Friday, July 15, 2011

The Fat Lady Sings In New Haven

New Haven is among the top 14 cities in the Unites States in which worker’s compensation is devouring city budgets, according to a Business Insider report.

“City worker compensation eats up 72% of the budgets of New Haven's city departments.

"The city's $475 million budget is expected to grow just $4 million this fiscal year. Employee pension and healthcare costs will rise $12 million.”

Pension costs in the heavily union influenced city are outpacing budget growth by a 3 to 1 margin.

“The city laid off 82 workers this year to close a $5.5 budget shortfall after city officials and unions failed to reach an agreement on cost-cutting concessions.

“The mayor now wants to get rid of 200 school janitors and outsource the work to a private company.”

Public Sector Inc. reports:

“In February the city laid off 82 workers to close a $5.5 million budget gap in the current fiscal year, which ends June 30, after unions refused to compromise with DeStefano, who was seeking a range of concessions, including greater contributions from city workers toward pension costs. The mayor freely admits that he was guilty of granting some of the government perks he now terms ‘unaffordable’ and is seeking to trim.

“Now DeStefano has submitted a budget for next fiscal year which holds the line on taxes and holds out the prospect for more service cuts and layoffs. Like many municipal officials these days, DeStefano has little maneuvering room in the face of flat tax revenues and declining state aid: Compensation makes up 72 percent of the operating budgets of New Haven city departments. Still, this is an uncomfortable position for DeStefano, whose father was a cop and who has been regarded for much of his tenure as an ally of the city's public workers."

The fat lady is singing in Connecticut.
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