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March 14, 2013

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: _______________________________