Note that if you have
received more than one copy of this email publication, wish to be removed from FCTO's email list, or add a friend, please notify
FCTO at fctopresident@aol.com . Thank you.
BREAKING NEWS……
Blagojevich convicted on corruption charges Former Illinois Gov. Rod Blagojevich was
convicted on 17 of the 20 public corruption charges against him. The jury
acquitted him on one count of bribery. FULL STORY
Indebted Illinois Stiffs
Creditors From Funeral Homes to Xerox
http://www.bloomberg.com/news/2011-06-24/illinois-stiffs-vendors-from-mortuary-to-ibm-as-4-billion-debt-piles-up.html
From: The Federation of
Connecticut Taxpayer Organizations
Contact: Susan Kniep, President
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032
June 27, 2011
AN
OPEN LETTER TO GOVERNOR MALLOY AND
ALL
CONNECTICUT
STATE LEGISLATORS
PLEASE
EMPANEL A BLUE RIBBON COMMISSION TO ADDRESS COLLECTIVE BARGAINING WITH A FOCUS
ON REFORM
From The Federation of Connecticut Taxpayer Organizations,
Contact Susan Kniep,
fctopresident@aol.com,
http://ctact.org/, 860-841-8032
June 26, 2011
The following was highlighted in
a New York Times article on June 25, 2011.
Fred
V. Carstensen, a professor of economics at the
University of Connecticut, the director of its Connecticut Center for Economic
Analysis and a state employee, said workers made a catastrophic mistake, voting
down a relatively generous and thoughtful agreement. He said rejection would
throw the state into “a double-dip recession” and wreck chances of addressing
the state’s long-term fiscal needs.
As such we ask that, in addition
to implementing the Governor’s state employee layoff plan, you lend your
support to Empaneling a Blue Ribbon Commission to
address the issue of Collective Bargaining with a focus on Reform. The Federation would welcome an opportunity
to serve on this commission and we suggest that CCM, CBIA, and the Consortium
for Fiscal Responsibility be among others invited to participate.
The recent rejection by the
State Employee Unions of the proposed concession package offered by Governor
Malloy placed a spotlight on the unhealthy control of State Employee Unions
over our State, its budget, personnel and finances, as well as the devastating
impact it will have on taxpayers throughout our state.
It also put a focus on
Connecticut’s Collective Bargaining rules which required the agreement be
approved by 14 of the 15 unions in the State Employees Bargaining Agent
Coalition.
In addition, although you were
elected to manage our State, frequently you are prohibited from doing so due to
the terms of union contracts which have either been previously agreed to by
both management and labor or which have been imposed by arbiters through
Collective Bargaining.
As union contracts are
negotiated in secret, voters/taxpayers are frequently removed from the process
although you expect us to pay the associated costs through the various forms of
taxation you and municipal leaders impose upon us.
And those costs are guaranteed
to escalate as property taxes increase if municipal aid to the 169 towns
throughout Connecticut
is reduced as suggested in Governor Malloy’s “Plan B” which in May was estimated
at $482 million in potential cuts.
Further, the proposed
termination of 7500 state employees will impact services and the State’s
unemployment insurance fund. In January, 2011 it was reported that “ Connecticut has borrowed
$581 million from the federal government's unemployment loan program since the
state's unemployment insurance trust fund hit empty in October 2009.”
In 2009, the Hartford Business Journal
put a focus on this issue
“Connecticut’s unemployment
insurance fund has become insolvent, which will force the state to borrow
nearly $1 billion over the next two years so jobless residents can continue to
collect unemployment checks. The state’s unemployment insurance fund ran out of
money Oct. 13, and the state has already borrowed $80 million to make up for
the shortfall. By the end of 2009, those loan amounts are expected to increase
to $260 million. Through 2012, state officials predict the state may need to
borrow up to $900 million.” http://www.hartfordbusiness.com/news11111.html
For
years, the Federation has called for reforming state laws which give greater
control of state and municipal finances and personnel to the unions as opposed
to those whom voters elect to office.
In
a 2004 publication, captioned FCTO Proposes Changes to State Binding
Arbitration Laws Based on Anthem Stock Lawsuit we proposed eliminating HealthCare Costs and
Issues from Contract Negotiations and Arbitration.
In 2009, the Federation participated in a Press Conference at the Capitol
and suggested that BINDING ARBITRATION LAWS COULD BANKRUPT CONNECTICUT . Therein we lent our support to Governor Rell’s proposal which in her words asked for the “Suspension of binding arbitration requirements for
two years while we confront our economic troubles…..” Governor Rell’s request was denied by the State legislature.
In 2011, the Federation offered
testimony on bills which were not approved but would have constrained costs at
the state and within municipalities regarding a freeze on wages and protection
of reserve funds.
It is apparent that the
Collective Bargaining process has failed our state, its taxpayers and those we
elect to office.
It is time for a change.
We ask that you put in motion the process to facilitate that change through a
reform of State Collective Bargaining
Laws.
******************************
John Pelto is to be
commended for his excellent article which follows. Every Connecticut
voter and taxpayer should closely monitor this issue. Any Legislator who does not accept his
responsibility and do his job in this budget process should resign!
