Federation of Connecticut Taxpayer Organizations

From the Federation: �As the estimated cost to insurers for Hurricane Irene �fell to about $2.6 billion in the US, �Irene fraud costs 42 state employees their jobs which includes the termination of 27 employees and resignation and/or retirement of another 15.�

As state employees and others are thrust into the job market, the following headlines are not welcoming news:� 'Jobs gap' won't close till 2020 , Health reform's cost under scrutiny. �

But there have been some gains.� Governor Malloy gained two lawsuits � one filed, the other pending - which appear to be based on his two executive orders expanding collective bargaining rights.� The lawsuit filed by We The People of Connecticut, a Waterbury-based constitution advocacy group, is described in the article by CTNewsJunkie.com captioned Lawsuit: Executive Orders �Akin to Slavery,� Administration Questions Legal Theory. �The lawsuit to be filed by Yankee Institute is described by CTMirror.org in their article captioned With Simmons as new chair, Yankee about to sue Malloy.

Governor Malloy�s Executive Orders �provide a path for child-care workers and home-care attendants who work in state-funded programs to organize and gain collective bargaining rights.��

As the issue of the haves and have nots is debated, there are some who believe that� Government Employees Are The True 1% (Wayne Allen Root / Union Watch).� The author states �On the federal level, it was just reported by USA Today that the average federal civil servant compensation is $123,049 per year.� That�s more than double what private sector workers earn (average of $61,051). Since 2000, federal government employee compensation has grown by 36.9% versus 8.8% for private sector employees.�

To understand the severity of the issue of lucrative government salaries and pensions and the strain on the taxpayers who are forced to finance them, visit the website of PENSIONTSUNAMI.COM http://pensiontsunami.com/ where they illustrate the impact of public sector wages and benefits on local and state budgets� throughout the country.�

Then decide how you would answer the following question which is now being debated at the State - Should state government offer a retirement plan for private citizens? And consider that within RealClearMarkets - Growing List of Winners, Losers Among the States Connecticut is noted as bearing� the highest per-capita debt burden of any state in the nation as Governor Malloy unveils plan to reverse two decades of damage to employees' pension fund which has enough assets to cover only 48 percent� of its obligations. ��

Faced with a large deficit left by his predecessor, Governor Malloy imposed the largest tax increase in the State�s history of $1.5 billion.� At the time we were led to believe that the 9% wage increase and no layoff guarantee given to State employees would in turn result in savings to the taxpayers.� Now we learn that the State Comptroller's report lacks analysis of concessions savings.� A couple of weeks ago it was reported that Red v. Black: Comptroller Lembo's bottom line a different color than the governor's .� The article went on to say that �Comptroller Kevin P. Lembo and Gov. Dannel P. Malloy don't see eye-to-eye when it comes to state finances. Lembo, whose office certifies the official monthly budget assessment, reported his first deficit of the fiscal year Wednesday, projecting a $20.7 million shortfall in the general fund.� The governor's budget office says the state is on pace to finish with a $35.9 million surplus.� So who do you believe?

And what does the future hold?� As noted within the Spring 2012 issue of The Connecticut Economy, the State's recovery picks up speed, but still has many years to go. �It was reported that Connecticut can expect to gain about 9,200 jobs in 2012, up from the 8,600 jobs in 2011, but less than the 12,000 plus jobs Connecticut gained in 2010, which resulted from the influx of federal stimulus dollars.� As the report anticipates that it will take Connecticut� many more years to regain the near 120,000 jobs lost in the last recession, Partisan battle lines are drawn over the spending cap debate between Governor Malloy and the Republicans.��

The Spending Cap was enacted in 1991 by the State legislature and overwhelming solidified by Connecticut voters in 1992 within the 28th Amendment of the state Constitution.� The intent of the cap was to control spending following the passage of the State Income Tax, but that did not stop former Governor Rell from exceeding the cap as Governor Malloy is now proposing to do.��

The State�s fiscal year which does not begin until July1, 2012 already is projected to have a deficit of $424 million under Governor Malloy�s $20.7 billion budget. As some State retirees reap lucrative pensions as high as $267,000 with healthcare benefits, State taxpayers have an unpaid bill to State retirees of $47 billion in unfunded pension and retiree healthcare promises

As Deficits Push N.Y. Cities and Counties to Desperation, the Federal Govt. sets record deficit in February. �According to the Washington Times �The federal government recorded its worst monthly deficit in history in February, according to a preliminary report Wednesday from the Congressional Budget Office that said the deficit in fiscal year 2012 is already more than half a trillion dollars. The CBO�s figures show that despite repeated efforts to trim spending, the government has borrowed 42 cents of every dollar it spent during the first five months of this fiscal year. The nonpartisan agency projected the government will run a deficit of $229 billion in February, the highest monthly figure ever. The previous high was $223 billion a year ago, in February 2011.�

Among Connecticut�s 169 towns, could bankruptcy be on the horizon?� If so, it appears �U.S. Governors Have Few Answers as Cities Face Bankruptcy Risk ...

Reuters recently reported that UPDATE 4-Harrisburg, Pa. to skip two debt payments noting that �Pennsylvania's distressed capital city, Harrisburg, will skip $5.3 million of debt payments due next week, the first time the city has defaulted on its general obligation bonds, to ensure there is enough cash to fund vital services�.�

As Stockton residents watch their port city slip away , within three months, the Central Valley city of 300,000 could become the nation's largest municipality to file for bankruptcy.� As reported by the Latimes, one disgruntled taxpayer responded� "People are paying plenty of taxes. This is a high-tax town. The problem is the sweetheart deals they gave the employee unions. I'm 56 and I can't retire; I'd go broke. But these public employees have tremendous retirement deals. I want to see the city go bankrupt now. Break the deals."

