OP-ED: It’s not just about the budget, it’s about growing jobs and the economy
by Sal Luciano | Feb 6, 2010 7:14am
(12) Comments | Commenting has expired
Posted to: Opinion
A recent op-ed published by CTNewsJunkie and written by Jonathan Pelto appealed to gubernatorial candidates to tackle the tough decisions facing Connecticut. Mr. Pelto wrote that the next Governor would be forced to make the “deepest cuts” and the “largest revenue increases in our state’s history.” In his view, this is the only solution because the budget is the problem. We believe the problem is the economy and the loss of tens of thousands of jobs. To solve the problem AND balance the budget, you’ve got to look deeper and focus on jobs and the economy.
The issue of proposing the deepest cuts to state services in our history is actually not new and is one that has been proven to be fatally flawed. In 2009, Governor Rell proposed again and again to eliminate vital public services to the outcry of Connecticut citizens. It was not simply the refusal of a handful of constituents angry over the loss of their pet program. Citizens came to the state capitol by the hundreds, in the snow, to loudly express their profound anger and fear over proposed cuts in services to every type of program imaginable. Cuts in funding for LifeStar, programs to help those with AIDS/HIV, early education programs, licensed practicing nurse training programs, day care centers, losses in public safety staffing levels and the closing of hospitals and treatment facilities represent a range of the services the people from all over Connecticut feared losing.
Luckily, the General Assembly heard their voices. They also were informed by studies which showed that cuts in services pushed the economy further into recession. As a result of slashing public services over the past year, Connecticut lost another 50,000 private sector jobs. With more job losses, and less services to help families in need, the economy would be doomed to spiral downward. Even by eliminating all appropriations from the state budget, Connecticut would not be able to balance the books. Cuts are not the answer.
Mr. Pelto proposes using a scalpel to restructure the essence of the way government functions. Leaders and members of SEBAC have been trying for months to get the administration’s ear on government efficiency. We were able to sit down last week and discuss our 18 point plan which includes short and long-term ideas on ways to run government more efficiently and save precious dollars. Our proposal is comprised of a long list of win-win ideas to put Connecticut’s families back to work and get the economy growing again including identifying efficiencies for state workers, reducing duplicative bureaucracy, implementing flexible healthcare spending accounts, and implementing the state Contracting Standards Board.
Many have suggested that services be shifted to community-based nonprofits. While our non-profit providers often do a good job at the services they provide, they are and have been dramatically underfunded. To save money, they either grossly underpay their workforce, or are forced to work with inadequate staffing levels. Now that the state is in fiscal crisis, this is even more acute. Is that better for those workers? Is it better for the people receiving the services? Is this better for Connecticut’s economy? Certainly not.
Many commentators have been particularly critical of those employees who work for the state. Mr. Pelto takes aim at public service workers and suggests that the state reduce unnecessary bureaucracy by shifting decision-making from management to frontline workers. We agree and suggested as much to Governor Rell last week when we met. That is why we feel strongly that the next Governor must reactivate the Agency Innovations Review Panel and engage with our public service workers in order to solve this crisis. No one knows better how to reduce waste and increase efficiency than the workers who experience public service every day. They simply need to be heard.
Revenue is a crucial piece to solving the budget deficit. Mr. Pelto points out that closing corporate tax loopholes and broadening the income tax structure is a necessary step in bringing Connecticut closer to solving the fiscal crisis. A fair and reliable resource stream must be a part of the General Assembly’s package this session.
SEBAC has proposed several other programs to help balance the budget but more importantly to stimulate job growth and economic recovery. Some of the ideas we’ve proposed include: using new federal funds to rebuild the state’s transportation infrastructure; implementing a Jobs Corps and using the energy and talents of unemployed workers to help rebuild our economy while helping them find new permanent jobs; continuing day care for the unemployed who are seeking jobs; implementing a comprehensive telecommuting and at-home work assignments to save the state money from reduced fuel consumption and improved use of workers’ time on the job; shifting focus from management to direct scarce resources on direct services provided by the front-line workforce; reinvigorating job sharing and other flexible work programs such as voluntary schedule reductions; and implementing flexible healthcare spending accounts.
Our state’s public service workers are ready with great ideas to help get Connecticut’s families back to work and our economy growing again. We came to the table last year with nearly a billion dollars in real savings toward the budget deficit. We’re ready again with concrete proposals to save the state money, improve government efficiency and increase jobs. We remain committed to working with legislative leadership, the Governor and the gubernatorial candidates to ensure that Connecticut’s future is a bright one full or economic promise and prosperity for all.
Sal Luciano is Executive Director of AFSCME Council 4.
(12) Comments
posted by: M Maitland, SECT | February 7, 2010 9:12am
“As a result of slashing public services over the past year, Connecticut lost another 50,000 private sector jobs.”
