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September 30, 2002 Press Release
September 30, 2002 Press Release
THE FEDERATION OF CT. TAXPAYER ORGANIZATIONS, INC.
issues an
URGENT CALL TO CONNECTICUT ELECTED OFFICIALS
to
(1) REVIEW AND REVISE BINDING ARBITRATION LAWs and
eliminate "secret" union contract negotiations
(2) LIMIT CORPORATE WELFARE
by requiring full financial disclosure of
all corporations receiving state tax dollars
(3) ESTABLISH FAIR AND EQUITABLE TAXATION,
control government spending,
eliminate unfunded state mandates
by supporting Connecticut Proposition 13
The Federation of Connecticut Taxpayer Organizations, Inc. (FCTO) is here today to challenge all State and local elected officials as well as candidates vying for public office in the November elections. We want to know your position on the following issues. Do you stand with the taxpayers of Connecticut or with special interest groups which are bankrupting Connecticut and municipal taxpayers?
In the days, weeks and months ahead, FCTO’s voice will be loud and perfectly clear as we strive to reinstate a government of, for and by the people of Connecticut.
Binding Arbitration
Approximately 80% to 90% of municipal budgets pay for personnel related expenses. Due to current binding arbitration laws, taxpayers are being forced to pay high taxes resulting from decisions made by independent arbitrators with no relationship to the municipality they are fiscally impacting. Government salaries, pensions and healthcare benefits are disproportionate to the private sector. Pensions in some cases are exceeding base salaries.
The Federation of Connecticut Taxpayer Organizations (FCTO) is calling upon our State Elected Officials to immediately impanel a Blue Ribbon Commission to study the current effects of binding arbitration upon State and local taxpayers. FCTO feels confident that the results of this study will reveal that taxpayers are being adversely impacted by the escalating costs associated with State and local government employee union contracts. As such, FCTO expects laws governing binding arbitration to be dramatically revised, thereby giving more control over government salaries and government operations to elected government officials.
In addition, FCTO urges lawmakers to immediately enact legislation forcing all state and local arbitration hearings and union contract negotiations to be conducted in full public view. If taxpayers are going to be forced to continue to fund lucrative union contracts, then the negotiation table should be moved out from behind closed doors and into the light of public participation! Government costs will never be brought under control as long as it’s officials relinquishes their control over employee costs to third party arbitrators.
Corporate Disclosure
The Federation of Connecticut Taxpayer Organizations (FCTO) is calling upon State elected officials to follow the direction of Federal authorities who are restructuring SEC and government regulations to protect investors. Billions of Connecticut tax dollars are being invested in Corporations not required to publicly disclose their financial status. Connecticut taxpayers are investors in these companies to the same degree as a stockholder purchases shares of publicly traded stock on the New York Stock Exchange.
Recently, two Connecticut quasi-public Economic Development Agencies refused to disclose details regarding the investment of approximately $1 million Connecticut tax dollars in companies with questionable financial stability. FCTO believes that the FOI Laws must be revised to require full financial disclosure by any Corporation or individual seeking State financing. If any company takes issue with having to provide full disclosure, then they should not expect to receive Connecticut taxpayer dollars.
CONNECTICUT PROPOSITION 13
FCTO urges all State and local elected officials to support Connecticut Proposition 13, which will establish a fair and equitable system of taxation within Connecticut, eliminate unfunded state mandates, and place controls on government spending.
Currently, Connecticut taxpayers pay the highest taxes in the nation. The governor recently signed a $13 billion dollar state budget into law. Yet despite our high taxes, we also have the highest bonded debt per capita, for a total of $13.2 billion dollars. Last year, we paid $600 million in interest on this debt. Recently, we learned that Moody’s, a New York rating agency, gave Connecticut a negative credit outlook due to (1) the depletion of the State’s Rainy Day Fund, (2) the state's ranking as the most indebted per capita in the country, (3) its large unfunded pension liabilities, (4) a shaky state budget with a built in deficit, and (5) plummeting revenues. Moody’s has told the State it must find a long-term solution to its budget woes within the next 18 months or else risk a downgrade.
Today, the greatest cost for Connecticut families is not our mortgage, our car payments, nor our child’s college education. It is instead the money we send to our Connecticut government officials who have imposed a tax on nearly every facet of our lives.
The Tax Foundation, a nonpartisan tax education and research group based in Washington, calculates the tax burdens in each state in terms of time worked. Connecticut workers have the distinction of working the longest, 134 days to pay our local, state and federal taxes. The money we earn from January 1 to May 14, we pay to the government. On day 135, or from May 15 to December 31, we get to keep the money we work so hard to earn.
It is time for taxpayers to impose a system of checks and balances upon their elected government officials. This will result in a more efficient government and reduced taxation.
It is time for CONNECTICUT PROPOSITION 13!
Additional Issues being pursued by FCTO include, but are not limited to,
- A State Constitutional Amendment allowing for State Initiative and Referendum
- Boards of Finance for regional school districts
- Local Initiative and Referendum
- Elimination of Unfunded State Mandates
- Escalating Education and Special Education Costs
- Tighter Enforcement of the State Budget Cap
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