Labor Concessions Sought
by Melissa Bailey | May 5, 2008 3:42 PM | Permalink | Comments (30)
After learning that state money won’t fill a $9.5 million hole in New Haven’s budget, Mayor John DeStefano told city unions to offer concessions and department heads to examine cuts — with an unspoken but clear layoff threat looming.
Union reps (like Larry Amendola, pictured) are now mulling over ways to help the city tighten its belt — including health and pension givebacks — as aldermen move to pass an FY09 budget in tough financial times. So are city department heads.
In a contentious meeting late Friday afternoon with the 14 labor unions that deliver services to the Elm City, DeStefano blamed Hartford to explain why the city is staring at a hole in its budget.
In introducing a budget for the coming year, DeStefano had been counting on a $9.5 million increase in state PILOT money. (PILOT stands for Payments In Lieu Of Taxes that the city would otherwise have collected on not-for-profit-owned properties like hospitals and universities.) While the legislature’s Finance Committee approved a plan that would have made those funds available, DeStefano learned last week that that money is not likely to come through: Facing a disappearing budget surplus, the Democrat-controlled legislature and Gov. M. Jodi Rell agreed not to make changes to last year’s $18.7 billion budget.
“They decided to take a walk on the people of Connecticut,” said DeStefano (pictured) of the legislature during a lobbying trip to the Capitol Monday. (Click here for a related story by Christine Stuart.)
When the legislature failed to increase PILOT funds, the city moved to what it had described as Plan B: Ask unions for concessions.
“He made a clear picture that we’re in trouble,” said Larry Amendola, president of the 3144 management union.
The mayor told union presidents that “he’s got no other choice but to ask for concessions,” Amendola said.
“I offered them suggestions as to how we could all contribute to the best outcome possible, which I think is going to be painful,” DeStefano said in a phone interview Monday. He said he did not mention layoffs. He declined to go into details as to what type of concessions he recommended.
A Health Care Squeeze?
Amendola gave a few details of what he said were across-the-board requests affecting all facets of labor.
The mayor asked all union members to increase their employee health insurance contribution by 6 percent, according to Amendola.
Amendola said 17 percent of each pay check his union members get goes towards health insurance. The mayor suggested increasing that contribution to 23 percent, according to Amendola, who had a tough time swallowing the suggestion.
“My initial reaction, especially on the medical, is we’re paying enough,” Amendola said. “I certainly want to help the mayor, but certain things would just be impossible.”
DeStefano also recommended union members take on a larger share of their pension contribution, Amendola said: Union members pay 6 percent of their salaries towards pensions; the mayor asked them to raise that to 8 percent.
The none-too-thrilled union leader said he’d be making alternative suggestions such as a buyout plan. Talks remain in preliminary stages and are due to resume as soon as the end of this week.
The Layoff Question
DeStefano also met with city department heads in a separate meeting late Friday afternoon and asked them to make reductions to their budgets. The mayor forewarned of a painful process: “There’s little in the way of expenditure reduction that would not have severe program consequences,” he said.
He declined to say whether those reductions would include cutting staff. “I don’t want to speculate on what those [reductions] would be, and I don’t know what might be considered.”
Asked if it was realistic to have presumed a nearly $10 million in PILOT money when the program has been chronically underfunded, the mayor said he thought it was a “reasonable presumption” — “and if it’s something that doesn’t turn out to be the case, it doesn’t leave us any worse that we would otherwise be.”
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Comments
Posted by: Tired of Unions | May 5, 2008 4:07 PM
It's too bad for the employees, but greedy unions will not work in a tough economy.
Why should one group of people(non-union tax payers) not be able to afford health care because they are paying for the health care of others (unionized city employees)
Sorry kids, but the greed needs to go. Especially in times like these.
Posted by: facChek | May 5, 2008 4:48 PM
"Asked if it was realistic to have presumed a nearly $10 million in PILOT money when the program has been chronically underfunded, the mayor said he thought it was a "reasonable presumption".
How could a reasonable person presume that pilot, which has been unfunded in terms of the state statue since forever, could reasonably be expected to increase by 10M, when the Mayor's finance department has reported to him a 10.6M shortfall since July 07 of the current budget.
DeStefano ran for governor in 2006 preaching the same policy of increasing state taxes to pay cities and towns. His proposals were soundly beaten by 330K votes. How then could he likely expect to receive increases in 07/08 and in 08/09, especially since the state budget was set for two years, in 07.