But it appears some New York cities have found an innovative way� To Pay New York Pension Fund, Cities Borrow From It First ... while Governor �Cuomo�s Pension Plan Rejected by New York � Assembly Democrats.

And if you are wondering why municipalities are being driven to bankruptcy, check out the Investigative Report by Mark Lagerkvist From New Jersey Watchdog captioned �Retired� Atlantic City Tourism Cop Hits Nj Pension Jackpot ... . Therein it is noted that �Tom Gilbert never really retired, but he collects a $93,380-a-year state pension. The commander of the Atlantic City Tourism District �retired� last year, though only on paper. He remains on duty � and on the Attorney General�s payroll with an $80,620 state salary.

Within the� COMMENTARY: GAO report buries ugly truth about doomed public ... pension plans it is noted that �The Government Accountability Office buries the scariest truths found in its sampling of 3,400 state and municipal pension systems for 27 million workers and retirees, with a closer look at 16 state and city plans. Most discouraging is the fact that despite desperate recent reform efforts, public defined-benefit pension plans ultimately are doomed unless we pump trillions more dollars into them, and even that emptying of public coffers is endangered by reckless shortsighted policies of politicians and fund managers.�

So what is the State of our State?� According to the State�s Fiscal Accountability Report, taxpayers and their children will be paying off a $71 billion debt.

In January,� it was reported that Connecticut was on the list of Ten States That Cannot Pay Their Bills as the State used borrowed funds to meet expenses.� �

As Connecticut taxpayers are faced with $1.5 billion in new taxes, Connecticut State employees can look forward to a 9% wage increase and four year job guarantee.� But they want more - specifically $93 million more � and they are going through the courts to get it as the following describes�� Judge: State Employees' Class Action Suit Against Anthem Can Proceed - $93M In Compensation Sought For 30,000 Workers, Retirees.�

A relevant question is � What were State Employees Paying for their healthcare 10 years ago versus the costs passed on to taxpayers.� In 2010, the Federation published the following.� CONNECTICUT STATE TAXPAYERS ARE PAYING OVER $5 BILLION FOR HEALTHCARE IN 2009. ��

What are state employees currently paying for their healthcare?� The State has published on its website current employee healthcare policy costs vs those paid by the State; i.e. the taxpayer.�� You may have limited healthcare coverage or none at all, but your taxes are paying for a lucrative healthcare system for our state employees � you will be shocked to learn how much you are paying versus what the state employee is paying � check it out at �..� http://www.osc.ct.gov/empret/healthin/2011hcplan/ActiveBiWeeklyMed-RxRates2011-2012.pdf.�

While some state employees are suing to garner $93 million in compensation, �Retired Teachers Rally To Save Health Insurance From Budget Axe .�

But it appears there is at least one state employee who is a little better off as described by Jonathan Pelto in his OP-ED | State To Give Pension To Adamowski.� Therein, he notes �� Fresh off being paid well over a million dollars to run the Hartford School System for the last five years, Steven Adamowski was appointed �Special Master� of the Windham School System late last summer by Governor Malloy�s administration. At $225,000 a year, plus benefits that include five weeks of paid vacation, three weeks of sick time and 100% paid health benefits for himself and his wife and fully funded life and disability insurance, Adamowski will be responsible for overseeing Windham�s school system�.

The State has also published through its new transparency website the wages and pensions of State employees which can be found at transparency.CT.gov.

In Salary and Benefits during fiscal year 2011, State of Connecticut Employees Earning 250,000 Dollars to 2,403,224 Dollars.

In 2010, payments were made to 41,950 retirees or beneficiaries totaling over $1.26 billion. State Employee Pensions of $100,000 and More are noted at the following web link.� http://www.ctact.org\upload\home\PensionNew.xls

The state was also noted among the 10 Worst States to Retire In: They're Frosty and Costly.�

What can you do as a concerned taxpayer in your Connecticut town as you realize that approximately 85% of your property taxes pay for your Town and Board of Education wages, pensions and healthcare benefits?� FIRST, Ask your local elected officials to take the table at which union contracts are negotiated out from behind the closed door of secrecy and into the light of public debate.� With approximately 85 cents of every property tax dollar paying for these contracts shouldn�t you be entitled to know what your Municipal and Board of Education elected officials are proposing versus what the unions are demanding?� Shouldn�t you know this before the contracts are agreed to and you receive your property tax bill?� We think so!� �SECOND, �ask your local elected officials to consider the following resolution or a facsimile thereof and to in turn send the Resolution to their local legislative leaders�.

RESOLUTION TO REFORM STATE OF CONNECTICUT COLLECTIVE BARGAINING LAWS

Internationally,�� the Taliban Vows Revenge for U.S. Soldier's Alleged Shooting Rampage and the White House moves to put Republicans on defensive over Iran, Israel policies, the chairman of the Joint Chiefs of Staff, Gen. Martin E. Dempsey, gave the Senate several reasons why� U.S. Syria Intervention Would Be Risky, Pentagon Officials Say.� They include according to the NY times:� �the risks in attacking Syria�s plentiful and sophisticated Russian-made air defenses, which are located close to major population centers; arming a deeply splintered Syrian opposition; the potential for starting a proxy war with Iran or Russia, two crucial allies of Syria; and the lack, at least so far, of an international coalition willing to take action against the government of President Bashar al-Assad.�

Check out previous Tax Talk Publications at �� http://ctact.org/