Democratic governors in New York, Pennsylvania and Virginia are temporarily suspending raises for state employees or freezing pay until they can better understand the fiscal impact of the pandemic, but, thus far, Connecticut state employees are still scheduled to receive a second pay increase, projected to cost taxpayers $353 million.
The second round of wage increases is set for July 1, the start of the 2021 fiscal year, and is comprised of a 3.5 percent general wage increase, combined with an annual step increase of 2 percent.
The raises were included in the 2017 SEBAC agreement negotiated by Gov. Dannel Malloy. The Office of Fiscal Analysis estimated the total cost of the raises at $353 million, although the actual annualized cost may be as high as $387.8 million.
The wage increases in July will be the second increase for state employees in two years.
Under the terms of the SEBAC agreement, state employees received a one-time $2,000 lump sum bonus in 2018, followed by a 3.5 percent general wage increase and 2 percent step increase in July of 2019.
The average full-time state employee pay in FY 2019 was $71,806, according to the CT Data website. In FY 2020, the average salary had increased to $74,508, although the fiscal year doesn’t end until July.
OFA’s budget analysis for fiscal year 2021, noted the budget included additional funding of $236 million to cover the wage increases, but Connecticut’s budget projections have already dropped as the economic impact of the COVID-19 virus begins to take its toll on state finances.
The steep stock market drop-off combined with the forced closure of non-essential businesses, decreased economic activity and skyrocketing unemployment claims will likely leave Connecticut in difficult fiscal situation.
Gov. Ned Lamont said the deficit could reach $1.9 billion between this year and next, and the state cannot lay-off employees covered under the 2017 SEBAC Agreement until July of 2021.
The state currently has $2.5 billion in its reserve fund and received a disaster declaration from the Federal Emergency Management Agency, which will help cover a majority of state agency costs associated with handling the pandemic.
But the state also faces a depleted unemployment insurance trust fund and rapidly rising fixed costs related to retirement benefits, bonded debt and Medicaid. The 2008 recession saw a steep uptick in Medicaid costs for supporting those who were out of work.
Connecticut is also hoping the federal government will help cover unemployment payments for the state, but the fiscal effects of the pandemic and shutdown — and how long it will last — remain largely a matter of speculation.
Governors across the country are bracing for the fiscal fallout of the pandemic.
As unemployment claims dramatically increase, numerous businesses remain closed and the prospect of a large budget deficits become a reality, governors are having to pull back on implementing wage increases.
New York government officials confirmed on Thursday that Gov. Andrew Cuomo delayed a 2 percent raise for state employee raises for 90 days. The negotiated raises were set for mid-April and Cuomo’s move drew ample condemnation from New York’s public sector unions.
Virginia Gov. Ralph Northam has delayed action on state employee and teacher raises, waiting to measure the fiscal fallout of the pandemic and shutdown. “We got to wait for the fog to lift to make budget decisions informed by facts and data,” Northam’s chief of staff, Clark Mercer, told WSLS in Virginia.
Pennsylvania Gov. Tom Wolfe froze the pay of 9,000 nonessential state employees, saying they will either have to use sick and vacation time or file for unemployment. Wolfe said the move was necessary due to the “unprecedented situation that has created fiscal challenges for employers including the commonwealth,” according to Fox 43.
Public-sector union leaders have expressed concern that governors could use the pandemic and executive order to suspend some collective bargaining agreements.
According to a report from the American Federation of Teachers, “it is easy to imagine an unfriendly governor exploiting a declared emergency to undermine a state’s collective bargaining law entirely.”
Gov. Ned Lamont has ordered that employees deemed non-essential by management work from home, although it is unclear how many have the ability to do so, based on a March 22 email sent by Lamont to executive branch employees.
“We know that these actions will result in some of you continuing to work in challenging circumstances while others are sent home, and that some at home will continue to telework while for some others that will not be possible,” Lamont wrote. “If you are among the employees whose managers determine do not have the ability to continue your state work, please find other ways to serve our citizens.”
The majority of state employee union contracts granting the pay increases were agreed to in Malloy’s 2017 SEBAC Agreement.
