The Senate closed the book Tuesday on the next state budget, approving a final package of adjustments that plugged a $400 million hole, canceled a controversial utility bill surcharge, and effectively granted advance approval to a $1.6 billion union concession deal.
The budget policy bill, which now heads to Gov. Dannel P. Malloy, also would repeal a cabaret tax, restructure fare increases on the Metro-North commuter rail line, and implements a host of tax changes.
The governor, who negotiated the bill with his fellow Democrats in the legislative majority, is expected to sign the measure, which cleared the Senate in a 20-16 vote largely along party lines.
The new budget for the coming biennium now totals $40.54 billion, including a $20.14 billion component for the fiscal year that begins July 1 and $20.4 billion for 2012-13.
The built-in deficit for the first year, which was projected as high as $3.67 billion shortly before Malloy took office in January, was closed with $1.52 billion in new state taxes and fees, $800 million in revenue growth, and spending that totals $1.36 billion less than the level originally projected to maintain current services.
Next year's bottom line, though well below initial projections, is $860 million above this year's spending, an increase of almost 4.5 percent, according to a fiscal note from legislative analysts. And that number could jump higher if the state's more than 45,000 unionized employees reject the tentative concession deal.
Though Malloy campaigned on a pledge to solve the deficit with "shared sacrifice," that principle has become skewed through a plan that used new revenues to close about two-thirds of the original deficit, said Sen. Robert J. Kane of Watertown, who warned it won't help Connecticut's economy to recover.
"My constituents are telling me: 'Cut spending, don't raise taxes,'" said Kane, ranking GOP senator on the Appropriations Committee. "This proposal is far from perfect--far from good actually, because it's not real. It's all based on assumptions and hypotheticals and sooner or later this is going to come to light."
But Senate Majority Leader Martin M. Looney, D-New Haven, said, "This was the responsible approach. If we would have relied more on cuts we wouldn't have been able to avoid municipal aid [reductions], and we would have ended up placing more burdens on property taxpayers."
The last in a series of omnibus policy bills needed to implement the new biennial budget, the bill adopted Tuesday closed a $400 million hole that developed after the tentative concession deal was announced last month.
Malloy and the legislature originally built $2 billion in biennial savings tied to that deal into the budget, but had to amend it after the administration announced the tentative package was worth $1.6 billion -- $700 million in 2011-12 and $900 million in 2012-13.
That gap was filled without tax hikes and relatively few spending cuts. Instead, the governor the legislature opted to scale back large surpluses already built into two annual spending plans, which still are designed to run in the black by $89 million next year and $555 million in 2012-13.
If labor unions, which are expected to finish their ratification votes before late June, ultimately approve the concessions, the legislature might not come back into special session to ratify the agreement.
That's because the budget policy bill includes language stating that if the unions approve the agreement and if no session is scheduled within five days or by June 30--whichever comes first--then the labor deal is deemed to have legislative ratification as well.
Sen. L. Scott Frantz, R-Greenwich, noted that Malloy proposed back in February ending this longstanding legislative practice of allowing contract awards and changes to be ratified by default. "Now we go back to the same old business-as-usual approach," he said.
A GOP amendment to delay any legislative action until after any union ratification was rejected in a party line vote.
Senate Minority Leader John P. McKinney, R-Fairfield, said Democratic legislators were shirking their responsibility by trying to avoid a ratification vote later this month, yet predicted they still would complain about the high cost of state employee union contracts once back in their home districts. "If I had a dollar for every time I heard that I could solve this budget," he said.
"We're not saying we're not going to call ourselves in" for a special session, Sen. Toni R. Harp, D-New Haven, co-chairwoman of the Appropriations Committee, said, adding that if the legislature opts not to vote on the union deal later this summer, that wouldn't be unusual. "That is not (always) what is done in the state of Connecticut," she said. "We approve things a lot by not taking them up."
Frantz and other Republicans also questioned the pre-ratification clause given Monday's disclosure that the legislature's nonpartisan Office of Fiscal Analysis reported it could not vouch for more than $1 billion of the $1.6 billion in assumed labor deal savings because of unanswered questions or insufficient data supplied by the Malloy administration.
The budget policy bill also cancels a controversial surcharge on residential and business utility bills of Connecticut Light & Power Co. customers starting July 1, but doesn't return about $40 million collected from consumers to date.
That's because a combination of surging tax revenues and some unanticipated savings have made $647 million in borrowing originally planned to support this year's budget no longer necessary, according to Malloy and Comptroller Kevin P. Lembo.
