Malloy, Urged Not to Cut Aid to Town, Pushes Ahead With Layoff Plan

The Connecticut Conference of Municipalities is urging Gov. Dannel P. Malloy not to cut state aid to towns if he implements a deficit reduction plan in the wake of the anticipated rejection of his budget-balancing deal with state labor unions.

In a letter today to the governor, CCM Executive Director James J. Finley Jr. told Malloy that most cities and towns in Connecticut have already set their budgets and tax rates for the coming fiscal year, which begins July 1. Local property tax bills for the coming year will begin going out next week.

In his letter, Finley hints that cutting aid to towns and cities could destroy the good rapport Malloy has forged with local officials since taking office in January.

“During the regular legislative session, your steadfast resolve to avoid balancing the state budget on the backs of towns and cities and their residential and business property taxpayers set you apart as a governor.  It was the right thing to do then, and it is the right thing to do now,” Finley wrote. “You have, in less than six months in office, reinvigorated and transformed the State-Local Partnership.  Your partners at the municipal level ask for your help again as you undertake the difficult and wrenching task of preparing another deficit reduction plan.”

During a meeting last week with CCM leaders and members, however, Malloy warned town officials that if union rank and file members did not accept the agreement the governor forged with union leaders, all aspects of the budget, including aid to municipalities, would have to be revisited in order to close a $1.6 billion state budget shortfall.

The union deal has fallen apart in recent days as members of some of the state’s biggest unions have rejected the agreement. The Hartford Courant reported that Malloy pledged Friday to move forward with plans to lay off 7,500 state employees, as union leaders were formally announcing that their members had rejected the governor’s concessions package.

At least 14 of the 15 bargaining units for the State Employees Bargaining Agent Coalition, which represents over 45,000 state employees, would have to approve the agreement for it to take affect. 

Matt O'Connor, a spokesman for SEBAC, confirmed Friday that the concession agreement was essentially defeated, as two of the 13 bargaining units to have already voted on the governor's proposal have voted against it, but did note that approximately 60 percent of state employees that voted on the agreement voted in favor of ratifying it.

"So far, 11 of the 15 SEBAC unions have approved the agreement, and two have voted it down," O'Connor said by email. "Therefore the SEBAC tentative agreement will not be ratified under the coalition's strict rules." 

O'Connor said union leaders would meet Monday morning to determine their next steps, and urged "everyone to provide some space to let the process play out.”

During a legislative update to the Board of Selectmen earlier this week, state Sen. Kevin Witkos predicted the possibility of the union vote being defeated and expected a special session to be called. However, he did not think cuts in municipal aid would be supported by the legislature, especially since towns have already passed their budgets.

“That’s an extremely, extremely hard sell,” Witkos said.