The concessions: Are they enough?

Posted on May 18, 2011. Filed under: Uncategorized |

More details of the labor concessions deal on the table have been released, and they’re bringing up some questions. Millions of dollars in savings are “soft” savings, based on projections.

According to a fiscal analysis released by Gov. Malloy’s office, the deal would save $700.7 million in the July 1, 2011 fiscal year and $901.2 million the year after.

The “hard” savings include:

  • A four-year no-layoff agreement – with some conditions, including a two-year wage freeze. The wage freeze will save the state $448 million.
  • Pension savings – A projected $485 million will be saved from “changes to the way pensions are calculated and funded.”

Large savings are projected on the healthcare side, based on the proposed institution of a “Value Based Health Care” program, encouraging and rewarding preventative care. Employees will be asked to sign a “commitment form” to attend free annual physical exams, age-appropriate diagnostic screenings, and two dental cleanings a year.

Those who refuse to sign the form will pay an additional $100 premium per month and a $350 per person per year deductible.

There’s now a $35 co-pay on emergency room visits as well, thanks to the report that one current state employee visited the emergency room a staggering 150 times in one year.

Read more about the proposed healthcare changes and savings.

The agreement also assumes approximately 1,000 retirements.

The $400 million shortfall is expected to be made up by as-yet-unnamed spending cuts.

What do you think? Will the labor unions agree to this? Is it a fair deal?

Don’t forget – you can ask Malloy your questions yourself!


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[…] For the past few weeks, we’ve all been puzzling over the details of Gov. Malloy’s union concessions. […]

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