$1.5 Billion in SavingsJuly 25, 2017
The state House of Representatives took a significant step toward solving the state’s fiscal crisis by securing a crucial piece of the budget puzzle – ratifying a concessions deal that is expected to save taxpayers $1.5 billion over the next two years.
For months, we have been working toward negotiating a concessions deal that will help the state address a $5 billion deficit. This historic deal will put Connecticut on the path to financial sustainability.
Under this labor deal, the State Employee Bargaining Agent Coalition has agreed to zero wage increases for three years, higher health co-pays and premiums, and three unpaid furlough days in 2017-18.
This deal is expected to save Connecticut $700 million in direct costs in the coming fiscal year and more than $800 million in the following year and involve structural change that will work for the state into the future.
Some argue additional union savings can be generated. In fact, these assumed imaginary deals do not yield fiscally responsible budgets.
Not only do Connecticut statutes specifically provide for collective bargaining – through a coalition representative – for health care and pensions, but this is the most responsible way to address our budget crisis.
For the past six years, however, our state government has reduced its workforce by several thousand. We have created a leaner, more efficient state government.
This labor deal is the first step toward solving our budget deficit, one puzzle piece at a time.