The $40 million raised since January came from a surcharge of 0.379 cents per kilowatt hour--or $2.65 per month for the typical residential customer using 700 kilowatt hours per month.
A second surcharge, this time equal to 0.47 cents per kilowatt hour - or $3.29 per month for the typical residential customer--was scheduled to replace the current surcharge in July.
Other components of the bill would:
Totally irresponsible when they know to a near certainty that what they are asking employees for will not happen. How is it that we vote these people in? I've only voted for 2 or 3 incumbents in the past 8-10 years but they keep getting in.
Very disappointing - all of them.
"nd effectively granted advance approval to a $1.6 billion union concession deal." - Did u now that the union votes are collected in shoe boxes with no third party counting them so the union leaders can say whatever they want. The vote is rigged and even though they collect about $400 a year from eachof the 46,000 state employees they won't spend the money to get ann outside party to count the votes. Yet the heads of each union make over 100K and this is more about keeping their union dues then employee concessions..
Votenotoconcessions. com and join us also
Read MoreIf sheep is correct that the votes are being collected in a shoe box then the deal is approved. In 2 years dems will raise taxes again and be looking for concessions. Remember the legislature is going back to January with the income tax increase. They are getting 30 months of income tax in this 2 year budget. That money will not be there next budget. They kicked the can down the road again.
yes, the cardboard box with a sign that read "Ballot" on it was in place at one of the voting sites yesterday. when asked how the union ensures that only one vote per person is cast they could not answer. we can go to any site that voting occurs and cast votes. there is no way of checking the accuracy of the votes. no oversight. this vote is bogus. malloy knows it will go through because they are not even going to tally the votes.
Please stop the lies and misleading information. I don't know what State Employee Unions "larrye2011" or "state_employee" are in, or if they really are State Employees at all, but I was unaware any bargainning units started voting yet on concessions. I thought voting was next week. My union, A&R votes June 16-22. Also many Unions are using electronic voting (internet or telephone voting), which covers the security issues about possible multiple votes cast by an individual. Here is a link to the A&R Website explaining their process. http://www.andr.org/New_Folder/News/Vote0611.doc
I am sure other unions are following
Read MoreThis will go down in history as a major crossroad in public sector employment. A time when we acted out of fear or one when public employees stood their collective ground.
This budget that is based on an assumption state employees will buckle under threats. Its completely irresponsible.
State employees should not ratify this deal. They should make the Administration and Legislature prepare a fiscally responsible budget within the constitutional framework of the state.
The time has come to stop talking and vote.
Another day, more threats from the Governor. Now he will lay off 7500 if the vote doesn't go his way. State employees should take note: Open enrollment for health care is now delayed until Oct. 1. That's so Sustinet can be implemented and all those who refuse to sign the Health Enhancement Plan agreement can have the extra $100 month deducted from their paycheck. I will sign the agreement only after all the non- working people in this state who receive free health care paid for with my tax dollars sign the agreement and lose their coverage
Read MoreWell said Alynn. These same people also get subsidized housing, food stamps and $.
How come no media has asked the state employees about this plan?? Seem the media is pretty one sided?where is the investigation ?? Chart fan Livingston 41 million dollars to this foundation fr anthem ?why would he be on this not but two years after the 1997agreement he fought for workers rights?
There was voting in boxes the 1199 healthcare union is voting June 6 thru June 17
Serious conflicts with Dan , bob rinker, bob kryz,and sal Luciano all fighting for universal health care without rank and file knowledge. Since this is our livyhood you think you might
Read MoreWell pieces of the puzzles ate starting to add up folks
The chief negotiator for state employees is on the board of the anthem foundation Dan Livingston
Josephine has been posting all over the place; evidence suggests to me that she's a plant for interests who oppose any changes to the current horrific health service industry in the U.S. I suspect that some of the repeat posters all over the internet who have been bashing the concession plan are actually puppets for a bigger, national movement to destroy collective bargaining.
I'm a state worker and a union member in Tier 2, and I will vote yes. In my opinion, all reasonable unionized state workers will vote yes on this concession agreement. I am
Read MoreSorry to disappoint advocate I am not a plant you can make this up look it up yourselves your the plant
getting nervous advocate that the truth I'd coming out you can only lie so long before the truth comes out
I would never tell someone to vote for a an that is set
Seriously lacking anything in writing! Apparently ypu would and that shoe who you are
Look at website for chart and CEO and read on the sustinet plan I certainly have no reason to lie do you advocate nice try advocate
An advocate for....I cannot agree more. With this deal I know my fate....and the fate of my co-workers. I am not comfortable with the "unknown" and I will handle this situation as I do all others, with my eyes wide open and my head screwed on tightly. This deal is a no-brainer.
