OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 ↓ (860) 240-0200
http: //www. cga. ct. gov/ofa
EMERGENCY CERTIFICATION
HR-31
RESOLUTION PROPOSING APPROVAL OF COLLECTIVE BARGAINING AGREEMENTS IMPLEMENTING PROVISIONS OF THE AGREEMENT BETWEEN THE STATE OF CONNECTICUT AND THE STATE EMPLOYEES BARGAINING AGENT COALITION (SEBAC).
OFA Fiscal Note
Agency Affected |
Fund-Effect |
FY 09 $ |
FY 10 $ |
FY 11 $ |
Various State Agencies |
GF & TF -Savings |
$71. 8 million |
$318. 3 million |
$311. 8 million |
Note: GF=General Fund, TF = Transportation Fund
Explanation
The resolution proposes the implementation of 1) an agreement between the State of Connecticut and the State Employees Bargaining Agent Coalition (SEBAC) filed on May 12, 2009, and 2) collective bargaining agreements between the State and 29 bargaining units.
Changes include the following:
● Wage freezes in FY 10 for the agreed upon collective bargaining units;
● Furlough days (1 day in FY 09; 3 days in each of FY 10 and FY 11);
● Retirement Incentive Program (RIP) offered to full-time and part-time employees who are at least 55 years of age and have at least 10 years of state service; or full-time hazardous duty employees with 20 years of state service;
● Three tier formulary for prescription co-pays ($5/$10/$25) effective 7/1/09 for active employees;
● An increase of $350 per year for all active employee health care premiums;
● Reduce co-pays for certain preventative care services;
● Employee contributions to fund retiree health care (3% contribution for new hires and employees with less than 5 years);
● Defer the State's contribution to the State Employee Retirement System (SERS) by $50 million in FY 09 and $64. 5 million in FY 10; and Other Post Employment Benefits (OPEB) by $14. 5 million in FY 09; and
● Placement and Training funding in FY 09 and FY 10.
It is estimated that the General Fund and Transportation Fund savings resulting from state employee concessions will be $71. 8 million in FY 09; $318. 3 million in FY 10; and $311. 8 million in FY 11. See table below for details.
Estimated Savings/(Cost) from State Employee Concessions (in millions) | |||
Item |
FY 09 |
FY 10 |
FY 11 |
Retirement Incentive Program |
$0. 0 |
$106. 0 |
$102. 0 |
Wage Freeze and Furloughs |
$9. 8 |
$118. 2 |
$156. 2 |
Deferral of Contribution to SERS & OPEB |
$64. 5 |
$64. 5 |
$0. 0 |
Prescription Co-Pays to $5/$10/$25 |
$0. 0 |
$14. 3 |
$19. 0 |
Premium Cost Sharing $350/yr |
$0. 0 |
$20. 0 |
$20. 0 |
Reduce Prevention Services Co-Pays |
$0. 0 |
($0. 8) |
($0. 8) |
3% Contribution to Fund Retiree Health Care |
$0. 0 |
$1. 6 |
$15. 4 |
Placement and Training |
($2. 5) |
($5. 5) |
$0. 0 |
Total General & Transportation Funds |
$71. 8 |
$318. 3 |
$311. 8 |
sHB 6365, the budget bill, as favorably reported by the Appropriations Committee on April 2, 2009 includes $628 million in savings attributed to state employee labor concessions over FY 10 and FY 11.
Sources: SEBAC agreement, collective bargaining agreements, Office of Policy and Management, Core-CT, Agency data.
The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.