Although the SEBAC Agreement governs retirement benefits for state employees, the bargaining unit contracts containing the wage increases were each signed separately.
Lamont’s emergency powers allow him to temporarily suspend legislative actions and regulations. Both the SEBAC Agreement and labor contracts required legislative approval.
Lauren
April 13, 2020 @ 1:05 pm
We, CT ESSENTIAL/Law Enforcement are the only ones working. It’s unthinkable to penalize us further by delaying our salary increases when we are keeping the state moving. Maybe delaying increases for administrative staff or those not working would be something to evaluate. However, not for those of us on the front line everyday.
John
April 14, 2020 @ 6:49 am
Agree. Any state employee on front lines should receive the pay increase. Any state employee not considered essential or on the front lines should NOT receive, or at least have it delayed 6 -12 months to reevaluate the state financially after the pandemic. There will be so many companies that will have closed, and a large unemployment. How will the state recover and try and get back on budget? It looks bad for raises to happen when so many have lost jobs, or closed their businesses.
Ed
April 15, 2020 @ 1:02 am
Agreed. Contracts were negotiated in good faith. These people, funded through a chain of “institutes” that lead back to the Koch Brothers, want to fuel anti-union and anti-public sector employment, so that they can privatize everything, ignoring that evidence has shown that privatizing services end up costing taxpayers more money in the long run.
Jamie
April 14, 2020 @ 8:44 am
NOBODY in the private sector is getting a 5.5% raise on July 1. The economy took a major uppercut to the jaw. Once again, we see that in this state, public union workers are immune from the economic realities that those in the private sector (who pay for everything the public sector gets) must contend with. It just never, ever stops in this state,
Ed
April 15, 2020 @ 1:03 am
Sadly, the one percent continue to receive massive tax breaks at the expense of the middle class.
Sebastian R Papa
April 13, 2020 @ 2:49 pm
Governor Molloy, in my opinion seems to be on top of the situation.
I agree with his philosophy.
Brian g
April 13, 2020 @ 5:35 pm
Disgusting. As tens of thousands in the private sector are losing their jobs and livelihoods due to Covid, the bureaucrat Marxists continue to get paid and fat. Where are the layoffs for them??? Sickening. I literally despise all these people.
Brian G in the place to be.
April 14, 2020 @ 10:33 am
It’s comical that you would call the public servants you rely on most marxists. You forget about the basic jobs you would never be willing to do. Emergency services, law enforcement, corrections. The sacrifices many of these people have made will never see the light of day. Then an article like this is posted and you chop at the bit to call us fat greedy people. Brian I hope one day you desperately need any of these services and they are there. The reason they are there is because these jobs aren’t glamorous so some incentive is given to entice people into them. Most of the time after you sign up for the job you start sacrificing those incentives that made the job worthwhile in the first place. I hope the world finds you well Brian. Thanks for your time.
SteveHC
April 14, 2020 @ 11:57 pm
So now your medical, psychiatric, police, guards and all other front-line “heroes” who risk contracting this coronavirus and thus potential death through their work-required daily contact with the public are now suddenly “fat Marxists” who you “despise” because they are to continue to b paid for their work?
And what of the similarly situated supermarket and pharmacy employees – are they too “despicable fat Marxists” in your eyes as well?
And what of the municipal, federal and state government employees who must work tirelessly day after day to see to it that you receive your unemployment funds and other government benefits? Are they too “despicable fat Marxists” to be “hated” by you as well?
Exactly who is the despicable one in this scenario?
Wow
June 1, 2020 @ 3:06 pm
If you dont know facts, shut up!! Which apparently few of you do!!! If you have completed your steps because you have worked for several years, the steps end! Most state workers get paid wayyyy less than other hospitals to compensate for our ins benefits!!! Very grateful for those! But i pay almost 10, 000 a yr for ins. Sooo bottom line you aint in it dont spin it!!!! Concentrate on yourselves and making this world a better place instead of bashing everyone and everything! Wow! If you think working for the state is so grrreat shut up and go work for it! Ha!! Instead if complaining about raises we dont everrrr get!!! Or about pensions we dooo pay into! Btw! Stupid people!!! Gtg! Crazy train has arrived!!! Cant to see what ya ll all look like!!! Lol and!!! Not all of us get the “free u uconn tuition” ! Just another ignorant comment from the peanut gallery!:) peace!
Scott Keiras
April 13, 2020 @ 6:02 pm
I agree with giving raises to only those working through pandemic emergency. All else are on hold.
anonymous
April 13, 2020 @ 6:52 pm
Connecticut is on an unsustainable fiscal path. The wage increases should be postponed.
Dan
April 14, 2020 @ 10:05 pm
Really you are a ass if you don’t like It here. Move we don’t need useless body’s taking up space here
Bill
April 13, 2020 @ 7:30 pm
As a nurse right now I’m being heralded as a HERO. Me and my co workers, working the COVID-19 epidemic, putting ourselves in jeopardy, Nurses, Doctors, MA’s, CNA’s, Rad. Tech’s, Respiratory Therapists, PT/OT, Case managers, Emergency Dental instructors, and all the other job titles that make it possible to care for the public.
But I’m a state employee that works at UCONN Health. I’m still a nurse, still being called a HERO right now. However, you at the Yankee Institute think you should take away a pay raise that was negotiated in good faith. My last 10 years have had zero wage increases in 6 of them.
Mike
April 15, 2020 @ 9:11 am
Funny how nobody mentioned the fact that state employees went several years with no increases either cost of living or annual incriminate
Anonymous thinker
April 14, 2020 @ 9:19 pm
It is amazing how some see what they want and have oversight of so much. There have been times when state employees do not get raises for years outside of this pandemic. State employees pay the same taxes or more than the people residing in CT that chose to work in the private sector. State employees are deemed essential and have to deal with precautions and cautions in the same pandemic as others, child care, elderly care, and other issues during this crisis. The contract was deemed appropriate prior to this unfortunate circumstance. “Public servants” should not always be penalized for political decisions, crisis and other situations outside of their control. It is an unprecedented time that was not caused by state employees. Give state employees what has been “essentially” granted to them in that 2017 agreement of 3.5%. 3.5% increase to some of these employees may only had 30 cents on an hour. Let us have some humanity.
Joe
April 15, 2020 @ 6:18 am
Another State fiscal catastrophe but this one not seen in 100 years. Prior this, the State was struggling to balance the books and now, close to financial collapse. The State Union’s reaction – “where is our raise”! Here is an idea – go on strike! There are thousands of laid off private sector people who would love to have your coveted positions.
Geri Curtis
April 15, 2020 @ 1:25 pm
I would have loved to work for the state because of the benefits that go with it. I had 3 kids to go to college. They could have gone for free or close to free. Every time I saw a job that I was qualified for, I didn’t get it. Someone from inside decided to go for the job and they have first priority. The jobs they were leaving, well I was over qualified for some of them. Also, I don’t have any relatives working for the state – that’s always a big help too. And don’t say it isn’t. I have friends who work there – first the father, then the mother, then the son and daughter both got jobs right out of high school. And what company gives out the raises or the benefits that a State worker gets?
I worked for a local hospital for almost 30 years. When I retired, I got my pension and that’s all. I left with a half a year’s worth of sick time couldn’t take any sick time or vacation after I gave notice. Can you say the same?
Our state is in crisis mode right now……
Kitty
April 19, 2020 @ 10:58 am
That’s not how it works. It sounds as if you gave up too easily and are bitter.
S. Nic
April 15, 2020 @ 9:04 am
Only only only those working on the front lines of fighting this pandemic (medical, fire, police) are entitled to a raise. How can you be proposing such a mammoth comprehensive outlay of $ for state workers at this horrifying time when a widespread disease is crushing our economy and is being especially devastating to the front line workers and the very poor among us. COME TO YOUR SENSES, YOU POLITICIANS! If YOU benefit in anY way from this proposed pay wage, you will be voted out of office. PEOPLE ARE OUTRAGED by this arrogance and self-serving plan!
