Senate Republicans & Senator Hwang Take the Lead in Proposing Revised No-New-Tax State Budget & New Options for State Employee Labor Savings
Hartford – Senator Tony Hwang (R-28) joined fellow Senate Republicans to unveil a revised two-year state budget proposal that he said demonstrates the leadership needed to restore Connecticut taxpayers faith in government and revive the state’s economy.
The Republican Senate proposal rejects the labor savings deal negotiated by Governor Dannel P. Malloy and state employee union leaders that extends the collective bargaining agreement with an additional five-year extension into 2027 that includes a no layoff provision.
“This alternative budget shows that Senate Republicans have a vision for changing the way we do business at the state capitol,” Sen. Hwang said. “It reinforces the urgency of our present economic situation and the need for shared sacrifice to resolve problems that have been years in the making. We didn’t get here overnight and it will take time for us to restore the public’s faith in our government. Businesses like GE and possibly Aetna and taxpayers with the financial means are leaving Connecticut because they don’t see a future in our state. Now it is critical for us to show we can build a better and a more sustainable future.”
Sen. Hwang said the Republican proposal provides an alternative to the Governor’s deal with the state employee unions that would lock the state into specified benefits, including wage increases ranging from 9% – 11% over five years. Instead, Senate Republicans identified two alternative labor savings plan options to accompany their two-year budget proposal:
Option A: A savings plan achieved by re-negotiating a more comprehensive concession deal with the state employees unions.
Option B: A savings plan achieved through legislative leadership and statutory policies if the state employee unions choose to not come back to the negotiation table.
“Contrary to what some commercials and emotional rhetorics have claimed, Senate Republicans do not see state employees as the enemy. We recognize the important role they play in providing vital services to state residents and we want them to be part of this process,” Sen. Hwang said. “However, when the health and pension benefits of state employees are compared to the private sector, they are more than the state can afford. We absolutely need greater parity with private sector workers; we need to demonstrate a commitment to shared sacrifices.”
The governor’s proposed labor deal with the state employee unions is estimated to save $1.5 billion over two years, but only $186 million, or 12%, of those savings come from concessions that fall outside of the control of the legislature and that need approval from state employee unions and the governor to pass. According to an analysis compiled by the Senate Republicans utilizing data from the Office of Fiscal Analysis, $1.3 billion of the governor’s proposal could be achieved through statutory changes alone without locking the state into the SEBAC contract for another five years.
Sen. Hwang said any budget approved by the legislature needs to make structural changes that creates sustainability and provides taxpayers with more transparency about how state tax dollars are spent.
“State budgets must reflect the values and fiscal responsibilities found in so many Connecticut households. You can’t spend money you don’t have,” Sen. Hwang said. “We have to respect taxpayers and show that we value every dollar we spend. We also must act with the urgency that the state’s fiscal crisis demands.
Both of the labor savings options proposed by Senate Republicans will balance the Republican’s “Confident Connecticut” budget proposal, which includes:
- 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
- Enhances funding for state parks and tourism
- Streamlines government
- Provides for structural changes
More details about the proposed labor savings options available in the attached presentation.
Full details on the complete Senate Republican “Confident Connecticut” fiscal years 2018/2019 budget proposal available here:http://ctsenaterepublicans.com/wp-content/uploads/2017/05/SRO_BudgetSummary_May2017.pdf.
Sen. Hwang represents the communities of Easton, Fairfield, Newtown, Weston, and Westport.