Malloy to Legislature: Give
me the power, go home and I'll take care of everything. Jonathan Pelto June 24, 2011 Hartford—The system of checks
and balances is one of - if not the - most important element of a true
representational democracy.Malloy's
request is not only a bad one - it is a horrific proposal - and every single legislator
(Democrat or Republican) should remember their solemn oath to the Constitution
and their constituents. Legislators have a job to do and now is the time they
must do it. Read complete report at http://www.fairfieldweekly.com/news/blogs/nh-malloy-to-legislature-give-me-the-power-go-home-and-ill-take-care-of-everything-20110624,0,3122437.story
Another Bailout a Possibility, Bernanke
Says Gamut News June 27, 2011 Although Federal Reserve Chairman Ben Bernanke is predicting an economic rebound, he’s also
leaving the door open for another round of stimulus money. He spoke after U.S.
central bankers met Wednesday in Washington,
saying The Fed would be “prepared to take additional action” including buying
up more Treasury securities.. Continued at ….. http://gamutnews.com/20110627/34440/another-bailout-a-possibility-bernanke-says.html
Court rules campaign finance matching grants unconstitutional June 27, 2011 By Deirdre Shesgreen WASHINGTON--The U.S. Supreme
Court on Monday ruled that supplemental grants triggered by an opponent's
spending in state public funding systems are unconstitutional, meaning
Connecticut will not be able to revive the matching grants that helped fuel the
bids of both Democrat Dannel P. Malloy and Republican
Michael C. Fedele in last year's expensive
gubernatorial contest. Complete report at http://www.ctmirror.org/story/13080/supreme-court-matching-grants-public-financing-are-unconstitutional
Christie Laughs At Mention Of Malloy by CTNewsjunkie Staff
Posted: Jun 27, 2011 10:44am Complete report at http://www.ctnewsjunkie.com/ctnj.php/archives/entry/gov._christie_laughs_at_gov._malloy/
The Local Government Pension Squeeze (Steve Malanga / Wall Street
Journal) June 27, 2011 Wall Street Journal Annual retiree costs in Providence, R.I.,
now amount to an astounding 50% of city tax collections. By STEVE MALANGA Although Democratic Mayor John DeStefano has enjoyed a good relationship with the New
Haven, Conn., municipal unions through most of his 17 years in office, lately
those ties have frayed. He says that workers' wages and benefits have become
"the Pac-Man of our budget, consuming everything in sight," and must
be cut. Complete report at http://online.wsj.com/article/SB10001424052702304070104576399530309071422.html
OP-ED | The Making of King Dannel by Heath W. Fahle Connecticut’s General
Assembly will reconvene on Thursday to consider Gov. Dannel
P. Malloy’s request for broad power to balance the state’s budget himself. It
is a request that the legislature should refuse. Complete report at http://www.ctnewsjunkie.com/ctnj.php/archives/entry/op-ed_the_making_of_king_dannel/
Malloy says he is trying to limit the number of layoffs
coming June 27, 2011 By Mark Pazniokas STAMFORD--Gov. Dannel
P. Malloy said today he worked over the weekend to limit the number of state
employee layoffs he will impose this week in response to labor's rejection of a
tentative agreement for concessions and other labor savings. Complete report at
http://www.ctmirror.org/story/13081/malloy-says-he-trying-lessen-layoffs
Living Without Mortgage for 10 Years?
CT’s Pending Foreclosures Will Take A Decade To Process
Georgia illegal immigration law blocked
Number of Millionaires Soars to New High
Iowa hopes to avert state shutdown
UPI.com DES MOINES, Iowa, June 27 (UPI) -- Iowa Gov. Terry Branstad expressed confidence the state could avert a
shutdown when the new fiscal year begins Friday. Continued at http://www.upi.com/Top_News/US/2011/06/27/Iowa-hopes-to-avert-state-shutdown/UPI-53201309195127/?spt=hs&or=tn
Minnesotans
prep for Friday gov't shutdown ST. PAUL, Minn., June 27 (UPI) -- Minnesota's Republican lawmakers and
Democratic governor are at loggerheads as the hours slip away until a state
government shutdown four days away. If an agreement fails to materialize, state
parks would be closed, rest areas would be shuttered, highway construction
projects halted, all types of licenses could not be sought or renewed and
funding would be cut off to a host of medical and social service-type agencies.
Continued at http://www.upi.com/Top_News/US/2011/06/27/Minnesotans-prep-for-Friday-govt-shutdown/UPI-58631309191534/?rel=53201309195127
Public
workers sue Fla. over pension rules
Wisconsin
lawmakers pass Walker budget
Mich.
professors reject school rescue plan
Calif.
legislators may have to forfeit paySACRAMENTO, June
21 (UPI) -- California's
controller said Tuesday state lawmakers must forfeit their pay because the
budget they passed last week was not balanced.
Continued at …. http://www.upi.com/Top_News/US/2011/06/21/Calif-legislators-may-have-to-forfeit-pay/UPI-93061308691032/?rel=53201309195127
Why Public Employee Unions
Love Collective Bargaining (blog - John Bury /
Burypensions) Read
complete report http://burypensions.wordpress.com/2011/06/24/why-public-employee-unions-love-collective-bargaining/
Visit http://PensionTsunami.com for daily
updates on
Public Pension
Issues and More
Public Pension Plan Funding
Woes Mean 30 Years of Higher Taxes, Study Says (Hazel
Bradford / Pensions & Investments) By Hazel Bradford June 24, 2011, 4:01 PM ET A new study of public pension plans by finance
professors Joshua Rauh and Robert Novy-Marx
warns that states and municipalities will have to raise taxes each year for the
next 30 years to address funding problems. Pension experts counter that the key
assumption of the analysis by Mr. Rauh of
Northwestern University and Mr. Novy-Marx at the
University of Rochester exaggerates the cost of the pension benefits by
removing expected rates of return from the equation. Contact Hazel Bradford at hbradford@pionline.com Full report at http://www.pionline.com/article/20110624/DAILYREG/110629934