Federation of Connecticut Taxpayer Organizations

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.