Prospects unclear for town aid, social services if labor deal fails

June 22, 2011

By Keith M. Phaneuf and Arielle Levin Becker

For the past five months, Gov. Dannel P. Malloy has put a scare in municipal governments and social service providers, warning they could well face deep cuts in aid if unionized state employees refuse concessions.

But while those threats may have been effective at mobilizing advocates for these groups to press state workers for givebacks, it remained unclear Wednesday how severely either area might be cut as administration officials discussed what their options might be following what looks like the inevitable defeat of the concession plan.

Municipal aid and social services programs are large targets in the state budget--along with personnel. Layoffs are certain of concessions fail, Malloy adviser Roy Occhiogrosso, said Wednesday, and there will be "significant" reductions in social services spending. And cuts in grants to cities and towns?

"Everything is on the table," he said, while quickly adding, "there are obvious items [Malloy] would very much like to take off the table."

The governor said repeatedly during last fall's campaign that he wanted to close a record-setting state deficit without passing the burden onto municipal property taxpayers or shredding the "safety net" that protects the poor and disabled.

But if the concessions are rejected, the administration will have to fill huge gaps--$700 million in 2011-12 and $901 million in 2012-13--in the budget. And Malloy has pledged to do that without adding to $1.5 billion in tax increases.

"It's awfully difficult to take big pots of money off the table," Occhiogrosso added.

Nonetheless, the Democratic governor could run into some political obstacles from within his own party if he tries to cut too deeply in social services or town aid.

House Majority Leader J. Brendan Sharkey, D-Hamden, conceded Wednesday that "it would be very difficult for my caucus to consider any cuts to municipal aid. It would have to be the absolute last resort."

Majority Democrats in both chambers rejected Malloy's request during the regular 2011 session for expanded budgetary authority that would have included the power to make emergency reductions in town aid without legislative approval.

Fewer than 10 of the state's 169 cities and towns have yet to adopt municipal budgets for the next fiscal year. And the executive director of the Connecticut Conference of Municipalities, James Finley, said most communities--particularly poorer urban centers--assumed state aid would not be cut when they approved those plans.

Keeping state aid flat "saved a lot of municipal budgets" from hefty property tax hikes or layoffs, Finley said, adding that state funding for town services has been on the decline.

If Malloy must recommend new budget adjustments they will include "significant" social service cuts that will be felt by some of the most vulnerable state residents, Occhiogrosso said Wednesday.

"They're not cuts that [Malloy] would want to do," Occhiogrosso said, adding that the governor has asked, "'What's the alternative?'"

Sen. Toni N. Harp, D-New Haven, co-chairwoman of the Appropriations Committee, said the governor could address much of the gap with his existing budget authority, which allows him unilaterally to reduce many non-municipal aid accounts by up to 5 percent.

Among social service programs, Harp said, Medicaid programs are likely to be at less risk because Medicaid is an entitlement and the state must meet certain obligations to receive the federal funding they bring in. But the New Haven lawmaker added that small social service programs and nonprofit private providers are likely to be the most in jeopardy.

"I'm really hoping that he finds other ways to deal with this, because people here are really hurting and are afraid," she said, adding she is committed to trying to preserve safety net programs that are most needed during difficult economic times.

Malloy's original budget proposal included several health and social service cuts that legislators later restored. In a list of "Plan B" budget options offered last month as a fallback in case administration and union negotiators did not reach an agreement, Benjamin Barnes, Malloy's budget director, again suggested cutting them.

Those cuts include:

  • More than $3.5 million for community health centers
  • $299,250 a year for fetal and infant mortality review
  • $320,260 for AIDS services in the upcoming fiscal year and $470,260 in the following fiscal year.

Malloy's original budget also would have required some Medicaid recipients to pay cost-sharing for medical services and would have reduced food assistance for recent immigrants ineligible for food stamps. Legislators rejected those changes, but they were included in the "Plan B" options.

And while nursing homes traditionally have shared some of the added federal revenues Connecticut receives through a provider tax system launched in 2006, the "Plan B" options included putting all additional federal reimbursement in the state's coffers.

