In order to achieve your allotment of sacrifice, Connecticut’s state employees must provide $1 billion dollars in concessions this year and another $1 billion next year (on top of paying the higher taxes, etc. etc.).
So, as my advisor has told you, we have a plan but we can’t share the details with you.
However, since I share your pain and I am a friend to Connecticut's working men and women, I will give you the basic outline.
What we need to do is the following:
Freeze state employee wages – that will save the state budget $160 million
Institute 3 Furlough Days – saves $43 million
Reduce the state employee work week to from 37.5 to 35 hours (Excludes the 12,500 who work in 24/7 facilities and some state employees who already work a 35 hour week). It comes to about a 6-8% pay cut for those impacted but - saves $151 million
Make State employees contribute 3% to the State Employees Retirement Fund (I know many of you already pay into the fund but the public doesn’t know that so I need to make this point a big one) – saves $96 million
Put a cap on all cost of living adjustments for retirees – saves $46 million
Change the way pensions are calculated so that they are based on the employees top 5 years instead of the present system of using the top 3 years – saves $22 million
Increase medical premiums for all active and retires (some people say it isn’t legal for us to do this to retirees but they are wrong and I’m right) - saves $34 million
Now these “concessions” generate a total savings of $551 million. We only have $449 million to go:
So my first thought was to cut pay by 5% on top of the 35 hour work week cut and the furlough days – this would save $170 million but unfortunately, that leaves us $279 million short of what you need to give in order to meet your shared sacrifice amount.
So, forget the 5%. We need to do everything on the list above and then cut everyone’s pay by 10%. This saves an additional $330 million.
Problem is you are still short of what you need to meet your quota by $119 million.
It’s a problem, so what the hell, let’s go with the 10% pay cut and an additional 9 more furlough days on top of the 3 I already listed. That gets you to 12 furlough days.
And the good news is, you do all of those things and you’ve hit your mark.
Wage freeze, 10% cut in pay, 12 furlough days, 35 hour work week, higher pension payment and co-pays and a few other tweaks and we are done. It comes up to a pay cut somewhere in the range of about 20% but hey you are state employees – so it’s not like you didn’t know you weren’t going to be a target.
Of course, there is the alternative. We could do all those other things including the wage freeze, the 12 furlough days, the other changes and a pay cut of only 5%. The problem then is that I will have to lay 5,000 of you off to make the budget balance.
But as I said, my people are committed to a fair negotiation process, so which will it be. Do you want the truly massive pay cuts or just the really massive pay cuts and layoffs?
Look around, take your time and talk to your colleagues. No rush….
I just need your answer in the next couple of weeks or I’ll have to shred the state’s safety net and blame it on you and as you know, cutting vital services will do incredible damage to Connecticut’s most innocent and vulnerable citizens.
But really, it’s all up to you.
Like I said, we’re committed to fair negotiations.
I look forward to hearing from you soon.
And remember, I'm your governor so stop by anytime.