Federation of Connecticut Taxpayer Organizations

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

Yesterday, Keith Phaneuf of CTMirror.org reported Newly adopted CT budget already showing red ink. Therein, Phaneuf writes:

Less than three weeks after legislators approved the new state budget, eroding revenues have opened deficits topping $175 million this fiscal year and nearing $150 million in 2018-19. The consensus report from Gov. Dannel P. Malloys administration and the legislatures nonpartisan Office of Fiscal Analysis also raises the risk the state might exhaust its emergency reserves.

The governors caution regarding our ability to get through FY 18 in balance under the bipartisan budget passed by the General Assembly was well-warranted, Office of Policy and Management Secretary Ben Barnes, Malloys budget director, said Monday. This consensus revenue projection will likely place us more than $178 million in deficit before we have even had an opportunity to effectuate the large lapses and spending cuts built into the budget. OPM will finalize our projection in our letter to the comptroller next week, and the administration will continue to do its part to monitor revenues and expenditures closely. Continue Reading Every Word of this Excellent Report→

Of course, this news is no surprise to many who closely followed the state budget process. On Nov 1, 2017 in the headlined article captioned Connecticut Governor Signs Budget That Keeps Pension Costs Unchanged (James Comtois / Pensions & Investments) Therein, it is noted

Currently, the state pays 100% of the employer contribution to the $15.8 billion Teachers Retirement System and the $11 billion Connecticut State Employees Retirement System. The state government is set to contribute $1.3 billion to TRS for the fiscal year 2018 and $1.32 billion for fiscal year 2019, and $1.2 billion to ERS for fiscal year 2018 and $1.32 billion for fiscal year 2019, said Meg Green, a spokeswoman for the governors office.

Continue reading at http://www.pionline.com/article/20171101/ONLINE/171109994/connecticut-governor-signs-budget-that-keeps-pension-costs-unchanged

On November 9, 2017 Tyler Durden wrote It Begins: Pension Bailout Bill May Be Introduced in Congress (Tyler Durden / Zero Hedge)

Durden writes:

Over the past year we have provided extensive coverage of what will likely be the biggest, most politically charged, and most significant financial crisis facing the aging U.S. population: a multi-trillion pension storm, which was recently dubbed one of the most heated battles of a lifetime by John Mauldin. The reason, in a nutshell, why the US public pension problem has stumped so many professionals is simple: for lack of a better word, it is an unsustainable Ponzi scheme, in which satisfying accrued pension and retirement obligations requires not only a constant inflow of new money, but also fixed income returns, typically in the 6%+ range, which are virtually unfeasible in a world where global debt/GDP is in the 300%+ range. Which is why we, and many others, have long speculated that it is only a matter of time before the matter receives political attention, and ultimately, a taxpayer bailout.

That moment may be imminent. According to Pensions and Investments magazine, Democratic Senator Sherrod Brown from Ohio plans to introduce legislation that would allow struggling multiemployer pension funds to borrow from the U.S. Treasury to remain solvent.

Recently I was asked by Channel 30 to offer my comments regarding the state budget as approved by the State legislature. I used the term smoke and mirrors when defining the credibility of the manner in which the budget was approved. I suggested that soon it would be evident that the budget was unsustainable and in turn could be catastrophic for taxpayers both state and local as the band aid the State legislature applied was guaranteed to fall off due to that which was festering underneath the wound. And yes the budget was definitely wounded. It should have been allowed to die a peaceful death, and our State Legislators should have returned to the drawing board.

Democrats should have admitted their mistake of approving a 10 year contract agreements with the various state employee unions which included job guarantees and wage increases while expecting state and local taxpayers to pick up the remaining tab for the Multi Billion $$$$$ State Deficit.

They should have publicly asked the state employee unions to return to the bargaining table. They could have stated that if the unions refused, Connecticuts State legislature would pursue that which the courts recently upheld in Wisconsin, as describe by the national news network REUTERS.

U.S. appeals court upholds Wisconsin right-to-work law - Reuters

Therein, Reuters reporter Timothy Mclaughlin wrote on July 12, 2017 the following:

A U.S. appeals court on Wednesday upheld Wisconsins so-called right-to-work law, which bars mandatory union membership and prohibits unions and employers from requiring non-members to pay dues.

The plaintiffs did not provide any compelling reason for the 7th U.S. Circuit Court of Appeals in Chicago to revisit an earlier ruling upholding a right-to-work law in a similar case in Indiana, Judge Joel Flaum wrote.

Wisconsin Attorney General Brad Schimel The Constitution does not protect a unions right to take money from non-union members and I am proud to have defended the rule of law in Wisconsin. Continue reading at https://www.reuters.com/article/us-wisconsin-labor/u-s-appeals-court-upholds-wisconsin-right-to-work-law-idUSKBN19X34T

But whether Connecticut State Legislators decide to pursue this issue, the Supreme Court could ultimately hold the key to unlock the stranglehold public sector unions have over government employees who do not wish to join a union and taxpayers.

On Sept 28, 2017 Adam Ashton aashton@sacbee.com noted the following in his article captioned Supreme Court takes Janus right to work case | The Sacramento Bee. Therein, Ashton writes:

Californias public sector unions are bracing for a Supreme Court decision that could lead to steep drops in membership and revenue.

With the Supreme Court agreeing to hear the (right to work) case, we are now one step closer to freeing over 5 million public sector teachers, police officers, firefighters, and other employees from the injustice of being forced to subsidize a union as a condition of working for their own government, said Mark Mix, president of the National Right to Work Legal Defense Foundation. Read more here: http://www.sacbee.com/news/politics-government/the-state-worker/article175980456.html#storylink=cpy

And yes, the decision of the Supreme Court could ultimately impact public sector unions throughout the country to include Connecticut!