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Malloy’s Union Deal: $1.6B in Concessions Now, But Deal Stays Until 2027

May 22, 2017 By Staff
Malloy’s Union Deal: $1.6B in Concessions Now, But Deal Stays Until 2027

Gov. Dan Malloy (D-Conn.) took a step toward balancing the two-year budget with $1.6 billion in union concessions, but it keeps generous benefits in place for the next 10 years.

Gov. Dan Malloy (D-Conn.) extracted $1.6 billion in two-year concessions from state labor unions, but also extended their generous benefits package to 2027, in a deal first reported by The CT Mirror on Monday morning.

The Mirror‘s Keith Phaneuf summarized the deal:

The agreement features a three-year wage freeze retroactive to the 2016-17 fiscal year. It also would boost pension and health insurance costs for workers and would include fewer than five furlough days.

But it also would extend the controversial state benefits contract with its employees through 2027 — a provision expected to draw criticism from many Republican legislators and some business groups. That provision also largely would remove a contentious issue from the 2022 gubernatorial debate.

The deal, if approved, gets Malloy and the legislature about one-third of the way to closing a two-year budget deficit that is expected to be around $5.1 billion.

However, as Phaneuf has noted, the deal also holds in place many of the generous benefits employees receive from the state. This makes it likely Connecticut will continue to run deficits every two-year budget cycle.

One major difference? The next two-year budget will be managed by a new governor. Connecticut just doesn’t know who yet.