With just a few days remaining in the current legislative session, there is a scramble at the Capitol to balance the 2015/16 budget shortfall and the projected 2016/17 budget shortfall.
Updated revenue numbers fall short of expectations by roughly $40 million. That sets the current fiscal deficit at $250 million and pushes the FY16/17 defecit to a projected $950 million.
The Democrats released a budget on 4/28 which was quickly rejected by the Governor and essentially died over the weekend. That budget proposal was very impactful to A&R as it targeted A&R Staff Attorneys for layoffs and moved all A&R Staff Attorneys to the Office of the Attorney General. Our lobbyist quickly responded to this proposal and was assured that the Governor's Office was against the transfer and the Office of the Attorney General was against this move as well. Ultimately, the entire budget proposal was abandoned and talks have stalled.
Highlights of the Dem's budget relating to State Employees is a bit eye-opening. Although the Dem's budget only mentions "non-union employees", you can certainly connect the dots to understand that there will be a push to have all employees agree to the same terms. The Dem's proposal would increase the employee's share of Health Care premiums, increase employee's health care co-pays, and impose a wage freeze (through the elimination of $60 million for Salary Adjustments).
There will be an effort to get a budget in place by Wednesday 5/4 but it doesn't seem likely to happen and potentially a special legislative session may need to be called. Continue to contact your State Senator and Legislator and let them know that you want a fair budget that doesn't weaken the middle class in CT.
The Dem's Budget Proposal and how it would impact State Employees:
- Reduces personal services lines in numerous agencies
- Caps nonunion state employee pensions at $125K
- Increases legislator and nonunion employee health care premiums to 17%
- Increases legislator and nonunion employee copays 20%
- Establishes a nonunion employee wage freeze
- Cuts $62M from Reserve for Salary Adjustments Account
- Restores the Contracting Standards Board and funds it at $275K
- Centralizes and reduces legal staff, agency spokespeople, and legislative commissions staff
- Cuts $28M in Judicial Department personal services
- Cuts numerous other Judicial Department line items