February 13, 2009
Susan Kniep, President
The Federation of Connecticut Taxpayer Organizations
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032
Press Conference In Support of Governor Rell’s
Budget
By The Federation of Connecticut Taxpayer Organizations,
Inc.
February 13, 2009, 12 Noon,
Legislative Office Building, Room 1C,
*************************
The following was presented at a Press
Conference at the Legislative Office Building in Hartford on February 13, 2009.
Good Afternoon:
Thank you for joining us today. I
am Susan Kniep, former Mayor of East Hartford and
President of the Federation of Connecticut Taxpayer Organizations, Inc. The Federation was founded in Connecicut in the mid 1980s. Our goals are today as they were then which
is to promote fiscal austerity on all levels of government thereby constraining
the tax burden on local and state taxpayers. As a government watchdog, the
Federation provides a system of checks and balances with the intent of protecting
taxpayers from unnecessary taxation and government mismanagement or corruption.
I invite you to
visit our website at http://ctact.org/ where you can learn more about
the Federation, its officers and Board members who represent a cross section of
our State. We also provide a profile of
each along with their contact information.
We produce online email publications which are distributed
to thousands of concerned taxpayers throughout our state and beyond Connecticut.
I am here today
to represent The Federation of Connecticut
Taxpayers as we commend Governor Rell for her bold
and courageous approach to addressing the economic crisis of our state through
her innovative 2010-2011 State budget intended to streamline government while
imposing No Tax Increase.
I also
want to thank taxpayer advocate State Representative Arthur O’Neill for his
assistance in arranging this press conference for the Federation.
Nationally,
our economy is in a freefall and spiraling out of control. Our country is in crisis. The blood on Wall Street is flowing down to Main Street as
deteriorating stock prices and a troubled housing market have reduced a
family’s net worth by 20%.
Recently
released national unemployment figures reveal that 1.77 million private sector workers
were thrust onto the unemployment line in the last three months. This equates
to 591,000 jobs lost monthly. In the past year, manufacturing lost more than 1
million jobs, with the auto industry alone giving up 197,000.
On
the home front, Connecticut’s unemployment
rose to 7.6 percent, while Connecticut
officials continue to predict a loss of 60,000 to 80,000 jobs during this
recession.
Our
state is facing budget deficits of over $1 billion in 2009. Deficits could reach $10 billion for 2010-11.
As
Governor Rell looks for $298 million in union
concessions, other governors are making similar proposals. Ohio’s
governor is looking for $250 million in concessions. California’s governor,
with the blessing of the state Supreme Court, will furlough 238,000 employees
two days each month to battle a $42 billion deficit.
The majority of Connecticut taxpayers
work in the private sector under "at-will" conditions wherein they
can be terminated at any time, for any legal reason, or for no reason at all by
their employer. They work in a state of flux knowing that their employer on any
given day can demand that they pay a greater share of their health-care
premium, take on a greater workload, or eliminate their job. There
will be no debate, no bargaining, no arbitration, and no elected official
waiting to defend them.
State
binding-arbitration laws have left taxpayers powerless as state and municipal
government workers exercise their state-given right to force negotiations and push
their agendas, behind closed doors. Unions vote to accept or reject their
contracts. Taxpayers have no vote. Instead, taxpayers are presented with their
tax bills to fund these lucrative union contracts with some
employees retiring with pensions greater than their base pay as overtime is
factored in.
Today,
the 169 towns in Connecticut
dedicate approximately 85% of their budgets to pay for the wages, pensions and
benefits of their town and board of education employees.
It
is disappointing that the Democrat-controlled state legislature has allowed an
$86 million state union contract to go into effect without calling for a vote
on this contract. Some of the 5200
employees under this contract will receive wage increases as high as 6%. The
$86 million cost will be passed on to taxpayers. This contract will also set precedent for
other state and municipal contracts which follow.
Although
many within our state have no health insurance, they are paying through their
taxes for a lucrative healthcare system for our government employees to include
retiree health benefits. In East Hartford, town officials are prepared to transfer
$2.3 million into the retiree healthcare account from the town’s savings
account as the town faces a property tax increase.
State binding
arbitration laws which are driving up the cost of state and local budgets must be
reformed.
And they will
change under Governor Rell’s proposal to suspend binding arbitration requirements
for two years and to limit mandatory subjects of binding arbitration to salaries and benefits. Her efforts will return the management
of government to those whom we elect to serve us.