Johnny D'Bello
April 15, 2020 @ 9:13 am
As a state worker, whose job it is to investigate children being abused, I sure as hell deserve that raise. The cases I’ve seen, the children I’ve seen, the stories that I hear every single day if my life…you would throw up just hearing about them. Dont tell me I dont deserve a raise, after NOT getting a single cent of a raise for almost 7 years. Yeah, I’m taking my 3.5%. And guess what?! That 3.5% is taxed! Yes! State employees pay taxes too!
Did you NOT know that? Naivete and complaining is what most people in CT do best though. And besides that gact, the raises were part of our contract. We have up an awful lot in that 2017 CBA after having already given up an awful lot in a 2013 CBA. If you had a contract saying you were to get one raise after nothing for 7 years, then when it came time to finally get that raise and were told nope, would you be ok with that? Would you just say “ah oh well. Maybe next time. ” do you realize that state employees also have families to support and bills to pay, and living on the same wages as we were in 2013 is pretty unsustainable when costs for EVERYTHING else has increased? Dont blame us, dont complain about us. We work hard for YOU even though you dont seem to know it. And if your kid kne day becomes a state employee, what will you have to say about them then?
Fred Yopp
April 15, 2020 @ 12:17 pm
I totally agree with you on this Johnny, I myself is a State employee. We as State employees already gave back enough. And we are entitled to our raises just like the contract stated. We as State employees give a good service to the public, and with out State employees that won’t happen.
Fred
April 15, 2020 @ 12:24 pm
I totally agree with you on this Johnny, I myself is a State employee. We as State employees already gave back enough. And we are entitled to our raises just like the contract stated. We as State employees give a good service to the public, and with out State employees that won’t happen.
Anonymous
April 16, 2020 @ 1:02 am
Agreed! Whenever there is a deficit. The solution always seems to fall upon the state employees. Yet, out taxes continue to increase as does the cost of living. We’ve gone several years at a time without raises. They should honor the agreements. Sadly, they will just raise taxes either way.
Dave
May 6, 2020 @ 9:17 pm
Vote the party out of office, that has not happened even though they can’t control the budgets.
Marie Kobus
April 15, 2020 @ 10:30 am
Governor Lamont needs to freeze these state wage increases along with the annual step increase with his now “emergency powers”!
Also a great time to renegotiate the current union’s “collective bargaining” agreement. This would save our whole state!
Kitty
April 19, 2020 @ 10:55 am
Where do you work?
Judy
April 20, 2020 @ 1:25 pm
And then another round of lawsuits similar to the Rowland lawsuits would happen and the state would be even farther in the red. You can’t keep opening and renegotiating contracts. How many times can this be asked of us. The public needs to understand the benefits are nothing like they were 30 yrs ago. We are just paying the price for it now, but we have given back a lot! and brought to the table many responsible ideas to reduce costs. It’s unfortunate that all the facts aren’t truly know to the public…I went 5+1/2 yrs with no raise….I work and deal with inmates for the last 15+yrs. you know what will save our state? If our government stopped lining their pockets and interests and actually did what they are suppose to do!
Joe
May 2, 2020 @ 6:48 pm
At what age are you eligible to collect retirement benefits. ?
Lesa Anne Worthington
April 15, 2020 @ 7:15 pm
In this current economic time; with my husband’s company taking 20% cuts company wide, Really??? my tax dollars and for what? Did anyone work longer hours, do something incredible to stabilize our economy? Effective plan for highways, road, bridges??? Why is everyone leaving CT… well here you are. And when the high paying tax people leave they they stability of the state will weaken.
[email protected]
Shannon
April 16, 2020 @ 5:43 am
State Correction officers are essential Frontline workers. They have sacrificed alot from our initial agreed upon contracts. This article was written to persuad people to think state workers are the problem of deficit. They are not, the facts left out such as the how they did not get a raise for 4 years, missing step raises previously promised. They pay an exceptionally higher amount into pension plans. They do not take home large paychecks but work in some of the harshest environments. Do not make judgment based off this biased article.
Kitty
April 19, 2020 @ 10:54 am
Agreed. The general public does not have a clue as to what a correction officer has to deal with on a daily basis and we have to because we have families to provide for.
