Political Capitol

Brian Lockhart covers the Connecticut General Assembly in Hartford

Archive for July, 2011

So what’s it costing state government to prepare for the worst?

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I’m not quite sure that we’re facing, as state Sen. Andrew Roraback, R-Goshen, put it, “Armageddon” if state unions again vote down a $1.6 billion concessions package in August.

But Democratic Gov. Dannel Malloy and state agencies are moving ahead as if the deal will be shot down a second time. The governor as of Wednesday issued 3,008 layoff notices and has no plans to stop until the final results of the union vote are released by Aug. 18.

Malloy’s agency heads are also scrambling to prepare plans to operate with fewer workers and implement other major service cuts.

All of this work got me wondering exactly how much money it’s costing state government to prepare for the worst?

Linda Yelmini, who as head of labor relations is in charge of the layoff notification process, could not quantify it in dollars, but said the effort is “killer.”

“I wouldn’t want to hazard a guess. It’s expensive. It’s a lot of people’s time. And it is extremely labor intensive,” she said.

I tried to get the Malloy administration to provide some rough estimate of the budgetary impact.

A spokesman said there is none because the work is being done by salaried employees.

But if the unions had ratified the concessions in June, then the state wouldn’t be issuing thousands of layoff slips, so right there we’ve incurred an extra cost, right?

Fred Carstensen, director of the Connecticut Center for Economic Analysis, said, ”No question this is costing the state. I’m sure it’s seven figures. Millions in labor time and disruptions. People don’t know whether they should start clearing out their desks. Clearly it will have had some impact on morale. And all these things are costly, no question.”

But, Yelmini said, what else can you do?

“I don’t think anybody wants people to be laid off … (But) it certainly would be ill-advised not to continue to go forward without some assurance (the concessions will be approved), which no one can give because people have the right to vote,” she said.

F. Christopher Arterton of New Haven, founding dean of the graduate school of political management at George Washington University, said it is an unfortunate but necessary expense.

“Should we be uncomfortable about the fact that in many cases we’re going through a process where we have to spend money that may be in a way spent needlessly? … It may be something we would rather not do, but I think it’s only responsible for people who are in state government to start planning for what could potentially happen,” Arterton said. “If they don’t it’s an even worse disaster in a way.”

Now THAT’S a big train set

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The state Bond Commission, chaired by Governor Dannel Malloy, this morning approved the purchase of 25 more New Haven Line train cars, ensuring the aging fleet’s replacement by 2014.

At one point member Rep. Sean Williams, R-Oakville, wondered aloud what happens to the hundreds of in some cases four-decades-old train cars.

“We give them to you,” Malloy responded, getting a laugh out of the group and audience.

But what is the final fate of the cars?

According to Judd Everhart, a spokesman for the state Department of Transportation, they’re simply scrapped.

What, they’re not good enough for an artificial reef?

Or Connecticut could erect it’s own Cadillac Ranch.

What’s Guv Malloy learned so far on his summer jobs tour?

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It’s been one month since Democratic Governor Dannel Malloy and his head of economic development launched a summer jobs tour intended to culminate with a jobs-centric special legislative session.

During a press conference this morning at the capitol, I asked Malloy what he’s learning and if he’s begun formulating specific policies to present to the General Assembly in the late summer/fall.

“We’re hearing some interesting things. Some bad news. Some good news. We’re certainly going to spend the coming weeks to prepare an agenda for the legislature before we call them back into session,” Malloy said, adding he plans to reach out to lawmakers for ideas as well.

He said one area he wants to focus on is precision manufacturing.

“We need to go after precision manufacturing. We need to support it,” Malloy said.

He also is looking to bolster the state’s insurance industry, which might not surprise  folks disappointed in the governor’s recent veto of a bill intended to make insurance rate increases more transparent and his opposition to the SustiNet public option initiative.

Malloy said he met with insurance executives last week as part of his tour.

“We are absolutely benchmarking our rules, our regulations and our offerings to make sure we stop losing insurance jobs to other states,” the governor said. “Insurance has shrunk in this state. I’ve said I’ve wanted insurance to be a growth industry.”

AG Jepsen clears Yankee Institute of tampering with union vote

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Attorney General George Jepsen, a Democrat, this afternoon announced his office has not found any credible evidence to support labor leaders’ claims the conservative Yankee Institute for Public Policy tampered with government e-mail to help kill a $1.6 billion concessions deal.

The State Employees Bargaining Agent Coalition requested Jepsen and the state Auditors of Public Accounts launch the investigation in late June.

Here’s Jepsen’s full press release on the matter:

STATEMENT BY ATTORNEY GENERAL GEORGE JEPSEN

REGARDING SEBAC COMPLAINT ABOUT E-MAILS

 By letter dated June 17, 2011, representatives of the State Employees Bargaining Agent Coalition (SEBAC) requested that my office investigate possible violations of state law by the Yankee Institute.  The letter alleged that the Yankee Institute obtained improper access to the state e-mail system to disseminate false information related to the tentative SEBAC agreement.  We have now, in conjunction with the Auditors of Public Accounts, concluded our inquiry of this matter. We have found no evidence that the state e-mail system was improperly accessed or hacked.

