Who are Connecticut’s neediest, Medicaid beneficiaries or state employees?
According to fearmongering State Democrats, the shift of Medicaid spending from Uncle Sam back to the states will overburden the State with many additional hundreds of millions of annual state spending. If so, where will the state find hundreds of millions for simultaneous raises for state employees?
State labor unions want to grab their money before that conflict becomes apparent.
Bargaining unit by bargaining unit, the State Employee Bargaining Alliance Coalition (SEBAC) is declaring an “impasse” and seeking arbitration, supposedly because they are working without a wage contract after the 2022 contract expired on June 30.
Yet, in fiscal 2022, SEBAC worked without a wage contract for nine months. The wait paid off, because Lamont caved and gave them everything they wanted and more. Why the hurry this year, if not to avoid the unflattering comparison between their money grab and funding for people in genuine need.
SEBAC would rather everyone forget that union members in SEBAC’s 30+ bargaining units have received an eye-popping 33% pay raise during six years under Governor Lamont, meaning a worker making $100,000 on Lamont’s first inauguration day is making $133,000 today.
SEBAC would have everyone ignore that over half of their members have the contractual right to spike overtime, i.e. amass enormous overtime that is included in pension calculations – with the result that workers in some agencies are retiring with beginning pensions that are 35% higher than their last salary. In January, one Corrections worker retired with a $152,703 beginning pension on a last salary of $109,996.
SEBAC would rather that everyone proceed in ignorance of the fact that state employee health care benefits on the job and in retirement are tied for the most generous among the 50 states. And they have the second highest wages among the 50 states.
Instead, the unions are busy reminding everyone of all their past “sacrifices” and “givebacks,” which are really “never-should-have-had’s.” Until 2013, state employees paid zero towards their own retiree health care benefits. Now, they make a very modest contribution. While the contribution to their own pensions by non-hazardous-duty employees hired before 2017 has doubled from 2% to 4% since 2014, that is well below the median of 9% for the 50 states. State employees also receive Social Security retirement benefits, which state workers in many other states do not.
SEBAC unions are complaining about staff cuts. Yet, staffing re-attained pre-COVID level almost two years ago. If productivity is an issue, perhaps reconsider workers’ right to work at home four of five days a week, a work rule confirmed by a labor arbitrator. SEBAC claims that state employees are more productive at home… of course, without them commuting to work, there is less traffic congestion and climate-damaging emissions, our paramount public policy goals, right! If recruiting is actually a problem, offer signing bonuses – at a fraction of the cost of a general wage increase.
Lamont is feeling the squeeze. Ever the smart negotiator, back in April, he promised the unions raises “every year I am here,” taking off the table even the threat of a wage freeze, such as his predecessor, Democrat Dannel Malloy imposed three times.
Lamont’s answer to the competition between SEBAC and Medicaid beneficiaries, is to draw down the rainy-day fund. Yes, there is about $4 billion in the RDF, but what happens if it really rains?
Moreover, by law, special contributions to the state employee pension fund via what’s called the Volatility Cap can only be made after RDF funding is fully replenished. So, Lamont would be reversing the “pension progress” about which he has been crowing.
Even with $6 billion in special deposits, pension progress has been minimal, because pensions are based upon wages, and, when wages go up 33%, so do future pension liabilities. In fact, future pension liabilities have increased $9 billion, or 26%, in the first five years under Lamont from $34 billion to $43 billion. We don’t know the figure yet for the sixth year.
If all of this strikes you as outrageous, you are not alone. Everyone who hears the truth about Connecticut state employee wages and benefits is outraged. So, no one in Hartford wants the public to know the truth. SEBAC can count on the absolute loyalty of union-friendly Democrats holding supermajorities in Hartford. Others fear that, if the public knew the truth, the citizenry would rise up and demand change.
That would be awkward, since change is virtually impossible. State employee compensation is a rigged game. By law, labor contracts must be submitted to, and approved by, the General Assembly. But, if they are rejected, or not voted upon, they are sent out for arbitration, not for renegotiation. Democracy in action: the largest item in the state budget is decided ultimately by one unelected union-friendly arbitrator. No legislator need cast a vote, which is convenient since, someday, the public may discover the truth and resolve to “throw out the bums” who approved this gravy train.
Medicaid beneficiaries will lose benefits before state employees lose a dime. Or taxes will increase.
Red Jahncke is a nationally recognized columnist, who writes about politics and policy. His columns appear in numerous national publications, such as The Wall Street Journal, Bloomberg, USA Today, The Hill, Issues & Insights and National Review as well as many Connecticut newspapers.