The Republican Party has taken much criticism in recent years for its paltry performances in statewide elections, but the GOP has finally done something to warm the hearts and minds of taxpayers: propose a budget that demands givebacks from state employee unions.
Republicans recently proposed a two-year, $39.5 billion alternative budget that relies on more than $500 million in savings from a wage freeze and other concessions from state labor unions. They also want to require future state employees to receive 401(k)-style retirement benefits rather than a pension.
It’s a fair and reasonable ask from a constituency whose salaries and benefits account for more than a quarter of the state budget.
Our support for union concessions is not meant to be an attack on organized labor. We aren’t looking for layoffs or a disbanding of collective bargaining rights, but a wage freeze should be standard practice when the state budget faces billion-dollar deficits. And the idea that new state employees still have access to a pension is mind-numbing at a time when such retirement perks are all but extinct in the private sector.
Unfortunately, the Republican budget is essentially dead on arrival. The GOP carries little political weight in the legislature with Democrats controlling the House, Senate, and Governor’s mansion.
It’s troubling that no Democratic leaders have raised the notion of union concessions to help balance the budget. Instead, Malloy and his fellow Democrats put forward spending plans that either made deep cuts to health and human services nonprofits and/or raised hundreds of millions of dollars in new tax revenues from businesses and individual taxpayers. Unions complained their dedicated public servants were unfairly targeted in the Republican budget, but what about the state’s neediest residents who will lose access to care and treatment under Malloy’s spending plan? Should they not have a voice in the debate as well?
To be fair, state labor unions have been part of the budget-balancing solution in the past. In 2011, they agreed to a two-year wage freeze and new retirement and health benefits restrictions that generated hundreds of millions of dollars in savings.
State employees once again must be asked to shoulder some of the budget pain. At the very least, a two-year wage freeze is reasonable. n
Democrats’ budget cause for concern
Meanwhile, Connecticut Democrats struck another major blow to business confidence last week. First, the Appropriations Committee pitched a reckless $40.5 billion budget plan that sidesteps the state’s mandatory spending cap and proposes more than $500 million in new spending beyond what was recommended by Malloy’s budget, which already drew criticism for increasing business fees and taxes.
Then, the Finance, Revenue & Bonding Committee approved a plan to increase revenues by $1.8 billion over the next two fiscal years, through tax increases, postponing tax breaks, and expanding gaming. Their plan includes more than $350 million in tax increases on corporations and raising the top marginal income tax rate. Lawmakers also want to extend the sales tax to accounting and engineering services.
It appears the Democratic-controlled legislature has failed to grasp the severity of Connecticut’s financial and economic vulnerabilities, opting to continue to spend more money than we have and increase taxes without considering the consequences on the cost of living and doing business in this state.
Tax increases are likely all but inevitable and the results will be the same as they’ve always been: Connecticut will maintain its reputation as one of the worst states to do business in, giving executives here and around the country more reason to do business elsewhere.n