As part of the inquiry, we met twice with representatives of SEBAC.  We reviewed the e-mails brought to our attention by SEBAC, and certain other e-mails critical of the proposed settlement brought to our attention by others.  We also worked with the former state Department of Information Technology (now a part of the Department of Administrative Services) to determine whether any of these e-mails had been transmitted to the state e-mail system through a breach or violation of that system, and whether there was any other evidence of a breach of the state e-mail system in connection with communications to state employees regarding the proposed settlement.

As part of our inquiry, we reviewed the e-mails sent to state employees and provided by SEBAC.  The first e-mail, containing the subject line “VOTE No twice on concessions..pass it on” was sent on May 24, 2011 at 8:07 pm from “Lawrence Jones” to a state employee. The second e-mail, containing the subject line “http//votenotoconcessions.com,” was sent to a state employee on June 13, 2011 at 8:07 pm from “Daniel Luciano.”  Neither Lawrence Jones nor Daniel Luciano is listed on the state’s central financial and administrative computer system (CORE-CT) as a state employee. Neither of these two e-mails originated from State of Connecticut internet protocol (IP) addresses. Each originated outside the state e-mail system and reflected a Yahoo e-mail address.  The e-mails were sent to IP addresses leased by the State of Connecticut.  State information systems security personnel informed us that the e-mails were not sent from within the state system, and there was no evidence that the safeguards in place to protect the state’s network from hackers or other intrusions were compromised or altered to permit or facilitate the transmission of these e-mails.

In the course of the investigation, we uncovered information about additional e-mails that were critical of the proposed union agreement and sent to state employees.  Some of these e-mails originated from IP addresses outside the State of Connecticut system; other e-mails were sent by state employees from their state computers and addressed to other state employees. We found no evidence that these e-mails were transmitted in circumvention of the safeguards in place to protect the integrity of the state e-mail system.

SEBAC complained that negative information about the tentative agreement was sent to state employees through “blast” e-mails, suggesting state software settings were circumvented.  State information systems security personnel found no evidence that anyone sent “blast” e-mails concerning the tentative SEBAC agreement from outside the state e-mail system to hundreds or thousands of state employees in a single mailing and no evidence that security measures were bypassed.

With some limitations, individuals outside state government have the right to e-mail state employees. Here, because there was no evidence that state laws or policies were violated, i.e., no evidence to substantiate that the state e-mail system was compromised, hacked, or used without authority, we did not pursue the investigation further to attempt to determine the identity of the outside senders or consider the allegations that the e-mails contained false information.

In the course of our investigation, we noted that some individual state employees had used the state e-mail system to broadcast opinions about the proposed settlement in possible violation of state and agency policies about acceptable use of the state e-mail system.  The relevant state agencies promptly addressed the conduct. Generally, state agencies, in accordance with their personnel policies, can and should continue to address any alleged misuse of the state e-mail system by state employees.

Our review of the e-mails provided by SEBAC, and other selected e-mails that originated from IP addresses outside the state system, did not show that the state e-mail system was improperly accessed or compromised in violation of state laws or policies.  Therefore, based on the evidence to date, and with the agreement of the State Auditors, I am closing the investigation.

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UPDATE: And here’s what Fergus Cullen, head of the Yankee Institute, just issued. I’m still waiting for a comment from SEBAC:

HARTFORD – Fergus Cullen, Executive Director of the Yankee Institute for Public Policy, issues the following statement in response to the Attorney General’s announcement today clearing the Yankee Institute of accusations made by SEBAC:

“We appreciate this full and speedy exoneration by Attorney General Jepsen. We regret that SEBAC’s wild accusations wasted his time, the Auditor’s time, and that of their staffs. We all have better things to do.

From the start, the Yankee Institute called SEBAC’s charges paranoid and delusional, and said making reckless accusations without a shred of evidence damaged the union’s credibility. Rank and file state employees deserve better for their dues than the stunning incompetence of union staff throughout the concessions ratification process. Heckuva job, Matt, Larry, and Dan.

The unions like to say they stand up for working people. The group that really stands up for Connecticut’s working people – the three million taxpayers who provide the salaries and benefits of government workers – is the Yankee Institute.

The unions can file harassing complaints with the Attorney General to try to silence us. They can pressure our landlord to rescind our lease. But we will not be intimidated from defending Connecticut’s taxpayers.

SEBAC has defamed and slandered us, and abused the state’s whistleblower law with false and unsubstantiated accusations. We reserve our legal options.”

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UPDATE: SEBAC ain’t backing down. From union spokesman Eric Bailey:

Leaders of the unions in SEBAC appreciate the attorney general’s looking into our complaint against the Yankee Institute and respect his legal conclusions. It’s disappointing that the state’s email system is apparently arranged so that outside groups can get around inadequate software restrictions and distribute emails through the system without being in violation of computer hacking laws — and apparently without even being subject to detection. We continue to believe that doing so using assumed names for the purpose of disrupting a free and fair democratic vote is immoral, if not illegal. 
The Yankee Institute’s interest in this matter remains the same — producing painful job cuts and “downsizing” state government, which is really just code for privatizing public services.
The misinformation previously encouraged by the Yankee Institute has been addressed by new language in the revised tentative agreement union leaders reached with the Malloy Administration.  
Union leaders have no doubt the Yankee Institute will continue regardless. We would respect them much more — though obviously not agree with them — if they would openly admit what their motives are for getting involved in state workers’ elections. We would also respect them more if they stopped employing people as in-house propagandists that masquerade as “investigative reporters.”

