Federation of Connecticut Taxpayer Organizations

As we celebrate the 4th of July and reflect upon the catalysts of the American Revolution of 1775 as the British government raised revenue by taxing the colonies through the Stamp Act of 1765, the Townshend Tariffs of 1767 and the Tea Act of 1773, we recognize the many brave men and women of today who are protesting the heavy taxation imposed on families not only by the State of Connecticut but also within the 169 Connecticut towns. As such, we commend the Taxpayers of New London, CT who according to the Day of New London Residents petition New London budget, call for referendum. And the Taxpayers of Clinton, CT where it was reported on June 20th that Residents went to the polls for a fourth time to vote on a town budget which ultimately passed.

July 4, 2018

From: The Federation of Connecticut Taxpayers

Contact: Susan Kniep, President

Website: http://ctact.org/

Email: fctopresident@aol.com

Telephone: 860-841-8032

Within the past 48 hours we learned that

40,000 unionized state employees received bonuses of $2,000 or more

as reported in the Hartford Courant article captioned

State Employees To Receive Bonuses Soon As Part Of Agreement Between Unions, Malloy

Therein, Christopher Keating reports The state will be paying nearly $80 million as part of the budget for the new fiscal year that started on Sunday, and the bonuses will be released in paychecks on July 19. For employees at the highest step of the pay scale, the one-time bonuses could reach $2,850. Republicans voted unanimously against the deal last year, but it was approved 78-72 in the state House of Representatives and by Lt. Gov. Nancy Wymans tie-breaking vote in the state Senate. Continue reading at http://www.courant.com/politics/hc-pol-sebac-bonuses-2000-story.html

Recognizing that Connecticut taxes are driven by public sector union contracts

on both a state and local level, with approximately 75% to 80% of municipal budgets dedicated to personnel related expenses to includes wages, pensions and healthcare benefits, it is a relief to many that as

Recently, reported by the New York Times

Supreme Court Ruling Delivers a Sharp Blow to Labor Unions

The ultimate question is:

Will the Janus Supreme Court ruling be the death knell to

Connecticut and Municipal Unions and an Ultimate Relief to Taxpayers?

Also, Within the past few hours we have learned that COMPTROLLER LEMBO PROJECTS $594.5-MILLION DEFICIT; SAYS WAGES CONTINUE TO LAG BEHIND JOB GROWTH In his economic summary, Lembo said that while the private sector has fully recovered the number of jobs lost to the recession (unlike the public sector), wage growth has failed to keep pace. Several concerning factors have coincided with shrinking wages, as recently reported by The New York Times, including less competition across markets, a dramatic decline in unionization (particularly in the private sector), and other long-term implications.Continue reading at https://www.osc.ct.gov/public/news/releases/20180702.html. Also, CLICK TO VIEW ECONOMIC INDICATORS

And on June 11, 2018, we learned from CTMirror.org Report: State pension costs still could reach unaffordable levels.Therein, Keith M. Phaneuf wrote: In a report titled Assessing the Risk of Fiscal Distress for Public Pensions: State Stress Test Analysis, the researchers analyzed public-sector pension programs in 10 states, and their ability to remain solvent and unaffordable particularly in the next recession. Surging retirement benefit costs represent one of the fastest-growing major expenses within Connecticuts budget a problem that stems from more than seven decades of inadequate state savings. Pension programs for state employees and municipal school teachers, collectively, hold assets equal to just 41 percent of their long-term obligations. Continue reading at https://ctmirror.org/2018/06/11/pew-report-state-pension-costs-still-reach-unaffordable-levels/

And remember that deal our State officials put together encumbering our money now and in the future as headlines read Under New Deal, State Will Pay Off Hartfords Debt. Yep? That one!

Well, as the Courant noted in March, 2018 The state has agreed to pay off Hartfords general obligation debt about $550 million over the next two decades or so as part of the bailout promised to the city under the most recent state budget. The deal between Hartford leaders and the state calls for Connecticut to pick up the citys annual debt payments, which are expected to top $56 million by 2021. http://www.courant.com/community/hartford/hc-news-hartford-debt-contract-20180322-story.html

So how much worse can it get? A whole lot! On June 20, 2018 the report captioned Connecticut City Pensions: The Affordability Gap (Stephen Eide / Manhattan Institute) was released. The following is an excerpt.Despite rate increases, property tax revenues have not been keeping up with pension costs in New Haven, Hartford, and Stamford. Hartfords property tax revenues, for example, grew by $2.7 million from FY08 to FY17 in real terms, while its pension costs grew by $16.7 million. Though annual costs for retiree health care have not risen as dramatically, they are still high, totaling $132 million for all five cities combined. This is a questionable expenditure, considering that the private sector has largely phased out health-care benefits for retired workers. While the states record of pension mismanagement is well documented, cities have been guilty of mismanagement as well. However, for the states five biggest cities, the question of affordability is more important than mismanagemen. This report should be read in its entirety at https://www.manhattan-institute.org/html/connecticut-city-pensions-affordability-bridgeport-new-haven-hartford-11310.html

