FREEZE ALL PUBLIC EMPLOYEE SALARIES!
TAX TALK JANUARY 3, 2010
The following is intended to provide readers with insight into the fiscal condition of our nation, state and towns. Accordingly, The Federation calls upon all Connecticut Government Officials to FREEZE ALL PUBLIC EMPLOYEE SALARIES!
From the Federation:
There is Blood on Main Street as red ink flows through the budgets of states, cities and towns across the nation.
Connecticut is facing an anticipated budget deficit between $337 million and $550 million.
Many employed Americans are grateful to have a job. Therefore, it is very disappointing to read of the reluctance of the 50,000 unionized state employees to discuss further labor concessions as noted within the Journal Inquirer article captioned Labor talks hit the rough before they even start. http://ctact.org/default.asp?callcontent=yes&filename=Labor.htm%20%20%20&location=State_-_Budget&buttonname=State%20-%20Budget California is anticipating a $21 billion shortfall through June 2011. Higher deficits are anticipated by states in future years as evidenced by the following: http://www.cbpp.org/cms/index.cfm?fa=view&id=711 and Governor Daniels of Indiana, whose state is witnessing a dramatic drop in tax revenue, recently wrote in the Wall Street Journal, that states are facing a near-permanent reduction in state tax revenues that will require a reduction in the size and scope of state governments.
Governor Granholm of Michigan, reduced the state’s budget 10% last year and is suggesting another 20% cut with a reduction in state departments from 18 to 8. Rhode Island Governor Carcieri intends to reduce municipal aid by $125 million while eliminating cost of living increases for retired teachers and state workers. Governor Paterson of New York plans a 10% cut in aid to school districts because the $2.7 billion cut by the legislature to reduce the state’s deficit was not enough. The $26 billion budget for Illinois is facing a $12 billion shortfall.
Similar calls for reducing state governments are being made throughout the country.
Scott Pattison, executive director of the National Association of State Budget Officers recently stated - The little budget tricks that states have tended to rely on in order to keep the electorate happy have mostly run their course. They've done the gimmicky things like moving a pay day across the fiscal-year date. They've drained the reserves from several funds. So if revenue doesn't pick up, the tools in the toolbox are pretty limited.
The PEW Report provides greater insight into financial instability of states throughout the country in the following report : http://www.stateline.org/live/details/story?contentId=436547
Nine of 10 finance officers polled by the National League of Cities in September said it would be difficult to meet their fiscal needs in 2010, the worst outlook in 24 years.
In Connecticut , the State’s bonded debt is the highest in the nation and property owners and businesses pay the second highest property taxes. Approximately 80% to 90% of local budgets within the 169 towns are dedicated to Town and Board of Ed salaries, pensions and healthcare. Some pensions are $100,000 or greater. Healthcare benefits for the public employee and spouse far exceed the benefits of the private sector and are extended throughout retirement.
On a local level taxpayers pay approximately 80% of healthcare costs for public employees, while many taxpayers have no affordable healthcare. On a state level, $5 Billion in the State budget is budgeted for healthcare.
It is estimated that nationally, 27 million Americans are unemployed or underemployed. Connecticut ’s unemployment rate is at 8.2%. Since the onset of the current recession, Connecticut has lost 85,400 jobs which is expected to grow to more than 100,000. The 50% rise in Connecticut unemployment has resulted in insolvency of Connecticut’s unemployment insurance fund, requiring the state to borrow nearly $1 billion over the next two years
As such, the Federation is asking all State of Connecticut and Municipal Leaders to Impose a Wage Freeze for all Public Employees for 2010-2011 and 2011-2012. We encourage all taxpayers and taxpayer groups to bring this message to their local municipal leaders and state representatives, while Promoting reforms to State Binding Arbitration Laws. We will do the same. Please contact us with the status of your success or if you need assistance in helping to control the cost of government in your town or state. You can reach the Federation at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .