Kniep: Look to the Unions

Connecticut can start shedding its reputation for high taxes by addressing state arbitration rules and salaries and pensions, said Susan Kniep of the Federation of Connecticut Taxpayer Organizations.

"We pay the highest taxes in the nation. We are frequently making national news because of our high taxes and our high debt," she told a handful of residents at the recently. Kniep is the former two-term mayor of East Hartford, and the first woman to hold the office.

Specifically, the state debt includes $19.5 billion in bonding, $11.7 billion in state employee pensions, $9.1 billion for teachers' pensions, $26.6 billion in health care for retired state employees and an additional $3 billion.

That amounts to $21,000 for every man, woman and child in the state, she said.

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She added that Gov. Dannel Malloy is reporting a surplus while the state Comptroller's office is reporting a deficit.

She cited numerous municipalities who are close to bankruptcy or in it, noting that Connecticut is numbered among the 10 states that can't pay its bills.

But the situation could improve. "The state's recovery is picking up speed, but it still has years to go," Kniep said.

The state's financial situation could lead to cuts in municipal aid and increases in local taxes, the former mayor added.

One thing driving up costs are contracts. There is a "cloak of secrecy" in contract negotiations, she said, adding that Wisconson Gov. Scott Walker, who rejected collective bargaining with unions.

As mayor, she tried the same tactic and did win a wage freeze from unions after sending out pink slips.

But she did differentiate between unions and their leaders. "I have the greatest respect for employees in the public sector unions. They are hard-working people. They care for their families. They care about their future," she said.

But Malloy didn't leave himself wiggle room in contracts in which he promised no lay-offs for four years. "That is going to be felt," she said.

One audience member asked about the ramifications of bankruptcy. Vallejo, Calif., settled its debts for cents on the dollar. "Those vendors took a beating," Kniep said.

Bankruptcy can also lead to breaking union contracts. "Ask for collective bargaining reforms," Kniep said.

Trumbull teachers took a one-year wage freeze last year but are due for raises this year.