Sharkey said he believes most House Democrats agree with Malloy that the $1.5 billion in new state taxes adopted for the coming fiscal year is sufficient. "It's a hard enough pill for our members to swallow," he said.

But while that would leave savings from layoffs to do most of the budget-balancing work absent a concession deal, and there were signs Wednesday that some of labor's strongest allies would accept that rather than cuts to municipal aid or social services.

Sen. Edith Prague, D-Columbia, said she was still holding out hope that the deal would be ratified and said she found it hard to believe state employees would turn it down.

"I'm beside myself thinking that they could turn down this deal," said Prague, the co-chairwoman of the Labor and Public Employees Committee. "If they do, they'll never get another thing out of me."

Still, other Democrats noted there are other options to consider.

"If we are back to square one, then square one includes taking a cold hard look at how much money we can expect to come in next year," Rep. Peter Tercyak, D-New Britain, said. "And if our projections have been a little conservative, if revenue growth is there, we should acknowledge that first before we do anything else."

The Malloy administration reported Tuesday that General Fund revenues for this fiscal year shot up $53.4 million in the past month alone, with $40 million of that growth tied to the income tax.

Minority Republican lawmakers charged that Malloy and his allies built excessively conservative revenue assumptions into the new budget.

With the latest growth factored in, this year's General Fund tax revenues are projected at $11.96 billion, $1.04 billion over the level originally budgeted for 2010-11, while next year's growth--before new revenue from tax hikes is factored in--would be just $286 million, or 2.4 percent.

And the $20.14 billion budget for next fiscal year already was built to run $89 million in the black, even without any further revenue adjustments.

This year's budget also is on pace to finish $85.5 million in surplus. But that is one-time money and Occhiogrosso warned using it to patch any holes in the state budget was unlikely.

"Technically it is on the table but it is not something [Malloy] is inclined to do," Occhiogrosso said.

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Comments

I think Prague GOT more over

I think Prague GOT more over the years from Labor than she gave to Labor.

Where in the heck does she get off making a comment like that???????

What is she, another BULLY like Dan?

The savings in this and next year were simply smoke and mirrors all along anyway. No one could find it except him (his people,) SECRAP and the hidden agenda union leaders.

Prague needs to go. She's a

Prague needs to go. She's a loose cannon and not helpful to any side in precarious negotiations. What's the saying about loose lips? Both Malloy and Prague suffer from this syndrome.

So anyway, I have some suggestions that don't include shredding the safety net or municipal aid.

Kill the ridiculous Nb to Htfd bus line.
Do not finish Rt. 11
Delay UConn Health Ctr expansion
Eliminate the special commissions - women, pan-asian, etc., etc.,

Note to union leaders: Next time include your membership when asking for concessions. This is 2011

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If I were one of Sen. Edith

If I were one of Sen. Edith Prague's constituents, you beter believe I would be pushing real hard to get rid of her in the next elections. She has no respect and should learn that if that is what the members wanted then we should look at another approach and not bully them.

Dear Edith, Obviously you

Dear Edith,

Obviously you have not been paying attention. If you were you would know why we voted the deal down. Let me sum it up for you: Value Based Health Care, deception by union leaders, Malloy and Wyman, a proposal that results in a 1 1/2 pay increase over 4 years, and bullying.

And don't worry Edith, dear, you won't be getting a thing out of us either. Isn't it time that you retire? Or at least take your Aricept.

Senator Prague is no longer

Senator Prague is no longer an appropriate choice to be co-chair of the Labor and Public Employee Committee. She needs to step down from that leadership role.

lets rally to get prague out

lets rally to get prague out of office. if anyone of u watched the phony susan lucci performance on hour 1 of the secrap video where she showed up at the state armory. what a liar she is cause we didint vote her way now she threatns to neva again give us anything... well lets vote her the hell out

Edith Prague step down from

Edith Prague step down from your role as an ignorant senator making that kind of comment to state workers. What do we owe something to you? I'm sick of you politicians who can ride high in the sky and p*ss on the people who elect you to represent the people. Please send your apologies to state workers tom.