This is not presumption at all, it's arrogance.
Today, as should have been expected, he has asked the unions to increase their medical and pension contribution. A position he should have taken in 05/06, but didn't.
Why is it that when it is time to cut back on spending the Mayor always looks outside himself first??
Answer:
Because when you're a deer in the forest, you don't want to see the trees :+(......Duh, Who me??
Posted by: sam | May 5, 2008 5:52 PM
The union members cannot afford to give back so its up to the mayor to do the right thing which is to offer an early retirement/golden handshake its been done before and its the only reasonable solution to this problem there is not enough workers to lay, simply stating the fact police--fire and BOE never get laid off ---- so then what do the right thing mayor and offer an early retirement it will save jobs save money and the pension will regenerate in 5-10 years..........AMEN........
Posted by: Wiseman45 | May 5, 2008 6:10 PM
Sure, Mr. Mayor.... we'll take a cut. You first?!
Posted by: City Worker | May 5, 2008 7:39 PM
Reading the statistics I'm going to have my medical go up 6% and pay 2% more for my pension. That's a 8% cut in pay. Like everyone I have had to pay more for electricity, gas, gasoline and food. Lots more for food. I will also have to pay more property tax, and I am already behind on my mortgage. No help for me.
John DeStefano has bankrupted the city building too many new schools too fast. That is the cause of the problem. The least the Board of Aldermen can do is give him a 25% pay cut. Let the guilty suffer
Posted by: Gary Doyens | May 5, 2008 8:03 PM
It's pathetic that the only way to get the City of New Haven and Mayor DeStefano to trim its spending in any substanial way, is for the state to say, there's no more money.
The mayor has been on a spending spree for years with no effort whatsoever to be reasonable or rationale. With over 5100 employees, and more than $700 million in spending - there is an endless array of places to cut back. Sharpen the knives and pencils and not a moment too soon.
Posted by: realdeal | May 5, 2008 10:14 PM
According to Mayor DeStefano it will take Layoffs,reductions in spending and a 15% tax increase on the homeowners of New Haven to balance his budget. An estimated 25 million dollar hole.
The mayor needs to take responsibility for his fiscal behavior over the last several years which created the hole.
Posted by: Real Easy | May 5, 2008 10:30 PM
Getting $10M out of the budget is easy. How about this
1. $10,000 pay cut for Department Heads. 20 of them gives $200,000 reduction
2. Eliminate the 20 new cops. 20 at $80,000 gives back $1,600,000
3. Put a cap on police overtime.
$2,000,000 easily saved.
4. Cut capital projects by 10%. No new carpet or armoires in City Hall
$1,000,000
5. Cut $500,000 from LCI. Neighborhood specialists only spend there days talking
6. Reduce school construction
$3,000,000
7. Collect refuse biweekly, not weekly
$400,000
8. Reduce library hours
$200,000
9. Reduce sidewalk construction
$300,000
10. Cut one corporation counsel.
$200,000
11. Eliminate the Quietist 2 Fire Stations
$600,000
12. Cut every third street light in safe areas
Westville, Beaver Hills, East Rock, Downtown
$1,500,000
That is $11.5M. Easy. And a look at all those $100,000 jobs in the BOE hasn't even been included.
Put up user fees at the golf course.
Come on folks. This is all politics as usual with Johnny Boy. Anything to blame Rell. This is a non issue. Except if you get laid off. Waterbury had to be bailed out by the state. New Haven next????
Just think all those downtown restaurants and shops that will go under with fewer and poorer city hall workers.
Posted by: In The Hood | May 5, 2008 11:03 PM
Maybe we could consider some of Gary's ideas posted 4/30 in response to my request to him for details of his suggested cuts and downsides!
Posted by: Gary Doyens | April 30, 2008 10:25 PM
In the Hood:
1. Eliminate Fair Rent Commission
2. Hiring freeze in non-essential jobs. position increases in the police and fire are not essential.
3. Freeze Travel outside state.
4. No more personal cars for city executives.
5. Minus outside funding, end city ID program.
6. Cap Police overtime at $4 million - it now exceeds $6 million. When you've got that much overtime, the department simply is not being managed properly.