For example, town
officials will be able to take control of taxpayer owned vehicles. When elected Mayor in 1989,
I refused the Mayor’s car. I also instructed all
town employees to cease driving town cars and trucks home. As
this benefit was not contained in any union contract, I felt confident I would win the
grievance that the unions had filed against me.
I was wrong. I lost my
case due to a seldom-referenced term called "past practice." If the
union is doing something outside the realm of their contract, arbiters have
ruled they have earned the right to do it.
For the towns to get the vehicles back, the towns
have to give something in return to the unions. A few
months ago, during a presentation I offered to taxpayers in the Town of Trumbull, I learned that the
grievance won in the early 90s has standing today, as towns are
attempting to take control of their town owned vehicles. I suggest Governor Rell’s
proposal to limit arbiters to wage and benefits will restore management rights
so that town officials can control the size of their classrooms, their employee
work schedules, and the right to take back town owned cars from town employees,
and much more.
The Federation applauds Governor Rell’s
intent to reduce and consolidate state agencies. To reduce the fleet of
state cars. To
cancel the hundreds of millions of dollars of bonded earmarks projects. And more importantly, her proposal to create an Office of
Accountability to detect fraud and waste in government.
The Governor is doing what we are doing in our own
households. But she cannot do it
alone. The Federation urges all State
legislators to support Governor Rell’s proposals to
reform State Binding Arbitration Laws which are driving up local property
taxes. We urge all State Legislators to
support Governor Rell’s proposal for NO TAX
INCREASE.
The
State unions have launched an expensive campaign to defeat Governor Rell’s budget.
Their slogan, “It Won’t Work,” when referring to Rell’s
budget, is right in one aspect. Her budget will not work for them as they
demand taxpayers pay more in taxes.
As we review our tax standing in Connecticut, it is apparent that adding more
taxes will overburden the overtaxed taxpayers of our State.
According to the U. S.
Department of Commerce, Connecticut has one of
the highest tax burdens in the U.S.
on a per capita basis. For fiscal year 2007,
we ranked fifth highest in the nation at $3,668 for every man, woman, and child
in the state.
When federal and local taxes are combined with state taxes,
Connecticut residents pay the largest portion of their
income to taxes of any state in the entire country at $17.80 per $100 of income
versus $12.80 for the U.S.
or $15.20 for New England. As we rank number 1, we are followed by New York, Massachusetts
and Maryland
respectively.
As state residents pay some of the highest taxes in the
nation, they receive very little back from the federal government as out of
every dollar sent to Washington, only 73 cents has been returned to Connecticut
in federal spending.
When county and
local taxes are added to state taxes and adjusted for Personal Income, Connecticut ranks 8th
highest in the nation at 12.2% which is higher than the national average at
11%.
So
as the State employee unions denounce Governor Rell’s
budget and propose tax increases, Governor Rell’s
budget is being overwhelming supported by taxpayers throughout the State as is
evidenced by the polls.
If
the unions do not cooperate in these trying economic times and expect to place
the burden of increased wages and benefits on the overtaxed taxpayers, the Federation of
Connecticut Taxpayer Organizations proposes that the state legislature enact
the necessary legislation to curtail these contracts, put the public-sector
jobs out to bid, and give the unemployed private-sector worker an opportunity
to submit a resume, references and the salary they would be willing to accept
to do the job.
The
Federation also encourages CEOs of the 169 towns to follow Gov. Rell’s lead by adopting local budgets with no
property-tax increases. It is also
important that municipalities realize that we are way beyond a freeze on
employee wages. All municipalities
should be looking for substantive give backs from their employees if their
employees want to keep their jobs.
The
Federation applauds and supports Gov. Rell in her
proposal for no tax increase. The Federation
will continue to pursue other benefits for taxpayers to include a cap on local
property taxes; additional reforms of binding arbitration and prevailing-wage
laws; a requirement of towns, boards of education and the state to put their
checkbook registers online; citizen audits; an opportunity for early
graduation for high school students; school vouchers and
more.
If
you feel you are overburdened with taxes, please contact your state
representatives and ask them to support Governor Rell’s
budget. If you are uncertain who your
state representative is please contact me at 860-524-6501 or by email at fctopresident@aol.com. Thank you.