Sen. Prague MAY be a bit of a

Sen. Prague MAY be a bit of a loose cannon, but I think that there are going to be many state legislators who share the same sentiment if the concessions deal goes down. My gut instinct tells me that state employees are not likely to have many friends in the General Assembly.

@ctresident1 Add closing

@ctresident1

Add closing Southbury Training School to your list

Edith, You once again have

Edith,

You once again have put your foot in your mouth. Don't worry. We won't ask for a penny from you. But we will we vote you out.

Vote Edith Prague out of

Vote Edith Prague out of office! Malloy too!

Wow, how dare Prague... Vote

Wow, how dare Prague... Vote her out... She won't get a single vote from any state worker after that statement...

Senator Prague can be

Senator Prague can be intemperate and shoot from the hip. My guess is that is that she probably wishes she had said something different. However, I stated in another post earlier today that we are witnessing the beginning of the end of collective bargaining in Connecticut. The senator’s comments are an indication of the potential shift at the capitol that could very well lead to the reduction in bargaining rights for public employees. People have made several comments about Wisconsin over the past weeks. I think a better example would be Massachusetts where a Democratic

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Paul, Right now I think the

Paul, Right now I think the Democratic Legislature wont turn their back on the unions because here in CT that is to big of a part of what gets them elected. The issue they will have or better yet, Malloy will have is just like the article says, if he tries to take aid way from munies his own legislatures will need to prevent it because it will hurt their constituents and they will feel the backlash come election time. We all know these politicians are to power hungry to do anything that may cause them their

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The situation is making it

The situation is making it too tempting for *both* Democrats *and* Republicans in the legislature to turn to substantially increasing privatization of services. By doing that, the public gets their services, state employees get laid off in droves, and new - private - jobs get created that cost the taxpayer much less (at least in the short run). Add to that the possibility of eventually removing pensions and health insurance from collective bargaining, and you *may* have a collective bargaining disaster just waiting to happen.

This is a sad day for

This is a sad day for Connecticut.

Union leaders and the Malloy

Union leaders and the Malloy administration also would not rule out the possibility of a redo.

"If the majority approve the agreement, that does beg the question: What next?" said State Employee Bargaining Agent Coalition spokesman Matt O'Connor.

Malloy's senior adviser, Roy Occhiogrosso, said the administration will not renegotiate terms, but would consider some clarifications to the concessions package.

"Clarifying means you put a fine point in language ... that already exists," he said.

But Occhiogrosso added, "Why don't we get done with the first vote?"

.....and after the first vote......then take a 2nd vote.

I think things are

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Absolute Bombshell I just

Absolute Bombshell I just read.

This thing is not over.

I just read a direct quote from a high ranking Sebac union leader that states as follows:

"One union official Wednesday, who declined to be identified, argued it might be possible for leaders to hold a re-vote, which could even include a decision by labor leaders to re-write the rules outlining the passage threshold".

Did you get that last part about re-writing the rules for passage?

It ain't over. This thing is going to pass. I think it's great news.

This entire mess stinks more

This entire mess stinks more than a sewage plant on a hot summer day. The Democrats and Union leaders will do everything possible to make this happen. I wouldn't put anything past them. It's all about retaining power at the Capitol in Hartford plain and simple. They know their re-elections depend on union workers, minorities, and die in the wool FDR New Dealers.

If for some reason this package is defeated, (which they will not let) the budget might magically disappear or the entire balancing process will be on the backs of the private sector.

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Obviously Michael we never

Obviously Michael we never had any legislature friends.

Who do they think they are?? Lets get some shared sacrifice from them?? What has she given up and for that matter what did any of them give up?

Who exactly did and continues to make money problems by spend spend spend??

The state employees have done nothing to deserve any of this. WE dont do have anything to do with budgets. Always going after the little guy. Trying to make the like guy go to the poor house. It it time to vote people in for a term and

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Frankly, I do not know

Frankly, I do not know anything about Senator Prague, but I sure can tell a lot about her reaction, as well as your reaction to her.