The battle is over, as far as I am concerned, it is a draw.
One more thing mr. Advocate we have a collective bargaining agreement until 2017 that can't be touched but you sure are fighting hard to break it and no I am not posting all over but you sure are!
Did you really think censoring us on the sebac site and the media we wouldn't find out the truth about our own union leaders disgusting and shameless you are!
Your fighting to hard and that says it stinks right there!
I can't make this stuff up is Dan Livingston on the board of the anthem foundation or not mr .advocate?
Read MoreScapegoat that Advocate is not a state employee be is using the Same threatening tactics
unknown seriously are you kidding if you can't honor an agreement that has already been negotiating until 2017 what makes you think honor this one maybe you should re read agreement did you miss the part of restructuring ? Unknown is this agreement
Come people we were just here year have ago and look at record how many times we have
Been here!
What happens in a year have from Now when they spend all the money again?
the union leaders
Read MoreYes we know Atty. Livingston is on that board. Below is his bio. he's an advocate for healthcare benefits for all. That does not mean he wants SEBAC on these other plans though. read his bio, as a State Union member, I am happy he's in our corner.
Dan Livingston is an attorney who has been a labor and progressive activist in three states -- New York, New Jersey, and Connecticut. A life-time member of the United Auto Workers Union, Dan is the product of the marriage of a Union President, and a Social Worker, who
Read MoreMr advocate it is not okay to threaten people with the other states and how is that all working out for mr Wisconsin gee I think that that law was thrown out
Union leaders job to fight for workers and they did deal is until 2017 gee and that beh
Begs the question why you would go back on your own deal Dan Livingston come scapegoat if you can honor deals you made yourself my god doesn't that say it all
Please pay attention there is something going here that is not right get past yourself and pay attention
Read MoreSmells like there's a 1.6M hole in the budget now.
Looks like they acted prematurely and will have to come back in Special Session to "Plug" the hole...
Wow, I hardly believe you are a 26 year Tier II employee. If you were you would know that in all the layoffs during those 26 years that EVERY layed off employee came back within a few months.
There is also no way to guarantee that you would not be layed off since Malloy is planning to close entire agencies.
From what we've seen of this package, it reeks, it's a bad deal especially for those of us who really are longtime Tier II's.
Anyone who would vote yes for this deal is
Read MoreI think the overwrought, barely coherent, and semi-literate multiple-posts of some of the commenters (Josephine is a classic example) reveal probably more than what those folks want revealed. They are clearly incapable of thinking logically; they can't seem to see the big picture.
Things change. The economy plummeted due to the shenanigans of Wall Street and the banksters and the hedge fund money usurers.
We are all suffering due to this.
Private sector employees have been laid off; all the middle-aged folk you see working at cash registers in big box stores and supermarkets were probably earning
Read MoreYippee Dan then why would you not honor the agreement until 2017?obviously we have a healthcare plan ?where is the written Healy care plan and pension plan why did not want a universal health care plan but you didn't ask us did you why would the inion leader sneak this in behind our backs ?
You have an explanation for being on the board of anthem foundation and where the 41miion dollars went?
The Universal health Plan is not for State employees. Because Atty Livingston worked on that issue for another client and teh SEBAC agreement for the Unions does no way mean Sustinet, etc. is to be offered to State employees. Anyone who suggests otherwise is being ignorant or just trying to stir up state employees.
An advocate
Pound Sand Advocate.
The state employees have given and given back please feel free to check out how many times we have been here.
The issue is the threatening and bullying by both the union leaders and the Governors office. It is also the conflict of interest by our union leaders.
Dan Livingston is on the Board of Directors for CHART which is universal health care. Did they pay a consultant to report on Sustinet?? Was Sal on the Board with Nancy Wyman and Keving Lembo on Sustinet?? Is Dan Livingston a Board member for
Read Moreso the 242 pages that I read about Sustinet the one that listed Sal Luciano and Nancy Wyman were for someone else?? Who would that be the client??
So you are saying that sustinet aka universal health, value health, enhancement health, affordable health, and partnership pooling plan are not the same plan that is being given to state employees because when I read all 242 packages it sure had the same dates for implementation and the same diseases and pretty much everything said in the 3 pages you gave us sure sounded exactly the same ??
Its not "a" concession package that state employees are resistant to, its "this" concession package.
The gross inequities in pension changes, the healthcare facade, and veil of secrecy (do union leaders work for the Gov or employees?) make this plan unsupportable.
State employees have always been part of the solution, time and time again. Anyone who infers otherwise is ignorant of the states history.
