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:
Federal Judge Finds In Favor of Rowland, Against SEBAC
After nearly a decade of litigation, a federal
judge ruled this week that former Gov. John G.
Rowland’s decision to layoff 2,800 unionized state employees at the end of 2002
was not a violation their First Amendment rights. Complete report at http://www.ctnewsjunkie.com/ctnj.php/archives/entry/federal_judge_finds_in_favor_of_rowland_against_sebac/#more
From: The Federation of
Connecticut Taxpayer Organizations
Contact: Susan Kniep, President
Website: http://ctact.org/
Email: fctopresident@aol.com
Telephone: 860-841-8032
July 1, 2011
Cities and towns win, state employees lose in budget deal
By Mark Pazniokas The House Democratic majority and
the administration of Gov. Dannel P. Malloy agreed Thursday to spare
municipalities from proposed cuts in state aid, a change that will come at the
expense of up to 1,000 additional layoffs of state employees if a failed
concession deal is not salvaged….. The House tonight is set to grant Malloy's
request for additional budget-cutting authority in response to the rejection of
the labor deal, but his proposal to curb some collective-bargaining rights will
not be taken up in the House. It will pass the Senate tonight. The budget
cutting authority will come with strings: The legislature intends to retain the
right to review Malloy's additional budget cuts, which would take effect
automatically after a review period if lawmakers do not return for a second
vote Continued at
http://ctmirror.org/story/13139/cities-win-state-employees-lose-budget-deal
Moody's
lowers view on Conn. bonds on low reserves
STEPHEN SINGER, AP Business
Writer June 28, 2011 HARTFORD,
Conn. (AP) — Moody's Investors Service lowered its outlook Tuesday on
Connecticut's general obligation bond rating to negative from stable, saying
the state's prospects of replenishing depleted reserved are slim. The
rating service also said Connecticut's costs to repay debt are high relative to
its budget and that the cost of state pension and other retirement benefits
relative to the budget are among the highest in the United States. The
lower outlook is a signal to investors and others who buy state bonds that Connecticut's obligations have become riskier due to the state's budget troubles. Moody's
warned that it could take more drastic action — lowering Connecticut's rating,
which would lead to higher interest rates for state lending, and pushing up the
state's borrowing costs. Read Entire Article at http://www.mysanantonio.com/news/article/Moody-s-cuts-view-on-Conn-bonds-on-low-reserves-1444375.php
Court strikes down Michigan ban on race in college admissions
Jennifer Chambers and Oralandar
Brand-Williams/ The Detroit News July 01. 2011 2:32PM Detroit— Michigan's ban on using race and gender as a factor in admission to public
colleges and universities was overturned today by a federal appeals court,
which said the voter-approved measure harms minorities and is unconstitutional.
Read complete report at http://www.detroitnews.com/article/20110701/SCHOOLS/107010416/Court-strikes-down-Michigan-ban-on-race-in-college-admissions
CHECK OUT
LIST OF STATE PENSIONS BEING PAID STATEPENSION2010.xls
Here
is what happens when towns go bankrupt…. http://www.bondbuyer.com/news/vallejo_california_unsecured_creditors_bankruptcy-1022294-1.html?ET=bondbuyer:e2782:2060276a:&st=email
My
Turn: Public vs. private: The union debate http://www.salisburypost.com/Opinion/050211-edit-pender-my-turn-WEB-qcd
State Senate Passes Labor
Reform, State House of Representatives Lacks the Courage….. Lawmakers send labor a stern warning with bargaining rights
bill By Keith M. Phaneuf on June
30, 2011 State legislators gave unionized employees an early taste Thursday of
what labor negotiations could be like at the Capitol if major wage and benefit
concessions aren't granted to help balance the new budget. After the Senate
voted 30 to 6 to adopt a measure curtailing collective bargaining rights tied
to pensions and longevity pay, the House of Representatives effectively tabled
the matter, but only after its leaders warned it could be considered later this
summer. Read more http://www.ctmirror.org/story/13144/lawmakers-send-labor-stern-warning
New York Times Reports: Beneath Connecticut’s Image of Affluence, Deep Fiscal Pain For the past two decades, the state has finished dead last
nationally in creating new jobs. A recent forecast by an industrial consulting
firm, IHS Global Insight, projected it would also finish last in job creation
over the next five years. Connecticut’s finances are among the most troubled in the nation: it is last
or close to last in financing pension obligations and retaining reserves for
emergencies, and near the top in per-capita debt. And on Tuesday, Moody’s lowered its outlook for the state’s bond rating
to negative from stable. Despite already passing the largest package of tax
increases in state history, legislators must return to Hartford on Thursday
after an agreement with the state employee unions imploded. But the unbalanced
budget is hardly the only problem. Connecticut, despite its affluent image and
past successes, is facing a startling series of economic and fiscal challenges
that it now has no option but to confront. Read complete article at ….. http://www.nytimes.com/2011/06/30/nyregion/behind-affluent-image-connecticut-faces-economic-pain.html?_r=2
CONNECTICUT TAXPAYERS HAVE HIGHEST PER
CAPITA BURDEN IN THE COUNTRY…… The study reviewed each state's
Comprehensive Annual Financial Report to offset assets against
liabilities. For the first time, a detailed analysis of pension and
healthcare liabilities uncovered the states' actual obligations. From
these calculations, the Institute was able to determine the Taxpayer's Burden.
