Rep. Klarides and Fellow Republicans Call for Delaying Longevity Payments

by: streadwell Thursday, March 11th, 2010

 

Republicans Call for Delaying Longevity Payments
State Cannot Afford Millions in bonuses with $500 million Budget Deficit

    
Representative Themis Klarides along with fellow Republicans today said the millions of dollars in longevity bonuses scheduled for thousands of state employees April 1 should be delayed due to the state’s $500 million budget deficit.

Twice a year the state pays longevity payments to employees who worked for at least 10 years in the state government. Bonuses for unionized employees are included in collective bargaining, but besides those, thousands of other employees have their longevity payments determined by statute. House Republican Deputy Leader Themis Klarides, said those bonuses should be changed by the legislature the next time it is in session.

“Last year the state borrowed $1 billion just to cover basic operating expenses and critical programs such as education and social services are being eyed for cuts. Non-profits and small businesses alike are struggling in this economy. Here we are with the state budget hundreds of millions of dollars in deficit and handing out thousands in bonuses. In some cases they run in the tens of thousands of dollars. We simply cannot afford to pay big bonuses at a time like this,’’ Rep. Klarides said.

Last year the bonuses cost the state of Connecticut nearly $43 million for thousands of employees, according to reports. Union bonuses were capped at just over $1,000 while non-union bonuses reached a maximum of $24,000 based on salary and service time. The highest bonus reported was more than $24,000 for the CSU chancellor.

She hopes the overall issue of bonuses for state employees can be dealt with to include unionized workers. “Those covered by collective bargaining must be dealt with fairly like the hard working state employees they are,’’ Rep. Klarides said. “However, the legislature can act now to cut spending. We must reduce our deficit wherever we can find savings.’’

Rep. Klarides said legislation to delay the payments could be offered before April 1. The state’s deficit grows larger everyday without any significant cuts meaning the situation grows more dire the longer we wait, she said. She noted that attempts to curtail the payments have been made in the past. Republicans first proposed the elimination of the bonuses last year.

Rep. Klarides wants the legislature to address the deficit mitigation plan as soon as possible and thinks cutting back on the bonus payments should be part of the overall plan.

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