Rep. Kokoruda Comments On Paid Family & Medical Leave Act

From the Connecticut House Republicans: State Representative Noreen Kokoruda (R-101) on Friday, May 31st voted against legislation to increase payroll taxes on Connecticut residents in an attempt to provide paid family and medical leave coverage to workers statewide.

The legislation - SB 1, An Act Concerning Paid Family and Medical Leave - mandates a one-half of one percent payroll tax on nearly every person in the state to be placed into a fund for distribution for approved medical leave. To allow the fund time to accumulate enough of a balance to run the program, money will not be available for disbursement until after the first year.

Proponents claim the payroll tax will generate enough money from workers to fully fund each covered employees’ leave. Opponents say the program is a government overreach and will quickly fail under the pressure of providing such lavish benefits for so little employee investment.

“I have always felt that Paid FMLA is a major issue for our parents and families, and over the course of my nine years serving as a legislator, I have introduced at least four bills that proposed FMLA programs. With each proposal I tried to help families deal with health issues, childbirth, and other family catastrophes with paid time off from work with assurances of no job loss. There were two things that all my proposals had in common, they were all administered by private or not-for-profit organizations as opposed to government and they were all optional as opposed to a mandate,” said Rep. Kokoruda.

Language in the bill, specifically the “close association/equivalent” family member component, caused concern among legislators with many wondering how such a relationship can be proven, and how rejected applications will be arbitrated. Many also questioned why unionized state employees are exempt from paying the tax, and shared their concerns that if the fund becomes insolvent or falls behind financially the benefit will be decreased or could lead to an increase in the tax being removed from employee paychecks.

“State government should not be in the business of grabbing money out of the wallets of taxpayers and deciding how to spend it, which is what this legislation does,” Rep. Kokoruda added. “Not only is this payroll tax mandate, but it is also unsustainable and it will only be a matter of time until the deduction is increased. On top of that, the state will have to hire approximately 135 new state employees with hefty pensions and health benefits, increasing the associated price tag of this. It is also important to point out everyone is included in this payroll tax except for thousands of union state employees – again the state picks winners and losers with its policies.”

During the debate, Republican lawmakers offered a constructive alternative to the Democrats’ payroll tax plan.

“There were two proposals put forth the legislature that pertained to paid FMLA, and I supported the option that was not a mandate payroll tax and did not require additional state employees that come with expensive pensions and health benefits. I believe in paid FMLA, but I believe that it should be a private choice and not a mandate instated by government,” Rep. Kokoruda said.

The Republican alternative would task the state’s Insurance Department to develop a voluntary free-market plan, similar to an insurance product, and make it available to both employees and employers. It would allow workers to qualify for paid family and medical leave while treating such leave as an employment benefit, and not a state mandated payroll tax. Employers would be able to offer the benefit to employees as they do other types of insurance and it would further empower employees to purchase such coverage if they found it beneficial to their family circumstances. The amendment failed on a party-line vote of 84-61.

Rep. Kokoruda represents the 101st District communities of Durham and Madison.