CHECK
IT OUT HERE….. Results for each state
Institute's 50 State Study uncovers the true financial
condition of the states …. Institute for Truth in Accounting (IFTA) announces
completion of a significant, comprehensive study of all 50 states' assets and
liabilities, including pension and retirement healthcare obligations. Today,
the Institute for Truth in Accounting (IFTA) announces completion of a
significant, comprehensive study of all 50 states' assets and liabilities,
including pension and retirement healthcare obligations. The study
determined that six states had a per taxpayer burden over $20,000: Connecticut ($41,200), Illinois ($26,800), Hawaii ($25,000), Kentucky ($23,800), Massachusetts ($20,100) and New Jersey ($34,600). Continued at ….
http://www.truthinaccounting.org/news/listing_article.asp?section=451§ion2=451&CatID=5&ArticleSource=976
*****************
Geithner Toys With LeavingA1
Treasury Secretary Timothy
Geithner is considering stepping down from his post once policy makers agree to
raise the government's borrowing limit. http://online.wsj.com/article/SB10001424052702304450604576418312707907024.html
Accounting
for American public pensions is still flawed http://www.economist.com/node/18897731
GASB's
Robert Attmore discusses new pension rules
By Melissa Maynard, Stateline Staff Writer June 28, 2011The
Governmental Accounting Standards Board is poised to approve new regulations
that will have a major impact on the way states calculate their pension
liabilities. The changes are meant to make it easier to compare the health of
pension funds from one state to the next. They also would have the side effect
of making states’ long-term finances appear in worse shape than their current
balance sheets indicate.One set of changes relates to the accounting methods
states use to calculate their pension obligations. Under GASB’s current
reporting standards, governments can choose from six different accounting
methods. The new rules would have states all use the same method. In addition,
the orientation of these rules would change significantly. The current system
takes a “funding-based” approach that focuses on how much states pay into the
pension fund each year. The new system would take an “accounting-based”
approach that employs a longer-term view to ensure that the overall costs of
providing benefits are accounted for. Other proposed changes relate to how
pension funds calculate investment returns. Read complete report at http://stateline.org/live/details/story?contentId=584106
Battle lines harden for Obama, Senate GOP as time for debt
deal runs short
Lobbyists took $100K cut in pay to work for members of
Congress http://thehill.com/business-a-lobbying/168709-lobbyists-took-100k-cut-in-pay-to-work-on-the-hill
CHECK
THIS OUT…. Lobbyists to staffers chart
************************
Congratulations to Billy
Michael, an original founder of FCTO, and Dr. Robert Fand for their success on
the following: Bethel finance board wants to end
payroll deduction of union dues The Board of
Finance has created an informal tie to the tea party by passing a nonbinding
motion to end the town's practice of electronically collecting and distributing
union dues. Continued at
http://www.newstimes.com/default/article/Bethel-finance-board-wants-to-end-payroll-1446276.php
*************************
The following is a Letter to the
Editor of the Record-Journal bySandra Feld of Southington, a Board Member
of FCTO. Sandra has for years been attempting to constrain taxes in Southington for overtaxed taxpayers. Here is one example. As Board of Education funds
are spiraling out of the control in the 169 towns throughout the state, there
are many who could apply Sandra’s remarks to their own towns. Her article is
captioned: Unaffordable and reads Dear Editor: I was mentioned in the June 23
Record-Journal editorial encouraging renovation of our 2 Middle Schools. I did
not recommend, “. . . cooling mechanisms in certain rooms, like those which
contain classes.“ I favored air conditioning for general areas: cafeterias,
auditoriums and staff quarters, as did John Leary, BOF Chair. He also requested
this plan be functional and eliminate fluff, such as: 2 baby grand pianos,
climbing walls in gyms, professional fitness centers (6 elliptical machines, 4
stair steppers, 6 stationary bikes, 8 treadmills, cybex life fitness) saying,
“. . . while nice, are they necessary? How do we trim this back?” This
editorial dubbed this obscene renovation “a necessary and worthwhile use of
municipal funds.” That’s taxpayer money. And further “an up-to-date, fiscally-
palpable design” — 48 girls and 24 boys showers in each school, Play Stations,
iPads, digital cameras, new seating in auditoriums, multiple printers, copiers,
scanners, even lounge-type bean bags for comfortable seating in reading areas.
Ask taxpayers if these are fiscally palpable. With our state budget in
freefall, the 56 percent state contribution on which this plan is built, is in
doubt. BOF member John Moise pointed out even if we get 56 percent from the
state, our bond of $48 million carries another $25 million interest for a total
taxpayer expense of almost $75 million! BOF member Kevin Beaudoin stated, every
taxpayer should be aware that the mill rate will increase by 6 percent in the
1st year of this bond for just this item. What about our town’s crumbling
infrastructure necessities like sewer, bridge and road repairs? And how much
more for the operating budget? Before the state tells us how much we’re getting
for these, we will have a referendum on our November ballot for $100 million
for these renovations. Taxpayers can’t afford it.