7. End the practice of accruing pension benefits for cop overtime paid by outside contractors.
8. Require all union contracts to have the exact same benefit package so they can be bundled and bid accordingly.
9. Seriously investigate whether the insurance pool offered by Nancy Wyman's office will provide savings to City of New Haven employee health - Wyman believes it could save millions.
10. Cut $250K from LCI. Shrink responsibility.
11. Cut the Tweed Subsidy - $800K - funds could be replaced by user fees and higher g.a. fees.
12. Begin four year phase out of subsidy at Shubert.
13. Trim the benefit package provided to city employees so it doesn't exceed 35 - 40% of salary.
14. Cut $3 million from the BOE - with focus on employees earning in excess of $100K; eliminate special assignment teachers unless tied to specific programs or classroom work directly tied to student learning or improving the achievement gap.
15. If any more schools are built, focus should be on meeting needs of students, not wants and should certainly reign in the architectual dreamers that give us monuments we can't afford.
16. Consolidate senior centers into one or two full service centers - eliminate rest of them and their employees.
17. End city id program unless it has outside funding. If you still offer it, do it through the libraries where we already have employees. Eliminate jobs of existing id employees.
This is just a beginning - There are no significant downsides.
Posted by: A Johnson | May 6, 2008 6:02 AM
The average black/hispanic female city employee is a single parent who makes less than $40,000 a year. She can't afford to live in New Haven and chances are that she is near homelessness and you ask her to give back (what a joke). What about the businesses that haven't paid their taxes to the City and are not in foreclosure? What about laying off the BOE administrator who makes $80,000+ who sit around all day? John you need to give back and go after those businesses that owe the city in back taxes. You've made it impossible for the average city employee to live in New Haven and now you're telling them that they can't afford to live anywhere.
Posted by: Gary Doyens | May 6, 2008 7:40 AM
According to the Register, the budget hole is larger than $9.5 million - there's another $2.3 million in an early reading grant that is still hanging in the balance and hasn't been renewed.
Couple of other observations:
1. Don't provide early buyouts for union members. I'm sorry, but why add to their bloated pensions and health plans. They are a driving cause of the city's financial problems. Just lay them off.
2. Given the DeStefano Administration's inability to live within any budget - regardless of how bloated it's been - while they're cutting, they might as well increase the cuts to $25 million.
3. It's now clear why the mayor didn't cut the mil rate last year, opting instead to just double down on spending increasing it by a record $36 million in one year.
4. The mayor and the aldermen have been told they were overspending and given concrete ways to cut and trim spending across the last 4 - 5 years. They've ignored it all.
5. It's not the state's fault - it's John DeStefano's, shared by those alders who have repeatedly rubberstamped the excessive spending and rapid increases in both property taxes, fines, building permit fees and the hyper aggressive towing and foreclosure actions to collect taxes and parking tickets.
Posted by: eastshoreguy | May 6, 2008 9:15 AM
Somebody tell me why the unions can't take an increase int heir healthcare costs?
Sounds like the increases still make their co-pay lower than mine in the private sector and I am not out on the street - yet.
Come on, give me a break!
Posted by: Tom14 | May 6, 2008 9:24 AM
I have a few suggestions for cutting back.
1. Put both the police and fire recruit classes on hold. The savings in salary and benefits alone has to be a couple million.
2. Go up on the rates at the city golf course.
3. Offer early buyouts to employees who have reached there maximum service time.
4. Ask Yale University for assistance. 9 million to a University with a few billion endowment is nothing.
5. Cut back on Social programs within the city. There are programs that are non essential to the the welfare of the city.
6. Lastly, wake up New Haven taxpayers, we have been dealing with this issue for years, we need to elect a fiscally responsible mayor. We cannot rely on the state to bail us out all the time. If the state does have to bail us out the consequences and cutbacks will be more then anyone could fathom.
Posted by: on whalley | May 6, 2008 10:23 AM
3 weeks then I leave New Haven and CT.
*dances a joyous jig*
I can still be mad about those $1.5 mil bus stops as a federal taxpayer though. He can use city taxes to buy all the furniture he wants now for all I care. I can stop saying "sucks to be me" and start singing "sucks to be you."
Woo-hoo!
This city is run like a pyramid scheme and its collapse is long overdue not unlike the state and not unlike the fed. Heated bus stops = spinning rims for the city. Hedonism at its best. For one and a half million he probably could have bought spinning rims for everyone. Just as useful, just as necessary.
It's so much nicer to look at it all like some ridiculous comedy being played out by a bunch of distant clowns than have to suffer the very real expense of living under it.
It's like Mr.T putting his 524th gold necklace on and wondering wear all his money went then calling his elderly parents on a budget and asking to borrow a few bucks.
This is the fault of every resident who ever "demanded" more and every politician who gave it to them. Someone once told me while I was complaining about the cost of living here "but you get so much for the money." Whether I do or not is not the point. When you've got 10K to spend on a car do you borrow to buy a 30K car because you'll get "more for the money?" Who am I kidding? Apparently you do.
I saw something yesterday that illustrates New Haven wonderfully: a Hummer parked in the lot at Family Dollar on Whalley Ave. That's New Haven. An idiot who bought a Hummer at the dollar store buying groceries in a futile effort to "make the notes." It should be the city's seal or flag or something.
Posted by: FIX THE SCHOOLS | May 6, 2008 11:22 AM
Destefano blames the lack of local policing resources on the state budget. According to the Register, he insinuated that if PILOT wasn't restored/increased, that we would have more home invasions.
Our city has THE most expensive BOE construction budget pound for pound in the country, one of the most expensive school administration budgets in the state (without any apparent accountability for outcomes), an outrageously generous teacher union contract (without any accountability for outcomes) - all of which the mayor is soley responsible for negotiating and awarding. And yet now all of these expenditure are neatly categorized as "fixed costs". So now the safety of our residents is COMPLETLEY dependent on about $10 million in state funding.
You've got to wonder if the agencies who rate New Haven's bonds are the same guys who gave Countrywide and Bear Stearns passing grades last year.
Posted by: Charlie
| May 6, 2008 11:29 AM
The irony here is that DeStefano did not plan to be in City Hall smelling the crap he created -- he expected to be Governor. 330,000 "no's" later, he is still Mayor and now he is stuck reaping what he sowed! Couldn't have happened to a nicer guy!
Posted by: ROBN | May 6, 2008 12:32 PM
FTS,
Pound for pound, how does New Haven's expenditures for school construction compare to the rest of the state and country if you spread the costs back to the WPA era, when most 20th century schools were built?
Posted by: NHBOE Employee | May 6, 2008 12:39 PM
As an employee of the BOE, and not one of DeStephano or Mayo's cronies who make the $100K plus salaries-it is time to put an end to the "contracted" staff at the BOE. People who were in positions making good salaries with pensions retire and then are brought back as "consultants" with contracts ranging from 100k to 300k to do the jobs that others are employed to do and are capable of doing. These positions are mearly political favors and all these consultants do is completely screw up the schools and programs offered by the BOE. Asking those of us who make 25 to 50k a year to make financial concessions is outrageous. Those teachers and administrators who have been at the BOE for twenty years are the ones costing the system a fortune-large pensions, ever increasing salaries, with ever DECREASING performance. Newer employees do not receive the "traditional" benifits and pensions-we cost the system far less money and work 10x harder-and we are the first to be layed off. For those who have commented that no one in the BOE ever gets laid off-where have you been? Just a few years ago there was a massive layoff-but it didnt touch the fat cats on top-it took out those who make less than 50k a year. Evaluate every person in the system who makes over 80k-is their performance matching their salary? If not CUT THEM. Same for City Hall, Fire, Police..and SOMEONE make Yale pay taxes. They take up half of the city and contribute nothing (although they are the first ones to stand up and say the do this and that-let the money go to the city-not your little community programs)....The school construction project should have been aimed at those schools that were in bad shape. Have you visited these new schools? More money has gone into "decoration" such as indoor and outdoor murals and very expensive architecture that does not improve childrens learing. Sure it looks good, but when the students arent learning its nothing more than millions of dollars that have been wasted. Mayo and DeStefano and all of their buddies should have their salaries cut to 40k a year before they even concider cutting those of us who work hard for very little.
Posted by: jeffreykerekes
| May 6, 2008 2:35 PM
Come to the final BOA Finance Committee Meeting on the Budget on this Wednesday, 5/7/08 @ 6pm on the second floor at city hall. The Finance committee will be deliberating on this budget. Come with signs to be heard since it is not the public hearing.