And congrats to Susan Bigelow for her excellent OP-ED captioned Inept to the Bitter End as it appeared in CT News Junkie. Therein, Susan notes The General Assembly gathered this week to try to override some of Gov. Dannel P. Malloys seven vetoes, including a popular bill that would have prohibited the governor from unilaterally cutting education cost sharing grants to towns. That bill, HB-5171, was passed with the necessary two-thirds in the House, and was looking good for the Senate because theyd passed it unanimously the first time around. Easy, right? Of course not. They failed, and all of the governors vetoes stood. Continue reading at https://www.ctnewsjunkie.com/archives/entry/20180629_dc_news_junkie_op-ed_inept_to_the_bitter_end/ Read more from Susan Bigelow

And as disgruntled as some taxpayers are with State Government, the State Ethics Commission is weighing in as well. Recently, the Hartford Courant wrote: Top Ethics Officials Rip Edsall Law As Example Of Why State Government Not Trusted

Therein, Dave Altimari wrote Angry at what its chairman called stealth legislation, the state ethics commission held an emergency meeting Tuesday to discuss what legal recourse it might have after learning that top legislators quietly added an amendment to a bill that appears to ensure that UConn football coach Randy Edsalls son can remain on his fathers staff. This stealth legislation is one reason Connecticut residents dont trust state government, chairwoman Dena M. Castricone said. Good law should be done publicly and in full sunlight, and it should provide everyone with the opportunity to participate in the democratic process. Continue reading at http://www.courant.com/news/connecticut/hc-news-uconn-ethics-edsalls-son-20180626-story.html

As Governor Malloys term of office comes to a close, it is interesting to reflect on the May 16, 2011 article by Mark Pazniokas of CTMirror.org captioned Labor deal in hand, Malloy serves up red meat at the JJB With a tentative labor concession deal in hand, Gov. Dannel P. Malloy delivered his first red meat speech as governor Monday night, proclaiming himself a proud son of organized labor and defender of a social safety net woven by generations of Democrats dating to FDR.Let me say this as clearly as I can I believe in the union movement and the right to organize and to bargain collectively, Malloy told an audience of more than 1,200 on the Democratic Partys biggest night, the annual Jefferson Jackson Bailey Dinner in Hartford.

And the self proclaimed Son of Organized Labor, Governor Malloy has been true to this word. He has worn his devotion to the State Employees Unions on his sleeve.

However, as unions gained under Malloy, taxpayers lost and continue to lose as local and state taxes continue to escalate. The States debt has grown to $80 Billion Dollars.

And six years later, on August 7, 2017, we learned just how loyal Malloy has been to the unions as Gail Lavielle - 143rd General Assembly District State Representative provided insight into the States current, lucrative union deal as we learned The biggest concessions in state union agreement came from taxpayers.

State Rep Lavielle wrote: Among the union concessions: a two-year wage freeze, increased contributions to pensions and healthcare plans, and three furlough days, and for new hires, introduction of a hybrid defined benefit/defined contribution pension plan. The taxpayer concessions: no layoffs for four years until July 2021; a one-time bonus payment in 2020 for each employee; guaranteed 3.5 percent raises and step increases in both 2021 and 2022; and an extension of the current pension and healthcare benefits contract from 2022 until 2027, locking in for ten years benefits that are still among the most, if not the most, expensive in the country.

What do these benefits include? A defined-benefit pension plan, something most private sector employees have not seen in decades. Inclusion of overtime in annual salary for calculating pensions. Longevity bonuses. Employee contributions to pension plans that have until now ranged from 0 to 2 percent, and will still be well below those required for Connecticut teachers and municipal workers. Health insurance contributions and co-pays lower even than those paid by federal employees. Higher education tuition for family members. Paid time on the clock for union officials to spend doing union work.

The contract extension prevents future legislators and governors from reducing the costs of public sector benefits, which remain among the highest in the country, for 10 years. The no-layoff provision and related conditions limit the states ability to cut government costs by consolidating departments or shifting services to the private sector.The $1.5 billion in near-term savings, most of which are one-shot, leaves a $3.6 billion deficit on the table, to be closed by tax increases and service reductions. Continue reading at https://ctviewpoints.org/2017/08/07/opinion-gail-lavielle/

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Illinois Governor Bruce Rauner in a Bloomberg Television interview from Washington offered the best perspective on Janus

This is an historic win for taxpayers

Taxpayers for too long have suffered from the excessive, unfair costs of the unfair, conflicted relationship between government union leaders and the politicians who they helped elect as well as negotiate with.

Thank you Governor Rauner! We know that all too well in Connecticut!

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With deep appreciation to Jon Lender of the Hartford Courant,

who, through the years, has provided great insight into the operations of our State government,

we suggest a review of the following:

Articles by Jon Lender - Muck Rack

Jons latest provides insight into the waste of our tax dollars

Jon Lender:States Fuel Cell Bus Fleet Fades Away, After Initial Hopes of Pollution-Free Transit

Jon Lender Contact Reporterjlender@courant.com

Excerpt:Costing $2 million apiece four or five times the price of a conventional bus they were paid for by the Federal Transit Administration under what was called a demonstration project to push fuel cell technology for transit buses to the next level of commercialization, according to a 2012 FTA report.In other words, the objective was to see if the zero-pollution buses were financially viable alternatives to conventional diesel and diesel hybrid buses already in use. Well, it did not work out.Continue reading at http://www.courant.com/politics/government-watch/hc-pol-lender-fuel-cell-fizzle-20180621-story.html