Senator Martin Calls Revised No-New-Tax State Budget & Labor Proposal the Change Connecticut Needs

Hartford – State Senator Henri Martin today joined fellow Senate Republicans as they announced a revised biennial state budget proposal that contains no new taxes and proposes an alternative to the labor savings deal negotiated by Governor Dannel P. Malloy and state employee union leaders.

The Governor and state employee unions proposal would lock the state into specified benefits that include wage increases ranging from 9% – 11% over a five-year period.

“Our budget shows that we have a well-thought-out plan for dealing with the state financial crisis,” Sen. Martin said.

Senate Republicans proposed two labor savings options to accompany their two-year budget proposal. One would involve renegotiating with state employee unions. The other plan would achieve savings entirely through legislative changes to employee benefits.

 “The reality is that the Governor’s deal with the unions does not produce the savings that will stabilize the state budget, lead to a solvent employee pension plan, and protect state employees from drastic layoffs,” Sen. Martin said. “We need to make significant, structural changes to state employee benefits to bring them more in line with the private sector. This will provide a more secure future for employees and the state.”

The governor’s proposed labor deal is projected to save $1.5 billion over two years, with only $186 million achieved from concessions that need approval from state employee unions and the governor. An analysis of data from the Office of Fiscal Analysis projects that $1.3 billion of the governor’s proposal could be achieved through legislative action. An extension of the collective bargaining agreement would not be necessary.

“Extending the collective bargaining agreement by another five years would tie the hands of future administrations,” Sen. Martin said. “Why commit the state to that kind of agreement if we don’t have to? We have developed a plan and a budget that returns predictability and financial stability to Connecticut. It will require sacrifices, but that is the only way we can create an environment to spur economic vitality.”

Either of the two labor savings options proposed by Senate Republicans could be used to balance the Republican “Confident Connecticut” budget proposal, which includes the following elements:

• Does not include new taxes
• Increases Education Cost Sharing funding by $170 million in the first two years and implements a new funding formula
• Protects all towns and cities from cuts to statutory municipal grants in year one, either holding municipalities harmless or increasing funds
• Maintains tax exempt status for hospitals to protect them from a new local hospital tax
• Preserves core government services by restoring funding for social services and programs that benefit people most in need
• Prioritizes transportation needs and stabilizes funding without tolls
• Lowers taxes for retirees and helps seniors age in place

Full details on the complete Senate Republican “Confident Connecticut” fiscal years 2018/2019 budget proposal available here: http://ctsenrepublic.wpengine.com/wp-content/uploads/2017/05/SRO_BudgetSummary_May2017.pdf.

Sen. Martin represents the communities of Bristol, Harwinton, Plainville, Plymouth, and Thomaston.