relative to its budget and that the cost of state pension and other retirement benefits relative to the budget are among the highest in the United States, and

WHEREAS, Moody’s has indicated that in the absence of a clearly articulated plan to achieve meaningful improvement in the state’s pension funded ratios and reduce its fixed costs, as well as progress toward adequate reserve levels, Connecticut’s rating could be downgraded, and

 

WHEREAS,  the State of Connecticut’s Latest Fiscal Accountability Report  of Nov, 2010  revealed that Connecticut’s debt was $72 billion, the majority of which is dedicated to public employee pensions and healthcare costs, and

WHEREAS, Connecticut has the highest net tax-supported debt of any state in the nation at $4,859 per resident, and

WHEREAS, Connecticut taxpayers, among the highest taxed in the nation, were recently burdened with an additional $1.5 billion in new state taxes, and

WHEREAS, Congress in raising the debt limit could ultimately result in wide-ranging cuts in federal aid to states such as Connecticut, and

WHEREAS, the contract being considered by State employee unions contains a four year wage freeze with a 9% wage increase, and

WHEREAS, if the State cannot generate the income necessary to meet its expenses, while legal contracts prevail which secure jobs and mandate a 9% wage increase,    a State reduction in municipal aid could result, and

WHEREAS, union contracts whether in effect or being negotiated could constrain our ability to limit property taxes, and

WHEREAS, Connecticut’s unemployment rate is at 9%, and

WHEREAS, it has become evident that the State Employee Unions in Connecticut have the ability to usurp the power of our State elected officials when formulating a state budget, managing its resources and personnel, and   

 

WHEREAS, independent arbitrators, with no direct relationship to municipalities, are now the decision makers on union contracts subject to arbitration, and

WHEREAS, municipal and state union contracts are disproportionate to the private sector in wages, health and pension benefits, and

 

WHEREAS, the democratic process is weakened by the present Collective Bargaining Laws which exclude taxpayers from contract negotiations and deprive 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 reform  Collective Bargaining Laws to allow the elected officials of our municipality  to better manage our municipal budget, finances, and personnel recognizing these costs are primarily born by the residential and business taxpayers of our town.     Proposed reforms to Collective Bargaining Laws include, but are not limited to, ending the collection of union dues by the state and municipalities, removing management issues from public sector union contracts, ending longevity pay, and prohibiting overtime from being factored into pensions.  In addition, we ask that we be given the authority to freeze wages if necessary and to allow us to protect the town’s reserve funds from being considered in union negotiations.

 

In summary, it is imperative that we immediately be given the tools by the State Legislature to enact the necessary controls over our town’s finances and personnel for the benefit of the taxpayers we serve.  

 

Date: _______________________________