Barely Breathing
April 16, 2020 @ 7:59 am
At least they’re working. Who, among us dependent on the good will of private employers, is still even getting a paycheck? So the circle will tighten around the necks of those still fortunate enough to receive wages to have that wage tax raised again. And who is going to fund the payroll tax that’s going to be used to fund universal sick leave? Any wage increase should be taxed at 100% to fund unemployment payments to the rest of us. And the shell game can continue.
Runner
April 16, 2020 @ 12:35 pm
To all those state employees saying they deserve it and they are not making enough money – well you are more than welcome to go out and find another job if you think that your experience and the work you do is so valuable and you can get so much more if you worked in the private sector. But something tells me that you would not do that since you would rather be comfortable complaining.
Kitty
April 19, 2020 @ 10:52 am
Where do you work?
Thad Stewart
April 16, 2020 @ 4:51 pm
WOW, the dumbo cratic party really wants to financially ruin this state beyond any possible recovery. I really hope my fellow statesmen wake up in November and get rid of these fiscally irresponsible people. When are the republicans gonna grow a set?
Virgil
April 19, 2020 @ 1:07 pm
Connecticut union employees are compensated at 25 to 45 percent more than their private sector counterparts and if Governor Lamont doesn’t take advantage of the current fiscal crisis to address this he’s a one term governor no better than his Socialist, Marxist predecessors. Politicians have bought so many votes from this group for so long that they think they deserve 12 paid holidays, free or low cost healthcare for themselves and their family for life and the list goes on and on. Meanwhile, as their compensation exceeds 30% of the state budget, businesses close down and move out of state,
state highways and bridges deteriorate and state taxpayers struggle with the unsustainable fiscal burden and pay the highest taxes in the country, union employees are clamoring for a 3.5 % raise. I’d offer them the choice of a voluntary 30%
across the board cut now or a mandatory 50% across the board cut when their outrageous contract expires. Take it or leave it. Other states are suspending collective bargaining restrictions and if Governor Lamont has any sense of common decency he’ll do the same.
John-Paul Jones
April 24, 2020 @ 6:19 am
Want to save money? Take the patrol cars away from the state police. They initially brought them home because there were areas where only a couple of officers patrolled a large area and might require help, those days are over. Between gas and maintenance we would save millions. Also look at the salaries of the state retirees, there are many that make over $200,000/ year when their annual working salary was under $100,000. That’s just wrong! But as long as nationalists like lamont benefit from this, it’ll never change!
Jack C
April 24, 2020 @ 1:52 pm
Agree! And step increase and another raise on top of that is ludicrous! A raise on a raise, give me a break!
R Squared
April 19, 2020 @ 6:00 pm
The value of the raises in FY 21 is not $351.8 million as is reported. The value of the raises in FY 21 is $195.6 million, the difference between $351.8 million and $156.2 million.
Anon
April 20, 2020 @ 6:58 pm
There was no wage increases for 6 years, possibly 1 in 12 years? This was supposed to make up for that.
Jack C
April 24, 2020 @ 1:54 pm
Hey anon: I think u are forgetting your step increases. Be truthful.
Elisa Villa
May 9, 2020 @ 8:52 pm
Our step increases were frozen as well,. We also had multiple furlough days, increased health and pension payments, and layoffs during the past several years. It’s the wealthy individuals and corporations who are robbing the state, not the working class public sector.
Samantha Perrelli
May 11, 2020 @ 11:09 am
What step increases? Who isn’t being truthful? I’ve worked for state for 12 years and never had a step increase. Check your facts!
Roberta
May 1, 2020 @ 11:57 pm
Not sure were previous posters got figures like State Employees make 30% more than we would in the private sector? With a Masters Degree, I make far far less than I would working for Pfizer or Merck. And as for step raises given just for showing up? Then why is my gross salary now about 5% less than it was four years ago? Furloughs and deferred raises have taken their toll.
Good healthcare, a living wage…everyone deserves that. Everyone should be unionized, and Hartford and Washington should be swarming with union lobbyist.
Anna Elizabeth Jensen
April 20, 2020 @ 10:19 pm
Time to lay off DAS unfair & stonewalling HR officers who blacklist, & let managers hire their own incredible staff.
Time to privatize Dept. Aging & Disability & Rehabilitation agencies finally so we get transparency, efficiency, more humane approach.