Sal, I am just curious: Is the above assertion based on a formula, anecdotal evidence, or proof? It is a bold (though not surprising) claim to leave unsubstantiated. In any case, thanks for the interesting and informative posts Sal and Jonathan. And, for the record, I think anyone who thinks “growing the economy” is the sole solution to our problems (CT, USA or global) is either seriously misguided and/or in denial.
posted by: bgenerous | February 7, 2010 12:12pm
This response to a recent op-ed piece is indeed odd. Public Service cuts in CT over the last year caused 50,000 private sector jobs to be lost in CT? This seems like a questionable statistic meant to protect public sector union jobs in the future.
I didn’t agree with some things in the original op-ed, but this op-ed response does seem to misrepresent what was written in the original piece.
posted by: GoatBoyPHD | February 7, 2010 3:09pm
Ir’s a shame SEBAC didn’t introduce union reform as part of their proposal.
Frankly that’s all I want from them. Until then no one really cares what they say about the state economy or how to mismanage OPM (Other People’s Money).
Go ahead and play the same game of brinksmanship the Autoworkers Unions played. Everyone else is wrong, not you.
Good Luck with that when this recession hits the double dip.
Yes. I’ve seen the litigation in the state agencies over the need to promote unqualified people and retain them forever. And there SEBAC is, without any sense of moral dignity or pride to defend the indefensible with arrogance.
I’ve seen the static job descriptions that prevent real dynamic evolving organizations from coming to fruition in the state’s agencies.
SEBAC doesn’t need to do a lot to make themselves a dynamic group of unions that capture the best of union theory and capitalism. The current leadership is far too myopic to do so.
posted by: CT Jim | February 8, 2010 6:22am
Hey Goat Boy,
Union reform???
Union reform??
What do you want for them to disappear???
Thats like saying if we had Lincoln reform we would still have slaves. Is that what you want.
As for your down right grade school head in the ground assumption that the Auto workers problems have anything to do with their union is just plain stupid.
It was the race to the bottom perpetrated on the american public by Ronald Regan and accelerated by Both Bushes and Clinton to ship our manufactoring jobs first to Mexico then to China that has left us with this mess.
No gaot bot boy HISTORY would tell you that the downfall of the american economy was and is the evershrinking desity of union jobs across america!
Want to save good paying jobs? JOIN a UNION!
Want to retire with dignity? JOIN A UNION!It has been and still is the only way to find good health care benifits!
When Palin was making her little speechy to the the tea boys she evoked Regan about 30 times and these morons were running up to drink the juice faster than a Jim Jones revival.
When your sitting outside on a lazy sunday afternoon remember to thank a UNION member because the unions created the weekend.
When you need to take time off to take care of your sick mom thank Chris Dodd and thank a union member who pushed to have that bill enacted.
And when working at your job thank a UNION member when you get a raise because without the minimum wage being increased YOU wouldn’t get one.
posted by: Matt OConnor | February 8, 2010 11:53am
M Maitland - the source for Sal’s references to private sector job losses is the research done by the Center for Economic and Policy Research - specifically its report from Dec. ‘08 on the impact of public service cuts on workers from all sectors of the economy.
CEPR’s analysts took Mark Zandi’s research on job creation from investing public dollars and applied it to job losses from spending cuts. Some analysts have later suggested that Zandi (among other roles, an economic advisor to John McCain’s ‘08 presidential campaign) was too conservative so the the job losses would be even worse than he calculated.
But CEPR used his math to determine a resulting 13.78 jobs lost for every $1 million in public dollars cut, or about 41,000 jobs for $3 billion in total cuts. With the governor’s original 2009 budget cuts, plus her rescissions and hold-backs, the amount slashed by late last year was about $3.7 billion; hence the 50,000 lost jobs.
posted by: GoatBoyPHD | February 8, 2010 1:36pm
MR O’Connor,
I’m sure you know the difference between correlation and causation The Implied Job Loss is based on ratios from prior recessions as a gauge to predict job losses and in no way is saying that government spending cuts slone were resposnible for those job cuts.
BTW the unemployment rate goes up during a recession too and is a fairly good indicator of job losses without causing the actual job losses.
posted by: CT Jim | February 8, 2010 5:52pm
Goatee,
Under 20 years of Republican rule CT is last in job growth!
Got it?!!!
posted by: StopSocialism | February 9, 2010 8:13am
Yeah Jim, and the fact that we have a Democrat-controlled state legislature has NOTHING to do with our problems, huh Jim? Get your head out of the sand.
posted by: ACR | February 11, 2010 6:42am
After attacking his one of his own allies and an honorable man who held one of the most liberal voting records in CT history;
Sal Luciano said:
As a result of slashing public services over the past year, Connecticut lost another 50,000 private sector jobs.
I’d love to see how that math works.
