March
14, 2013
From The Federation of Connecticut Taxpayer Organizations
Contact Susan Kniep
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032
Approximately
85% of local property taxes are dedicated to personnel related expenses. Those expenses are driven either by Binding
Arbitration or fear of Binding Arbitration thereby forcing towns to acquiesce
to union demands at the bargaining table.
The
end result is a bill, in the form of a property tax, which is ultimately
presented to the homeowners and businesses in the town in which those decisions
are made.
With
the governor’s latest proposal to end the collection of automobile taxes on
vehicles assessed below $20,000 and to divert state funding, previously relied
upon to management a town’s general fund, municipalities are then at the mercy
of municipal unions and state arbiters which ultimately determine how much
money a town can keep versus the amount of money allocated to the unions. This includes not only decisions on wage
increases, pensions and healthcare, but union grievances which also impact the
finances of a town and its capability to manage its personnel.
As
a town’s revenue stream is impacted by State law coupled with the laws
governing Binding Arbitration – a perfect storm is on the horizon bringing
significant property tax increases which could ultimately force homeowners and
businesses from their properties through tax lien sales.
It
is now time for the Governor and State Legislature to significantly reform our
Collective Bargaining Laws, specifically Binding Arbitration.
The
management of our towns and Boards of Education must rest with those whom voters
elect to office.
As
such, we are asking the leaders of the Legislative bodies of the 169 towns
throughout Connecticut
to lobby their state legislators to bring about reform on behalf of the
taxpayers they were elected to serve.
The
following resolution is to serve that purpose either in the format we have
presented or a facsimile thereof.
RESOLUTION TO REFORM
STATE OF CONNECTICUT COLLECTIVE BARGAINING LAWS
WHEREAS, we, as local elected
officials, are committed to controlling our municipal expenses because our
constituents cannot sustain property tax increases in this negative economic
environment, and
WHEREAS, Connecticut taxpayers pay the third highest property taxes in the
nation, and
WHEREAS, on average, seventy-five (75%) percent to ninety (90%)
percent of Municipal and/or Board of Education budgets are dedicated to
personnel related expenses to include wages, healthcare and pensions and
WHEREAS, independent arbitrators,
with no direct relationship to municipalities, are now the decision makers on
union contracts subject to arbitration, and
WHEREAS, municipal
and state union contracts are disproportionate to the private sector in wages,
health and pension benefits, and
WHEREAS, the democratic process is
weakened by the present Collective Bargaining Laws which exclude taxpayers from
contract negotiations and deprive local elected officials of the necessary
authority to manage their municipal budgets and personnel costs,
WHEREAS, the State of Connecticut’s Latest Fiscal Accountability Report of Nov, 2010
revealed that Connecticut’s debt was $62 billion, the majority of
which is dedicated to public employee pensions and healthcare costs, and
WHEREAS, Connecticut has the highest net tax-supported debt of any state
in the nation at over $5,000 per resident, and
WHEREAS, if the State cannot
generate the income necessary to meet its expenses, while legal contracts
prevail which secure jobs and mandate a 9% wage increase, a State reduction in municipal aid could
result, and
WHEREAS, union contracts whether in effect or being negotiated could
constrain our ability to limit property taxes, and
WHEREAS, Connecticut’s unemployment rate is at 8.7%,
NOW, THEREFORE, BE IT RESOLVED that
the local Legislative Body of (town/city)_____________________________
urges our State Representatives to reform
Collective Bargaining Laws to allow the elected officials of our
municipality to better manage our municipal
budget, finances, and personnel recognizing these costs are primarily born by
the residential and business taxpayers of our town. Proposed reforms to Collective Bargaining
Laws include, but are not limited to, ending
the collection of union dues by the state and municipalities, removing
management issues from public sector union contracts, ending longevity pay, and
prohibiting overtime from being factored into pensions. In addition, we ask that we be given the
authority to freeze wages if necessary and to allow us to protect the town’s
reserve funds from being considered in union negotiations.
In summary, it is imperative that we immediately be given
the tools by the State Legislature to enact the necessary controls over our
town’s finances and personnel for the benefit of the taxpayers we serve.
Date:
_______________________________