First, she appears to be a longtime labor supporter. She is now disgusted and pissed off with you. Just imagine, if one of your strongest supporters wants nothing to do with you, what do the rest of the people in the state think about you.

Second, you all turned on her in an instant for not supporting your rapacious greed. You probably have double what most people doing

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Quite frankly Art, We dont

Quite frankly Art,

We dont want any of them. They all stink to high heaven. They are all rich and really dont know what is like to work.

I would like to throw them in a patrol car for a month. I would then like to put them to work at CVH for a month. Then I would like to throw them in a prison working for a month. I then would let them work in DCF for a month.

Then they might get it but probably not their arrogance is astounding.

In fact how about 45,000 employees not

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Perhaps this provides some

Perhaps this provides some insight into why our state is in deep trouble. I was thinking about the word "narcissism" as I was writing my prior comments. So I decided to look up some information on this trait and I took the following from Wikipedia.

Here is what the wiki offers as the "seven deadly sins of narcissism." We see many, if not all of these traits on display in those we elect to serve us. In reality, how can we ever expect good decision-making from a collection of individuals who are pathologically self-absorbed? We call it

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Give me a break! I really

Give me a break!

I really dispise all of the hyperbole coming from our state leadership - "we'll need to shred the social safety net," "lay-off 4,500," no, wait, "lay-off 7,500," yea, that's the ticket! I am waiting for someone to echo Dr. Venkmen from the movie "Ghostbusters." I can hear it now: "Without this agreement, there will be riots in the streets, dogs and cats - living together, mass hysteria!"

We state employees are well aware of what programs are producing results and which are not. The state has audit reports, legislative program reviews and other quantifiable information

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If the vote fails, I truly

If the vote fails, I truly hope that Gov Malloy balances the budget with layoffs rather than cut aid to municipalities. The state workers were given a choice as to whether to accept cuts or risk layoffs. Gov Malloy was very clear on this. If the state workers don't accept the cuts, then the layoffs should follow.

We have seen in other states what republican governors choose to do with their state workers - simply layoff without choice. And those states did not face the desperate financial situation that faced Gov Malloy when he was sworn

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afscme and seiu and other

afscme and seiu and other unions represent town and city union employees to. The union leaders made a calculation to let the state employees take a hit so their other unions would not. Aid to towns being cut will effect town and city union members. After the ggovernor asked for concessions he went on a massive spending spree which i compare to the neighbor we all have filing for bankruptcy one day, then the next driving sa loaded hummer home from the car lot. Not only is the guy with the hummer, having made bad fiscal decisions for a long

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@josephine: You ask what the

@josephine: You ask what the legislature gave up. Well, unless my information is completely incorrect (and maybe it is), but my best understanding is that the members of the General Assembly are part of the same retirement system as state employees.

So, if the deal had passed, anyone elected after 1985 would have had the same COLA minimum reduction to 2%, the same changes in regular retirement age, and the same new penalties on early retirement.

I am unsure of their health care benefits, but if they are also part of the state employee health care system (which

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@gotta_luv_ct: You raise many

@gotta_luv_ct: You raise many interesting points, but I believe there are a few things on some of your points that you failed to consider.

1) You talk about IT problems: the new negotiated agreement includes savings for utilizing new technologies and reduced licensing procurement and consulting costs. This may not address every issue, but it is a start.

2) You talk about the costs of political campaigns keeping regular people out, but CT is one of the few states that have passed a system of voluntary public financing so that more people can afford to run.

3) You talk about

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Hey Dave Z., I think that you

Hey Dave Z., I think that you should read this,
http://www.nbcconnecticut.com/news/politics/How_much_do_public_workers_e...

I'll quote 2 things from the article, "

However, two economists at the University of Wisconsin, Keith Bender and John Heywood point out that “government workers have jobs that demand more education, which is not accounted for by raw averages.”

"They said, “Holding education and other characteristics the same, typical state and local workers earn an average of 11 percent less and 12 percent less, respectively, than comparable private-sector workers.”