Time to break up the family agencies & employees that help other family members & friends into state jobs over other competent candidates.
Jack C
April 24, 2020 @ 7:31 am
One comment: The state workers who say they have not gotten a raise in years are not being transparent. Even with so called ‘zero’ raises, you get a raise each year from your step increase. You show up the next year, you get a raise from being on the next step, just for showing up! That step increase would be considered a raise in the real world!! Call a spade a spade!.
Elisa Villa
May 9, 2020 @ 8:48 pm
on The other hand, public sector wages force the private sector to be competitive. The public sector serves to elevate the private sector’s wages and benefits. Instead of seeking to lower working class standards (which is exactly what the Yankee Institute promotes) you should be supporting higher pay and better benefits for all workers. The billionaire class relies on this sort of misplaced resentment to maintain its financial position.
Annoyed
May 24, 2020 @ 11:52 pm
Steps were also frozen while raises were frozen. I’ve worked for the state for eight years and just got to my fourth step this past January. Clearly, you are misinformed.
Maura
June 18, 2020 @ 5:38 pm
We got no step increases or cost of living increases for many years. I have been a state employee for 10 years and received two raises. One last year (which was a combined step and cost of living), and one step (it was so long ago I forget, maybe three years in..) other than that my pay has been static and with the cost of living continuing to rise, I am substantially less well off than I was when I started. Also, as others stated, our contributions have steadily increased. The contribution increase immediately following the 2019 raise, made it so I now make less than I did in 2018.
Anthony Volpe
April 24, 2020 @ 9:02 am
I am a front-line healthcare worker and I am going to say it the way it is. We have gone through furlough days without pay, no pay increases for as long as 5 years, increases in healthcare premiums, pension contributions, etc. Incidentally we PAY for our retirement benefits upfront while we are working so we will have health care in retirement. It is NOT given to us free.
I work for DMHAS, and we can NOT recruit any doctors because the salaries are only 55-60% of the private sector and the benefits for new hires have been reduced to a 401K with NO guarantee of a match and you must work 15 years for a watered down medical plan.
We have trouble recruiting other health professionals such as nurses and pharmacists due to sub market pay and benefits.
Don’t tell us that we don’t deserve a raise when we can’t even get candidates applying for open healthcare positions due to inadequate pay structure.
We take care of the mentally ill population that other private health care systems will not due to inadequate insurance reimbursements OR the severity of their illnesses. We are dedicated to this population and it isn’t just about the money BUT we DO deserve to be justly compensated for what we do.
Dee
April 24, 2020 @ 1:41 pm
I agree. I’m tired of the state workers getting better benefits then healthcare workers. Roland gave them a sweet deal. It’s time to reverse or halt their benefits. Who gives healthcare benefits to employees and their spouses when they retire? The state of Connecticut does that’s who. I don’t get that benefit. A lot of people don’t. That’s why our taxes are so high. Cut some of that extra overtime and benefits so our taxes can go down or else you won’t have anyone left in the state to pay those outrageous taxes.
Roberta
May 1, 2020 @ 11:50 pm
As a State employee, I was doing my taxes this year, and realized not only has my annual income decreased each year by about 2% for the past four years (between furlough days and deferred cost-of-living increases), but I’m now paying additional deductions towards my own healthcare as well as for employees that have already retired. I also pay a substantial amount toward a pension that will pay me about 1/3 of my salary if I retire after 25 years. I could have made so much more in the private sector. So tired of State Employees getting bashed. We are working from home, keeping things organized and ready to start up again once the Governor gives the OK. I pay around $9,000 a year for my healthcare; no one is giving it to me. And it’s really not very good anymore. With all the deductions taken from my paycheck, as well as federal taxes, I net about 60% of my gross pay. Not good.
Buddy
May 9, 2020 @ 12:15 pm
Hahaaa, you’re still blaming Rowland? That’s rich He’s been out of office for over 20 years. Who was running the show since then? The democrats. Who’s allowed a welfare state to grow? The democrats. Who invited muslim refugees into Ct? All on welfare The democrats. Stop blaming the employees for what was negotiated.
