Connecticut Governor: Pass State Budget Without Union Concessions

by Dr. Susan Berry

Even as other liberal states face the music of unfunded union pensions and benefits, Connecticut’s governor plans to do things his way. Democrat Governor Dannel Malloy, and his majority in the state legislature, have agreed on a budget that will represent the largest tax hike in the history of the state. The fact that the constitution of the state of Connecticut requires a balanced budget also seems a minor detail to Malloy, who initially said he would balance his two-year, $40 billion budget by obtaining $2 billion in concessions from the state’s unions. The only problem is that Malloy wants his leaders to pass their budget with no union concessions on the scene. And Governor Malloy wants it now.

Malloy’s governing philosophy is in stark contrast to that of neighboring New York governor, Andrew Cuomo, a liberal, but pragmatic Democrat, who insisted on a budget that did not raise taxes yet demanded, and received, union concessions. Similarly, fellow New England states, Massachusetts, which recently voted to restrict collective bargaining, and New Hampshire, likely to become the 23rd “Right to Work” state in the nation, are clearly moving in step with the rest of the country, by addressing the costs of unfunded public sector union pensions and benefits, as well as the conflict-ridden collective bargaining system.

Malloy, however, has openly bragged about his willingness to spend several weeks in packed town meetings, listening to irate citizens of the Constitution State complain about his budget plan. He and his majority party are clearly cut from the same Obama administration cloth that is inclined to ignore the will of taxpaying citizens, while it attempts to instill guilt with the all too familiar phrase, “shared sacrifice.” To them, “shared sacrifice” means that Connecticut’s taxpayers, already among the highest taxed in the nation, will be paying an average increase of $3,000 per family annually to their state. This amount represents tax increases on income, sales, gasoline- up 3 cents per gallon, alcohol- an increase of 20%, cigarettes, an “Amazon” internet sales tax, as well as a lowering of a $500 property tax credit to $300.


Businesses in Connecticut shouldn’t feel left out. The Malloy-Democrat plan doubles the surcharge on the corporation tax from 10 to 20%. The tax plan joins the new mandatory paid sick leave bill as reasons for Connecticut businesses to flee to other states, like New York and Rhode Island. Ironically, one of Malloy’s stated reasons for passing the budget ASAP is because the business community needs “certainty and clarity and transparency” about the state budget.

But what about the union concessions? Taking another cue from the “transparent” Obama Democrats, Malloy is reporting that he and union leaders are having “talks,” behind closed doors, the nature of which are allegedly unknown even to Democratic leaders of the legislature.

The lack of union concessions is not at all unexpected to many Republicans and conservatives in Connecticut, since Malloy only won his election by a narrow margin due to an outpouring of funds and support from the state’s unions. Malloy has openly admitted to the unions, “The reality is in many ways, I won this election because of you…And I’m proud of that.”

Although a bit late on the scene, Connecticut Republican leaders came forward with their own budget, which raised no taxes, cut spending, but still included the “phantom” union concessions. Like the Pelosi-Reid Democrats, however, Connecticut Democrats simply dismissed this budget, and now stand poised to push through an historic tax plan, with no known union concessions. Sounds like they want Connecticut taxpayers to let them pass the bill first, then see what’s in it.


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Posted Apr 30th 2011 at 2:17 pm in Big Labor, State Government, taxes | 50 Comments