Oh, and just to make a point about how state workers haven't given anything back, from 7/2008 to 7/2011

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Dear Wigman: Thank you for

Dear Wigman:

Thank you for bringing that article to my attention. It is actually very interesting.

First, it does NOT say union members earn 11% LESS than those in the private sector, but rather 25% MORE. You really shouldn't try to play games like that. Yes, they did say that "adjusted for education," it came out less, but the reality is that public workers earn MORE.

Second, the methodology of this "study" was not disclosed. If you know anything about statistics you know that methodology

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Dave. 49% of the Public

Dave. 49% of the Public sector employees have a Bachelors Degree or higher and 23% of the private sector do. The public sector employees SHOULD make more based on educational level. Salaries and skewed higher at UConn because thousands are PhD faculty making 6 figures. And guess what, they should make 6 figures. If you do the work and the time for a higher ed degree you get paid higher. There a many studies out there refuting how public sector employees get paid higher. It's apples to oranges. You get paid what

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Myth busting for those in the

Myth busting for those in the private sector jealous of those in the public sector:

The average pension for a CT state retiree is $29,000 annually (this is high due to the high number of Tier 1 retirees. About 90% of all Tier 1 are retired and as they die off, the number will go down significantly)

The average pension for Tier IIa retiree is $11,000 annually (hardly enough to buy beach front property. People love to point out the few 6 figure pensions and try to get you to believe that this is the norm).

There actually

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Dear Douglaswill: Your

Dear Douglaswill:

Your argument is a quagmire which I am not sure you want to step into.

First, I don't know where you got those figures, or if they are correct. But let's assume they are.

Second, why should those with a degree get paid higher? Yes, I agree with you that someone right out of college with a degree should be paid more than someone with a high school diploma. For most jobs. But what if the job is collecting trash? What difference does it make what the worker's educational level is?

Also, all degrees are

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GOOD. Cut town aid. Make

GOOD. Cut town aid. Make these towns that mainly overspent on their budgets from 1995-2008 finally have to practice financial responsibility. Why does the state have to pay their bills?

Cut it all.

Reduce Welfare.

Reduce Medicaid

Reduce Section 8 housing payments to slumlords - scummy landlords are filling their pockets with taxpayer dollars by not repairing houses they are MANDATED to fix

Cut Welfare for ILLEGAL IMMIGRANTS too!

Repeal that STUPID bill that now provides college tuition to ILLEGAL IMMIGRANTS

If you don't have a degree in

If you don't have a degree in science, mathmatics or engineering you wasted your money.Liberal arts,psychology, criminal justice, etc... are for those not really capable of learning important things and are pretty much useless in the real world.

Degrees in the areas of

Degrees in the areas of liberal arts and the social sciences are not useless. College graduates for the most part are better able to communicate with others and have greater a greater ability to function in our society than their high school counterparts. Private sector companies religiously utilize liberal arts graduates in the areas of sales,marketing and management. It is true that person holding a degree in engineering, nursing, or medical sciences is apt to make more money in his or her lifetime, but a college degree is not a worthless piece of paper by any

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if you get a liberal arts

if you get a liberal arts degree, the most important thing you can learn with that is how to say " would you like to supersize the fries sir'

Dear Art I agree liberal art

Dear Art

I agree liberal art degrees are not worthless, but the question is should employees with a liberal art degree be paid more when the degree has absolutely nothing to do with their job? I think not. Or at least not much more. Sure, the ability to communicate is probably better for college graduates than for high school graduates, but the college graduates are also four years older. Ten years out, doing the same job can it really be said that most college grads are doing more than high school grads who have also done the job for

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I truly believe that State

I truly believe that State aid to municipalities needs to be spared cuts during the first year, and be hit with only slight cuts during the second year.

But BEYOND that, I think the State needs to start on a path towards gradually phasing it out (except for aid to public schools, because it's the STATE that's actually legally responsible for providing equal educational opportunities to its citizens, not the municipalities per se). When I think about it, general State aid to municipalities amounts to State welfare for cities and towns... the cities and towns with wealthier citizens and a

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