Is it one of those “divide by your street address and multiply by your zip-code” math tricks?
Never mind - I doubt anyone would believe it regardless of how cleverly thought out.
Virtually no one I know trusts anyone who attacks their own in a public forum such as this; and you Mr. Luciano have shown your colors sir.
posted by: GoatBoyPHD | February 11, 2010 8:32am
50,000 private sector jobs lost due to budget cutting last year?
And SEBAC didn’t make any real cuts just an early retirement program and a freeze?
Isn’t it time SEBAC shares the burden?
CECA, The CT Economic Council, predicts a $1.7 billion deficit mitigation plan will result in 25,000 jobs lost or 1 job lost for every $63,000 cut. It doesn’t factor in the effects on the economy of lower taxes and the efficiencies and productivty derived by cutting staff and assumes the cancelation of cpaital projects rather than union layoffs.
Yes those inspectors are SEBAC too and it’s difficult to see where their layoffs would ripple through the private sector. Eliminate prison sentences for non-violent offenders? Turn it into a Profit Center and wage garnish in lieu of imprisonment, rehab where required and education where needed and privatize the whole industry if necessary
posted by: CT Jim | February 11, 2010 9:55am
Funny how people like goatboy want everybody else to take the hit except HIM.
So how much of a hit did you take?
The SEBAC unions took a hit of $750 million and those are real dollars.
When a custodian making $15 an hour is forced to take 7 UNPAID furlough dfays just to keep his or her jobs for about 18 months and tries to feed their family on whats left, now those are REAl HITS!
I would venture to say goatboy took zero hits and need the workers to take another for him.
The answer should be no.
And laying off workers, now thats a great idea it worked so well for Hoover lets try it again.
What about all those towns waiting for thoise property taxes that won’t be paid not to mention all the small businesses that will be forced to close necause those that supported them in the past are no longer able to.
50,000 thats on the low side.
The difference here is SEBAC stepped to the plate FIRST. Now it’s goat boys turn.
posted by: jonpelto | February 6, 2010 7:41pm
What an interesting, even bizarre response, from Connecticut’s state employee union leadership to my recent commentary piece in CT News Junkie.
My piece was a call for historic leadership and action as we confront Connecticut’s extraordinary budget crisis.
In response, the union leadership maligns my character while twisting and misrepresenting what I wrote.
Sal Luciano, Executive Director of AFSCME Council 4, is the leader of one of the most important and venerated public employee unions in Connecticut.
He incorrectly writes that “Mr. Pelto takes aim at public service workers…”
Nothing could be further from the truth. As a third generation public servant, having retired from the Legislature with one of the highest life-time AFL-CIO Cope ratings of any legislator in history and with a long career of working to further the vital role of a progressive government, I bow and defer to no one when it comes to being a champion for Connecticut’s public employees.
His unwarranted attack is nothing short of absurd.
Meanwhile, he demises my basic premise that we will need significant tax increases and budget cuts in order to realign Connecticut’s state budget and preserve the availability of essential state services.
Instead, he says that the solution is “growing the economy”. While the notion that we can simply grow our way out of this problem strikes me as a bit Reaganesque, I wholeheartedly agree and support the goal that we must focus our attention on growing Connecticut’s economy. No state has done a worse job when it comes to creating jobs and developing and implementing economic development strategies. We can and must do better.
That said, the impact from the Great Recession and short-sighted budget strategies means Connecticut’s fiscal house of cards is collapsing as we speak. A chasm of unimaginable proportions awaits us down the proverbial tracks. We passed the “bridge out” sign a while back, our train is picking up speed and our driver has left the engine and control in order to check out the buffet car. At best, we have until July 1, 2011 before we hurtle over the precipice and follow California into the abyss.
Creating jobs and growing the economy is vital to the future of our state, but stepping into the truth of our budget crisis is the only hope we have of preserving a level and quality of government services that our citizens need and deserve.
Denying that truth has led us down this disastrous path and facing the truth of this budget calamity is the only way out.
Finally, his unwarranted and misguided attack on Connecticut’s community-based nonprofits is truly misplaced. Like the vast majority of state employees, non-profit providers and their employees work day in day out to make life better the tens of thousands of Connecticut residents they assist. Those dedicated to public service, whether employed by the state or nonprofits deserve our respect and appreciation. Non-profit providers are the vital core of Connecticut’s safety-net and implying anything less is not only wrong but a disservice to our overall efforts to make Connecticut a healthier, safer and better place to live.
I count myself as one of the greatest supporters of Connecticut’s state employees and the role of Connecticut State Government. To say that I am perplexed by Mr. Luciano’s comments would be an understatement. Shooting the messenger is certainly not the way for us to overcome this challenge, nor is it the way for the Democratic Party to earn the support of Connecticut’s voters in these trying times.