Fasano: Connecticut union leaders could avoid layoffs by compromising on benefits [NHRegister]

New Haven Register

NEW HAVEN >> State Senate Minority Leader Len Fasano, R-North Haven, is critical of state union leadership that won’t agree to adjustments in state workers’ health insurance and pension contributions, which he said could mitigate the need for layoffs.

He accused the “powerful union heads of taking advantage of the powerless bottom rung people in the unions,” by not compromising now as the state looks to close a $921 million deficit in fiscal 2017.

“I don’t believe in layoffs,” he told the New Haven Register editorial board Thursday, adding that layoffs would not be necessary with benefit adjustments.

The State Employees Bargaining Agent Coalition (SEBAC), which represents dozens of state worker unions in negotiations for benefits, has an agreement that is in effect until 2022.

A coalition of state worker unions has responded with radio and Internet ads, calling on legislators to tax the top wage earners to make up for the state shortfall, but Gov. Dannel P. Malloy, as well as the Democratic and Republican leadership, have vowed not to increase taxes.

Both parties have urged the unions to come to the table as income tax revenues from the wealthy keep dropping.

“Opening up the SEBAC agreement is like tossing a penny into the ocean,” said Charles DellaRocco, president of AFCCME Local 749. “It’s time to tax hedge fund traders and CEOs, not middle class, taxpaying state employees.”

SEBAC has said it can’t engage in negotiations on benefits without the express approval of its membership, which has led Malloy to begin laying off what could be 2,500 workers.

Senate President Pro Tempore Martin Looney, D-New Haven, said the administration has estimated the layoffs would save some $250 million, but that is not a net figure when such things as unemployment compensation are taken into account.

Fasano said legislators are responsible for the situation after producing budgets that have to be continually adjusted when revenues fall short. He said in this scenario, “the workers take the hit.”

“No one likes to lay off people, but what is worse is when you mismanage and have to let people go,” Fasano said.

Fasano said he would count on the estimated annual loss of 1,900 workers through attrition as a start and build on that with benefit cuts.
He said the group that will most directly be impacted are less-senior workers with young families and mortgages.

“That’s horrible,” Fasano said.

The minority leader said the workers don’t have any co-pays on maintenance drugs, such as those for diabetes and high cholesterol; they pay $5 for a 90-day supply of a generic drug; $10 for a prescription drug; $15 to see a doctor. He said 75 percent of state workers pay 2 percent toward their pension; 25 percent pay zero, while the average is 7 percent.

Fasano said if all procedures and drug charges were raised $5 across the board and everyone paid at least 4 percent toward their pension, he estimated a savings of between $110 million and $150 million in 2017.

Fasano said the unions should consult the membership on givebacks they are willing to make to stay employed. He said the rank and file he has talked to would be willing to make such a deal.

The minority leader wrote to the union leadership urging them to come to the bargaining table, but received a pointed letter from SEBAC lead negotiator Daniel Livingston in return.

Livingston said Fasano had “vilified” state workers for two decades and he accused him of a “new-found” concern for them. He said the role of the government was to do more for the 99 percent left behind, rather than the wealthy 1 percent who continue to make gains.

AFT Connecticut President Jan Hochadel also weighed in.

“After years of leadership, Senator Fasano appears to have only has two ideas; break promises to state workers and prevent them from providing services to our communities. It’s time he starts looking at the cost saving measures we agreed to in 2011 and have yet to be implemented,” she said.

On closing the $921 million budget shortfall for next year, Fasano was critical of the second plan just put forward by Malloy in which he cuts Educational Cost Sharing grants to the state’s wealthier towns by about $44 million, as well as hospital funds and maintains previous social service cuts.

Unless the Democrats agree to start structural reforms that will have a longer-term impact on a more sustainable budget, he said Republicans don’t plan to present a budget package.

He predicted that the Democrats will fail to offer a 2017 revised budget if they wait until the consensus revenue figures are available in late April before crafting one to meet the session’s May 4 deadline.

Looney, however, said they expect to have a handle on revenues by the week of April 25 and the Senate will meet Friday on its options; the House met on Thursday.

“Our obligation is to get a budget on (Malloy’s) desk,” Looney said. “That’s our plan.”

He said in order to get the ECS formula passed, the compromise years ago was to hold harmless wealthier towns whether they needed the grant or not. Eliminating or cutting them now is a good idea, the Senate leader said.

Looney said there will be funds to help with the car tax savings as part of municipal revenue sharing and a new structure for PILOT (payment in lieu of taxes.) There will be a fight over the $101.4 million cut by Malloy that was designed for more general distribution.

He said Democrats also plan to put back the $40 million Malloy keeps cutting in hospital funds.

Looney said structural reforms, such as a vote on union contracts, a cap on bonding and an overtime accountability department, as suggested by Fasano, won’t produce immediate savings, but they are willing to discuss these things if it means the Republicans will engage in a bipartisan budget deal.