*************************
Congratulations to the Clinton Taxpayers Association for their success in defeating the budgets in their town.
I was delighted to have the opportunity to meet and talk with them this past
week. They are an energized group focused on fiscal responsibility in Clinton. Susan Kniep Clinton education budget faces third referendum Wednesday
*************************
Great Call in Cable Show by the New London Taxpayer Group,
Lower Our Taxes– Thank you for inviting me to
participate last week. Keep up the good work. Susan Kniep
*************************
Minnesota State Government Shuts Down Minnesota Governor Mark Dayton
(D) and top Republican state lawmakers failed to reach a budget deal to avert a
government shutdown ahead of a midnight (CST) deadline.
OP-ED | Legislature Gives Malloy Power
To Take $18M From Working Poor to increase next year’s surplus. by Jonathan Pelto Posted: Jul 1, 2011 10:25am As
Connecticut slept last night, Democrats in the Legislature rolled over and
gave Governor Malloy the authority to cut up to 10 percent without Legislative
oversight. http://jonpelto.wordpress.com/2011/07/01/they-did-it-legislature-legislature-gives-malloy-super-authority-and-takes-18-million-from-working-poor-to-increase-next-year%e2%80%99s-surplus/
Accounting
for American public pensions is still flawed, The Economist
http://www.economist.com/node/18897731
The Revenue Demands of Public Employee Pension Promises ...
http://kelloggfinance.wordpress.com/2011/06/21/the-revenue-demands-of-public-employee-pension-promises/
Has Washington Learned Its Hard
Stimulus Lesson? Investor's
Business Daily By HOWARD RICH 06/29/2011 There's no joy in
saying "We told you so." Not when millions of Americans are beset by
falling home prices, stagnant income levels, deteriorating job opportunities
and rising consumer prices. And let's not forget the trillions of dollars in
debt America's politicians have saddled taxpayers with in an unsuccessful
effort to alleviate these economic ills. Continued at …. http://www.investors.com/NewsAndAnalysis/Article/576826/201106291815/Has-Washington-Learned-Its-Hard-Stimulus-Lesson-.htm
New York Property Tax Cap Signed Into
Law
Congressional
budget cuts threaten nutrition safety net
Gloria McAdam http://ctmirror.org/node/13109
Republicans not buying bill to plug gap in budget By Kenton Robinson Day Staff Writer GOP
leaders say Malloy would have too much power ….. The bill would also give
SEBAC, the State Employees Bargaining Agent Coalition, until Aug. 31 to accept
the concessions package. For Senate Minority Leader John McKinney, R-Fairfield,
and House Minority Leader Lawrence Cafaro, R-Norwalk, the bill was tantamount
to the legislative branch of government ceding its power to the executive.
"The one thing we know is going to happen at this point is that the
Democratic leadership and Democratic members of the General Assembly are going
to hand to one person, Gov. Malloy, the unprecedented power to cut $1.6 billion
from our budget," said McKinney. "Never before in the history of the
state of Connecticut have we given such power to the governor. "My
question to my colleagues is, 'Why did you run for office? If you're unwilling
to make decisions, even tough decisions, get out, step out of the way and let
someone in who is willing to make those decisions,'" he said. Read
complete article at
http://www.theday.com/article/20110701/NWS12/307019846
West
Hartford
- Council Set To Consider 14.5 Percent Raise For Clerk's
Position Result of Vote: http://whtalk.blogspot.com/2011/06/taxes-go-up-town-clerk-to-get-raise.html
GOP Attacks Obama’s Call for Ending Tax Breaks ... Wall St Journal Democrats effectively lost the last
fight over taxes in December, when the Bush-era breaks were up for renewal.
Back then, Republicans successfully portrayed tax increases as a threat to
small businesses and jobs. This time around, Democrats are trying a couple of
new tactics…… “If we choose to keep those tax breaks for millionaires and
billionaires, if we choose to keep a tax break for corporate jet owners, if we
choose to keep tax breaks for oil and gas companies that are making hundreds of
billions of dollars, then that means we’ve got to cut some kids off from
getting a college scholarship,” said Mr. Obama (who happens to have the coolest
jet of all). “That means we’ve got to stop funding certain grants for medical
research. That means that food safety may be compromised. That
means that Medicare has to bear a greater part of the burden. Those are
the choices we have to make.” Read complete article at http://blogs.wsj.com/washwire/2011/06/29/gop-attacks-obamas-call-for-ending-tax-breaks-for-corporate-jets/
U.S. Set to Probe CIA Jail Deaths
Attorney General Holder ordered
a criminal probe into the deaths of two prisoners interrogated by the CIA in
the years following the Sept. 11, 2001, terrorism attacks.