Go back and negotiate a concessions package designed to fill the two year budget shortfall (furloughs, wage freezes, co-pays, etc). And this time please consult with membership so you can present something that can be supported.
Read More@Hapkido: Let's assume the Governor goes back on his desire to address long term fiscal issues and would be willing to just look at the budget shortfall. Do you really think negotiators could come up with $700 million in the first year and $900 million in the second just with furloughs, wage freezes, copays, and etc (whatever that includes)? I think that even copays and premium share increases would require opening up the 2017 agreement. As much as it may not be pretty, having increased taxes, if the agreement goes down, I am not confident that I could accurately predict
Read MoreMalloy and the people running the union are looking to get bigger jobs in Washington. Malloy does not care about the union. You elected him that is all he wanted from you. He is a politician. Did you really think he was telling the truth? People the dems finally got what they have wanted for years. Control of everything. All of them will now get jobs that give them huge pensions. The big woosh you will hear the next couple of years is the pension plan being deflated.
We the people will get in return higher income,
Read MoreMichael that is what we are asking this was not done on good faith ?who are you Michael?
Michael I don't know who you are but we have given and given but we are wiilling to help but are health care should not be touched and it has been open several times copays etc the unions never talked to us and siince this impacts our life you would think You would talk to us this was done in secrecy and we were lied too.
Governor has managed to put others things through pretty fast sometimes it behooves one to take a step back when something was done in bad faith . The unions had no right to completely change the healthcare and not talk to rank and file. This health plan is missing alot of pages and no one should be asked to vote on this . It is wrong and anyone with any sense would note vote for something that is not written.
Josephine You need to relax. It is a done deal. You need to except it.You may be right but there is nothing you can do.
Yes Michael I think Employees would do that if you left sebac alone regarding health care and pensions we have offered to Give money each pay period to fund the funds that are unfunded. Leave these funds alone for retirement not to balance budget
Michael we are the members and we are telling you what the rank and file are upset at.
The union leaders never consulted us and in fact lied it is time to make this right we are willing to help. We don't want this package the sebac agreement needs to be honored.
U think so Larry? Do you think it is done Larry ? What do you think Is going to happen?
Josephine it is over.. You keep saying the same things over and over. The union leaders sold you out. Except it.
Don't you think Larry that it is time for people to take a stand and say enough is enough This is a democracy . We elected people to work for the people not themselves and if they cant do that then we should be able to remove them. There needs to be oversight what went on here is not right
Well Larry maybe but it's never over until it's over and now the union rank and file need to remove them
Josephine it is to late Union leaders will be given jobs in washington They sold you down the river. All they had to do was say one word NO But they were bought.
larrye2011: I have to respectfully disagree; I do not think the Union leaders sold anyone down the river. I may be wrong, but this is how I see it.
The state failed in its obligations to fully fund the pensions and retiree health care (as you point out all the time), but there is no way to go back into the past to fix this. Given the laws on these kinds of benefits, you cannot take them away because the state cannot go bankrupt. So, once the economy rebounds, there is going to have to be a serious plan to
Read MoreUnfortunately Michael they did sell us down the river the evidence is there
In 2 years we will be going through this again. The tax increases will hurt middle class,elderly and small business. Expect business closing,more people losing their homes and layoff in private sector. Pension and medical liabilities will continue to grow. Young people should move.Older people should move if they can. Only time will tell.
Shop in June before the sales tax hits clothing under $50. Contribute more to your 401k to reduce your taxable income. Be smarter with your money. You will have less of it. Good luck to everyone
Unfortunately with all her posts Josephine's main point tends to get lost....That it isn't over until the final vote is counted.
She's right about this. This isn't a Done Deal unless the election process is rigged. We have to trust our leaders enough to hope this won't happen and that the voting tally is done honestly.
If it is, they will never get the 80% that will be needed to pass this...Get ready for Plan C, D, E or whatever plan he wants to call it!!!
WhiskyTangoFoxtrot: You are right this is not a done deal until the votes. There is some misperception and misreporting by the media, however, on the 80% number. From my understanding of the rule, you do not need 80% of the employees to vote yes; that would be nearly impossible no matter what the agreement was. The rule is that the Unions that vote yes (by majority vote) must represent at least 80% of the unionized state employees. As I read it, then, the only way that the 80% number means anything is if AFSCME votes no because it represents so
Read More"If the state does not change its demographic trajectory, it faces a bleak future."
A Connecticut Center for Economic Analysis report, "Recovery Stirring, But Will Connecticut be Too Old to Compete?"
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