Jon Pelto: Governor: This [Budget] Disaster is Your Doing…

June 23, 2011 Governor: This Disaster is Your Doing…
Connecticut Headlines over the past 24 hours:

Prospects Dim For Malloy-Union Deal; Unions Urge Patience, Malloy Readies ‘Plan B’; Prospects unclear for town aid, social services if labor deal fails; Concession Package On Life Support After ‘No’ Vote; Chances dwindle for budget-balancing labor pact; AFSCME unit rejects concessions, making ratification unlikely

If the Malloy/SEBAC State Employee Agreement Fails – the responsibility for that failure rests squarely on the Governor and his little circle of advisors.

As readers of this blog know, it is apparent that Malloy’s approach to getting a significant state employee concession package was either designed or destined to fail depending on whether you think the Governor’s tactics were an act of omission or commission.

From Day 1, Malloy could not have handled the situation any worse. Over the past 4 months I’ve devoted a blog post to this very issue every week or so…

The shocking highlights of Malloy’s approach begins back on February 15, 2011

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...the real truth is that if the agreement is rejected, Malloy and the Democrats could utilize one or more of the following options to fill some or the entire $700 million deficit;

1. They could fill a portion of the budget deficit by utilizing the growing surplus from “excess revenue”. Connecticut’s 2nd gas tax will generate more than $100 million dollars extra in the coming year. The income tax and corporate tax will also likely produce more than was budgeted.
   
   
2. The budget itself has extra funds in some key line items. The account to pay retiree health benefits, for example, may have as much as $70 million or more in extra funds
   
   
3. The Governor could utilize some of his authority to cut up to 5% of the state budget ($1 Billion) without legislative approval. Although there are some limitations to areas that can or should be cut, the Governor could certainly cut millions if needed.
   
   
4. The law further requires that the Governor develop a plan to deal with any deficit that may arise and propose changes for the General Assembly to approve.
   
   
5. Finally, the Governor could follow the collective bargaining process and return to the table to negotiate a package that would garner majority support among state employees.
   

So – call it what you want – but the real reality is that Governor Malloy would have lots and lots of options if the agreement fails.

While suggesting that he will lay off 7,500 state employees may or may not be bullying, one thing is certain, it is not his only option.
SNIP