Posted by: Sam | May 6, 2008 4:19 PM
Early retirement the only reasonable way, lets cut out these losing programs in LCI which are costing taxpayers $ Section 8 program A LOSER and LICENSING program A BIG LOSER money wise you can't expect taxpayers to absorb a hit to bridge the gap for these two losing programs , somebody should look into whats being lost and how the city takes from the --9.5 million dollar deficit to make up the difference no more money out of the General Fund to make up the difference MAYOR do the right thing, you would have to layoff 250 average paying employees to make up 9.5 million dollars, there would be nobody left, and the unions are not giving back, the mayor gave himself a raise whats he think we are all are &$%#@*% dopes..................
Posted by: Fedupwithliberals | May 6, 2008 4:56 PM
In the words of the right Reverend Wright, " your chickens are coming home to roost!". Try running for governor now, JD!
Posted by: FIX THE SCHOOLS | May 6, 2008 5:30 PM
Robn,
Excellent points Robn. And, pound for pound, if you go back to 1639, CT. is near the top of the charts re: per capita expenditures of on school construction because we built more little one-room red school houses than any other town!. Of course there weren't a lot of states back then, er, colonies....so that might explain the gap.
So Robn, you are saying that because NH schools were so decrepit, we should spend $150 million per year for ten years to make them into taj mahals? Does that make fiscal sense to you? And another question: Has this capital improvement program had any significant positive impact on educational outcomes for kids?
Posted by: Son of Sam | May 6, 2008 8:08 PM
With 250 layoffs there will be forclosures on city hall worker which get laid off. More costs at homeless shelters for them. Less taxs for the city. Well done Mr Mayor
Posted by: David Streever | May 6, 2008 9:06 PM
I think the investment in our schools is critical--or we will have more poor, disenfranchised, bitter, angry young people cruising around looking for trouble.
I do think that is the outcome of not investing in the school system. Some of our schools are trash heaps here--let's do the best we can & not hold back!
Posted by: nfjanette
| May 6, 2008 11:21 PM
Unless the crime rate drops dramatically, cutting funding for the new police officers would be penny wise, but pound foolish. Much of the overtime cost for policing last year was to increase walking/biking patrols for which there simply were not enough sworn officers to cover.
Posted by: Chris Gray | May 7, 2008 1:14 AM
"The mayor and the aldermen have been told they were overspending and given concrete ways to cut and trim spending across the last 4 - 5 years. They've ignored it all." Gary Doyen's point 4 says a lot.
People carp about the Mayor, but we keep re-electing his enablers. With all the electoral fever in the Democratic Party, especially the many, many new voters, some thought must be given to organizing the disaffected around fresh candidacies to challenge the old guard in local politics.
At this point I would be satisfied with fresh Democrats who aren't named after former Alders, Mayors, Governors, Presidents or Congressional Representatives. (Oops, Rowland wasn't a junior.) I verbally rebuked Branford Democrats at the polls when I saw William O'Neill III on my ballot. A Republican or two and several Greens would probably help the discussion along, though.
Posted by: omerta | May 7, 2008 8:04 AM
NFJANETTE really believes the usual hype from NHPD ??? More cops or more overtime means less crime. No, it just means spending more for cops. Try downsizing the police force. If crime stays the same, then its clear they are not needed.
I've been mugged twice in the last five years. One time the cops didn't turn up, the other it took them five and a half hours. Yet I see a cruiser everyday with a cop sat in it doing nothing just a block from my house. I'd be happy if the guy was eating a donut as it would mean he was not asleep.
Posted by: cedarhillresident
| May 7, 2008 10:56 AM
Wow I love this thread!! We can cut the budget and lower the mill rate with all the ideas!!
UNIONS layoffs will happen get on the ball and work with the city!!!
"A Johnson "
YOU HIT IT ON THE HEAD!!
Posted by: Fedupwithliberals | May 7, 2008 7:55 PM
Dear Chris Gray,
Your statement about electing fresh Democrats is precisely what keeps puting this city in a hole. "Meet the new boss, same as the old boss". You want to see change? Vote Republican and toss the entire corrupt machine out!
Posted by: joey | May 8, 2008 6:59 AM
Any of you bloggers and our city personnel who think that cutting police or fire service personnel is part of the answer is saddly misstaken you cant be serious.
Sorry, Comments are closed for this entry
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