In a surprise move at the Legislature this weekend, several Democrats, both in the House and the Senate, sided with Republicans, voting in favor of a Republican budget proposal (HB 7501). The controversial bill awaits review by Governor Malloy, who has signaled his intentions to veto the legislation.
The bill contains several agency budget cuts and consolidations, which comes as no surprise as the legislature needs to address a $3.5 billion dollar deficit. However, in addition to the funding cuts, the bill incorporates language which is hostile to collective bargaining for state employees. If not vetoed by the Governor, the bill will become law. Changes that negatively impact state employees and our collective bargaining process include:
- Increases pension contributions for all employees to 7% of salary in 2027
- Lowers the Tier2, 2A, 3 pension calculation in 2027
- Ends retiree pension COLAs in 2027 for ALL retirees
- Ends OT in pension calculations starting in 2027.
- State Labor contract agreements or arbitrated agreements would be rejected if not voted on in the legislature within 30 days. Any rejected agreement would then have to be arbitrated (or re-arbitrated) and sent back to the legislature for automatic passage.
- Limits what an arbitrator may consider for the State's "ability to pay" during negotiations.
- Allows the State to break contracts under certain circumstances. This is not just labor contracts this is any and all contracts...it is unclear if they actually tried to deem themselves this much power and authority, but it certainly seems to violate federal contract laws.
- Limits SEBAC and union agreements to 4 years
- Requires the Comptroller to annually review the SEBAC2017 agreement to ensure that the projected savings are achieved and allows the Governor to recover any lapse if insufficient savings.
Most of the changes above also included a provision requiring a 2/3 vote in both chambers to amend or repeal...this clearly can't withstand a legal challenge.
Despite the good will and cooperation we showed and the tremendous savings we granted the legislature through our own monetary sacrifice, there remains no respect and no gratitude from certain corners of the legislature...they have a mission and we are their target. Although this budget will most likely be vetoed by Governor Malloy, it is likely that some toxic pieces of the above provisions will continue to be advocated from the well of the legislature as the next budget is brought forth.
We need to remain vigilant. We have a contract and we are going to enforce it through 2027.
There will be more to come as the budget debate stirs up again.
-9/18/17