State Employee Concessions ApprovedAugust 4, 2017
Over the past week the state House of Representatives and Senate took a significant step last week toward addressing the state's fiscal challenges by approving a crucial piece of the overall budget puzzle - ratifying a state employee concessions package deal that is estimated to result in $1.2 billion worth of savings over the next two years and $24 billion over the next 20 years.
Here is some back ground on the agreement:
The plan was limited to negotiation between the Governor's Office and the State Employee Bargaining Agent Coalition also known as SEBAC. The role of the legislature was to approve or disapprove the concession package. This agreement will help stabilize Connecticut's finances in the short-term and provides us some clarity on the long-term challenges we face after decades of inaction. The agreement passed in the House in a 78-72 vote.
Under this agreement, SEBAC has agreed to zero wage increases for three years, higher health co-pays and premiums, and three unpaid furlough days in 2017-2018. This deal is expected to save the state approximately $700 million in direct costs in the coming fiscal year and more than $800 million in the following year. Here are two editorials on the topic which offer a prop and con perspective:
We will now move forward to address the remaining pieces of the overall state budget.