by Clifford F. Thies

Good news from Connecticut, one of the few remaining all-Blue States: after 77 tax increases, the state government is still facing a fiscal crisis. The mess described as a budget containing the 77 tax increases assumed $1.6 billion in concessions from the state's union workers. But, the union workers rejected the concession package.

The union worker deal mainly involved: (1) suspension of pay increases previously bargained, (2) raising the retirement age for sate workers by three years, (3) requiring state workers to contribute to their retirement health benefit plans, (4) raising deductibles and co-pays in the state's health benefits plans, and (5) a no layoff pledge by the state. The deal was negotiated with union leaders and required a large majority of bargaining units for approval.

Rejection of the deal appears to put the state government with no option by to start sending out layoff notices, perhaps 10 percent of its work force. It is said that state workers with up to ten years seniority will be laid off; and, that the state's unemployment rate will increase by 0.3 points, to 9.4 percent. Also, don't think even think about what will happen to state services in Connecticut. At least in Somalia, where there is anarchy, you don't have to pay any taxes.

Reference CT Mirror story