Union vote may not salvage vo-tech sports

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Even if state employees grab their second chance at ratifying a $1.6 billion concessions package, they might not be acting soon enough to reverse some of the damage already being wrought by the governor’s layoffs/cuts.

Take, for example, the Connecticut Technical High School System, which faces cuts in arts and athletics.

Because the unions failed to ratify the givebacks in June, Democratic Governor Dannel Malloy has been moving full steam ahead with alternative plans to cut $1.6 billion from the new two-year budget.

The unions have succeeded in scheduling another round of voting which some expect to conclude in mid-August with a more positive outcome.

Patricia Ciccone, the technical system’s superintendent, said the conundrum for her is that rival schools and state athletic groups/conferences need to begin putting together their fall game schedules now.

“You have to inform them if you’re not going to be able to field a team (to) allow them to try to put other schools into their schedule,” Ciccone said. “And we have to show we don’t have a program so our kids are eligible to play for the hometown high school in districts in which they live.”

Ciccone said while the other schools/sports groups have said they will try to wait until the very last minute i.e. until after the union vote, some cannot.

So even if state workers wind up okaying the $1.6 billion deal next month and Malloy reverses the layoffs/cuts, it may be too late for technical school students who play fall sports.

“We certainly could pick up winter and spring, but it’s iffy in terms of fall,” Ciccone said.

More on lawyer’s labor complaint against state union leaders

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We reported today on a labor complaint filed by a state prosecutor over the $1.6 billion concessions deal union negotiators brokered with Democratic Governor Dannel Malloy.

The complainant – Lisa Herskowitz, a senior assistant state’s attorney based in Manchester – amended her initial grievance yesterday. You can read copies of her original and her new gripes below.

Also, we reported that a preliminary meeting on the first complaint had been scheduled before the state Board of Labor Relations for next Wednesday.
Here’s a bit more information on that. According to Nancy Steffens, a labor department spokesman, one of four things will happen at the meeting, which is not open to the public:
1. The sides will reach a settlement, which Steffens said happens 90 percent of the time.                                                                                                                                                                      2. An additional conference will be scheduled.
3. The matter will be dismissed.
4. A determination will be made the complaint has merit and the case will be assigned a number and proceed.


Just when state officials think they can’t cut any more…

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It’s a fairly commonplace debate within federal, state and local government. Majority lawmakers claim they have cut as much as possible from state budgets, and the minority and frustrated taxpayers argue there has got to be more fat that can be reasonably trimmed.

At least twice during his first seven months in office, while grappling with an inherited budget crisis, Democratic Governor Dannel Malloy has given the “you didn’t cut enough” crowd reason to be skeptical.

The first time occurred in May, when Malloy, whose administration at the time was seeking $2 billion worth of union concessions, released his “Plan B” budget to show the impact on government and services should there be no employee givebacks. Although many of the cuts might have indeed proved disastrous for the state, some begged the question, “Why weren’t these in the governor’s ‘Plan A’ budget’?”

Then today fellow Hearst reporter Ken Dixon reported that Malloy is impressed with several cost-cutting ideas proposed by his commissioners in light of the unions’ failure to ratify a $1.6 billion concessions deal.

Although the givebacks may be salvaged and layoffs prevented, Malloy, according to Dixon, said, “There are still many good ideas in these plans.”

So again the question needs to be asked, where were these proposals earlier this year? Is a fiscal crisis just not enough to get folks in government to focus on finding real efficiencies? They need the unions to reject a concessions package, leaving the budget unbalanced, to really take a serious look at cutting costs?

State Manager on Layoff Limbo: “A lot of work has come to a screeching halt.”

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Believe what you will about public employees, but it has got to be difficult to work for Connecticut government right now because of the climate of uncertainty.

On the one hand, unions voted down a $1.6 billion concessions package needed to balance the budget, resulting in Governor Dannel Malloy initiating layoffs.

On the other hand, those jobs, which could number in the thousands, may be saved if union leaders and Malloy find some way to salvage the deal.

Imagine being one of the unlucky ones targeted in the first round of layoff notices, seeking a daily dose of hope in the form of constant media reports about the status of ongoing talks between labor and the governor.

But even if the deal is revived you’re still in limbo because there has to be another vote to ratify.

I spoke Friday evening to one state manager – who declined to be identified – who said the entire situation has cast a pall over government.

“I can tell you a lot of work has come to a screeching halt because of this,” they said. “It’s just waiting … Just the idea of your manager appearing at your door is just terrifying for a lot of people.”

The administration wants the layoff notices to be personally delivered, and this individual has already had to layoff a couple of employees.

“It couldn’t be a sh—-er feeling to deliver the news, but pales in comparison (to losing your job),” the manager said.

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