The Connecticut state employee labor unions’ ratification of a concessions deal worked out with the Malloy administration is a huge victory for the governor and labor leaders (who, whether you approve of the methods or not, arranged it so the rank and file would approve the deal). But what now?



• The state lost a good chunk of the savings Gov. Malloy wanted by waiting until Aug. 19 to approve the deal. However, the governor still has his rescission—or budget-cutting—authority. He can cut any line item in the budget by 5 percent (except aid to cities and towns). Painful cuts might still be coming.
• Is the $1.6 billion savings the labor concessions deal is suppose produce for real? The legislature’s non-partisan Office of Fiscal Analysis says it can only verify a portion of the savings. Administration officials tell The Hanging Shad this morning that one way or another, they’ll get the savings.

• The state police union has yet to report its results on ratification of the give-back deal. They are expected to reject it. If they do, they lose their no-layoff security. Some of those already laid-off may not be brought back.
• State labor figures show unemployment in Connecticut at more than 9 percent. Malloy’s recent “jobs tour” better produce.

In short, the economic story of Connecticut is not over.

Your thoughts?

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