Elisa Villa
May 9, 2020 @ 8:40 pm
That’s not why your taxes are high. Your taxes are high because very wealthy individuals and corporations are not paying their fair share of taxes— locally or federally. As a result the middle class carries the entire state and federal tax burdens. Look at who is behind the Yankee Institute-its the 1%. The Yankee Institute is not a credible source of public sector financial information— it always presents an entirely one-sided inaccurate portrayal public sector wages and benefits— never mentioning all the extraordinary financial and personal sacrifices state employees have made over the past two decades. And of course it never explores the extravagant wealth of its owners and supporters— the ones who are the real financial parasites.
Elisa Villa
May 9, 2020 @ 9:08 pm
Instead of seeking to lower everyone’s standard of living, including your own, would it not be smarter to demand better private sector wages and benefits? Unionizing will help you achieve that goal. Your resentment of public sector wages and benefits is misplaced. You deserve the same wages and benefits as public sector employees.
Elisa Villa
May 9, 2020 @ 9:10 pm
Exactly!
Anonymous
May 20, 2020 @ 10:42 am
Most of the problem is related to the greed of unions when Tier 1 contracts were instituted. If pensions had been capped at the Social Security maximum and retirees had been obligated to either pay to keep their benefits or settle for the very stripped down plans of current employees, the state would probably be solvent. Current employees are subsidizing the retirees in what has become a giant Ponzi scheme. A state employee with an official salary of $90,000 probably only clears $60,000 and will end up with a pension of around $24000. State employees currently pay more for their retirement benefits than they will cost because that money is used to subsidize the jaw dropping pensions and benefits of retirees, many of whom contributed nothing to their pensions or benefits. The union representatives are often acting more as representatives of the retirees than of the current employees. There is, unfortunately, always “waste, fraud, and abuse” in bureaucracies, because they are isolated from market forces, but most state employees are like rank and file members of the military bureaucracy– they get very modest salaries and benefits to cover for a small elite that runs off with the lion’s share and live extravagantly. They keep quiet about it, because the greed of those on top made those who subsidize them absolutely dependent on the unions, for anything they can keep. Many state employees are extremely hard working, and many cannot make over-time or do anything else to increase their salaries. Some are not– it is a problem inherent in being immune from market forces. In the end, a lot could be solved by using emergency powers and capping all pensions at the Social Security maximum, especially for retirees, and forcing a retroactive purchase of retirement health benefits, with the option of settling for the current Medicare package for the retirement of current employees. Most employees would be entirely unaffected. It is that top tier that has been bleeding the state and its taxpayers dry. Current employees are correct in that there is a limit to how much more can be extracted from them. They are trading a lot of income, benefits, and control over their lives for the security of state employment. It is security that private sector employees lack. The tension will probably never disappear as government employees will be more secure than those in the private sector, unless and until the economy implodes, which is not to be ruled out. It should also be noted that those in the top tier of the public sector are in the 1%. The unions are often representing people in the top 1% of the income scale and a sizable portion are in the top 4%. Arrangements for current employees (at least those who do not try to game the system) are not the problem– it is the waste, fraud, and abuse that resulted in a very unequal class-based system within the public bureaucracies.
Wow
June 1, 2020 @ 3:18 pm
Grreat stuff bill!!:) what a way to reward the frontliners!!!! Psych no raise for you!! Godbless you all! And godspeed with doing the right thing for all!!! Oxo
John
June 17, 2020 @ 8:13 am
How does the article fail to mention state employees got 0 raise in 2016, 2017, and 2018 as part of the deal to get raises in 2019 and 2020? Or that they took pay cuts (aka furlough days) in some of the years in which they got freezes? Nor does it mention that for 6 of the last 11 years they got zero raise. We should be trying to get raises for the rest of working people in CT rather than dividing working people. Hedge fund managers don’t need another yacht.
April Harlow
June 23, 2020 @ 6:24 pm
Furlough days are so bogus. Typical govt employee cry baby…..waaa, we had to take a furlough day. Most Fortune 500 companies have back 75% of all paid holidays, don’t get any cost of living raise….ever and maybe in 5 years get 20 cents an hour, TO KEEP THEIR JOBS….