Unions And Malloy Leave Taxpayers With The BillJune 26, 2017
State leaders so far have failed to reach a budget deal.
Gov. Dan Malloy (D-Conn.) is faced with a daunting task this summer: balancing the two-year state budget. State leaders so far have failed to reach a budget deal. Amidst this uncertainty, Malloy has announced a “tentative concessions framework” to move forward with union concessions:
A tentative concessions framework between Gov. Dannel P. Malloy and state employee unions took a step forward Monday with the news that all bargaining units have agreed to submit the proposed concessions to a vote by rank-and-file members. Ballots are expect to be cast in mid- or late July.
The latest numbers add more than $1.464 billion, which means the deficit is now around $5 billion for the next two years.
If a deal can be struck, though, it would also lock in the generous state benefits package through 2027:
Connecticut’s pension fund is only 36 percent funded due to years of underfunding and overpromising. The yearly cost of those unfunded liabilities has grown to $1.6 billion. That figure will grow to $2.2 billion over the next five years under a new payment deal made separately by Malloy and approved by lawmakers in January.
Unions for Connecticut’s state workers plan to put the proposal to a vote, a move that could leave the state with billions in needed concessions but still facing the need to raise taxes or cut spending.
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