Budget Battle Brews At Capitol
by Christine Stuart | March 5, 2009 10:52 AM
Posted to State Capitol
Below the surface Wednesday and outside the hearing rooms, a budget battle between Gov. M. Jodi Rell and the legislature’s Democratic majority began to bubble up to the surface.
Early in the day Rell said negotiations to secure $295 million in concessions from the state’s approximately 50,000 union workers was going “slow.”
“We really have been trying very hard to avoid layoffs at all costs,” Rell said. “But there are going to be very few options in the future … I’m not going to rule it out.”
Later Wednesday afternoon Rell’s office sent this letter to legislative leaders warning that the $20 million in unspecified cuts included in last week’s deficit mitigation plan will result in layoffs and cuts to higher education.
“At this point in the budget - and at this point in the fiscal year - any meaningful cuts in Personal Services will now necessarily result in layoffs, while further reductions in Other Expenses will result in cuts to higher education,” Rell said. “There is simply no way around it. The Legislature needs to understand that this is the result of the choices they have made - and that other choices are available.”
Senate President Donald Williams, D-Brooklyn, said Wednesday that while Rell suggests it is impossible for her administration to make these rescissions without laying-off workers and making cuts to higher education, it is important to note that just 24 hours before today’s news release, Rell ordered a freeze on all state agency purchasing for an estimated $4.7 million in savings.
“Furthermore, during negotiations over the last mitigation plan, the Rell administration opposed nearly $30 million in cuts and insisted that the savings be taken out of the final bill,” a press release from Williams’ office stated. “Many of these cuts - such as eliminating the Deputy Commissioner positions - were supported by both Democratic and Republican legislators.”
The unions have taken Rell’s letter Wednesday as a threat.
“Some may see the Governor’s statement as a threat to State public service workers” Ed Marth, the executive director of the University of Connecticut Chapter of the American Association of University Professors, said. “I have to question Governor Rell’s leadership when she talks about cuts to our public colleges and universities. That would be a death blow to our state’s economy and hurt everyone in Connecticut.”
In her letter Wednesday to lawmakers Rell said “I have only cut higher education once, because I did not wish to further add to the burden of students or their parents in making higher tuition payments in these extraordinarily difficult financial times.”
On Monday the Democratically-controlled Appropriations Committee is expected to identify $2 billion more in cuts, which it has said will provide a more accurate picture of the two-year budget. Since Rell released her budget on Feb. 4, Democratic leaders have said it closed a $6 billion budget gap, when they’re budget office has estimated the gap at $8.7 billion.
Comments (5)
Posted by: Yellow_dog | March 5, 2009 12:59 PM
$295 million in concessions from the state's approximately 50,000 union workers amounts to $5,900 per worker which isn't an insignificant amount of money to give back.
Couple the $5,900 per worker ($113.50 per week) with the fact that the existing collective bargaining agreements were not put in place quickly then it is no surprise that it is taking some time for both sides to come up with workable solutions.
Taking $5,900 from each state worker shouldn't move at the same urgent pace as decisions on bottle deposits and office supplies as decisions of this magnitude will cause significant hardships to the taxpaying state workers.
The Gov needs to be patient on this.
Posted by: For what it is worth | March 5, 2009 8:35 PM
The 295 million is only the beginning. Gov. Rell's two year budget calls for over 540 million dollars in concessions from state employee's.
She also has over 40 million is labor savings she needs to find by April 1st to close out this current fiscal year.
As to 'going slow' how about not going at all. The Governor's office has met only 1 time with state employees' unions.
Gov. Rell is backing herself into a corner which will lead to two things: state employee layoffs and a progressive income tax rate.
She will then put on a flowery spring or summer scarf and tell us all they (the GA and her) had no other choice.
Posted by: ctkeith | March 5, 2009 9:38 PM
Brew?
This is the longest brewing the Human race has ever witnessed and the two ingredients needed for this Brew(Some More revenues and some more spending cuts) noone will be first to propose.
The Game of Chicken by our elected Chickens**ts continues.
Posted by: Jay![[TypeKey Profile Page]](http://www.ctnewsjunkie.com/nav-commenters.gif)
| March 6, 2009 8:44 AM
There seems to be a great eternal whine happening in the governor's office. While most people understand the financial hardships of the state, it would help if the governor would not stop her continual whining.
I have a difficult time with cutting state workers when the governor has not made every attempt to cut elsehwere. For example, what about the millions of dollars that could have been saved by not appointing 9 new judges that the judicial branch specifically called Lisa Moody and stated that they were not needed. See the article by Lender from last month.
The Governor's office now looks like an organize group of buffoons. Until the Governor starts to make cuts in her own house, I doubt any serious negotiations between the General Assembly and the Governor's office can continue. The incident noted above and other incidents of the Governor's ignorance on the budget matter have called in to question her leadership style, or lack thereof. Leadership means leading by example and having important facts straight, like whether there will be a budget deficit of $6 or $8 billion for the next fiscal year. Seems the governor was not sure what the deficit balance would be. It is actually $8.7 billion according to the nonpartisan Office of Fiscal Analysis.
So before we cut programs for the poor and indigent who could not afford to hire a bunch of lobbyists to lobby the Governor's office or the Legislature on their behalf, let's restore the tax rates on corporations who have benefited greatly in the past 18 years by a 50% reduction in property and other taxes. They and their CEO's with their mult-billion dollar salaries and compensation, yes that is a B for Billion, have made out like bandits, because they have not had to pay their fair share. You would think that their conscience would bother them, if they had one.
Posted by: kevin | March 6, 2009 11:49 PM
Maybe it's time the state took a good look at all the money it's giving away to a private prison industry, in particular for non-violent drug offenses. Instead of cutting jobs and social services, change policy. Treat drug addictions as what they are - addictions. We don't lock up all of the alcoholics in the state! Locking addicts up only makes worse addicts. It costs on average more than $40k per year to house one inmate for one year in this state. Why not charge fines for drug possession charges, and require rehab? This would create jobs in addiction services, and we would save hundreds of millions of dollars a year.