JOHN DESTEFANO JR
8:50 No. 2368 P.
OFFICE OF THE MAYOR
165 CHURCH STREET * NEW HAVEN ¢ CONNECTICUT 06510
February 18,200
Dear Employees:
Yesterday, 96 City employes wre domed rom her obs a pt ofa workdorce veto
required to balance out the curgent and next fiscal year’s budgets, The result of these cuts will
mean residents will receive less in services and dozens of families will now face financial
Ihardship. This is not a mexstire which [ agreed to lightly, but rather a difficule choice which I
‘came to atcept as necessary given what choices the City has, I'do not blame eny City employee
forthe financial criss, the benefits awarded to them in their union contracts or for any jobs being
climinated now or in the furute. Yet, cis reduction in positions is the direct result of both the
necessity of balancing the budget and the lallure of lewlershi
Problems with he City budget ae ore a matter of ependitnes then evens, Tn fae had i
not been for Gov, Malloy’s state budget the layoff list this week would have been much longer
For the past several years the City has seen reventue from state ai shrink, healeheare and pension
‘expenditures rise, and we had passed those cost drivers and revenue shortfalls unto the
taxpayers in three out of the las four years, New Haven taxpayets are in the same financial boat
as are all of us, facing the same dificute choices and challenges. In revent years residents have
done their share as we bad acked of them, but they cannot afford another tax increase. We have
an unsusteinable expenditure problem with pension, healthcare and workforce costs,
(Over chis same period of che last four years the City had engaged union leadership on recurring
savings in contracts — not just one-time givebacks like furloughs or forgoing a raise. Many in
leadership ignozed the problem ot offered up something which couldn't be done or that was not a
securing savings. Yet, some answered the call and gave concessions, As a result those units had
no members lt off Loday al uc three ofthe Cie agauning units have tele conse pen
‘with the exception of police and fire 69 come open this summer and teachers in 2014. Current,
the atcempe is being made at che table or in axbiteation to get tecurring savings ta the form of
‘changes in healthcare, pension plans and custodial work role changes. Let me be clear that in
neither cace am {looking to take away Kealthcare or pensions, but we must tmake reforms as the
costs of the current plans are not sustainable over the years.
To date the City has ben unable to achieve any savings from cur discussions with union
eadership. Talks of both forraal and informal nature have failed to produce significant, recurring
savings for taxpayers or to secure any pension longevity for City workers, Without someone at
the negotiating table with the City who recognizes that these fiscal challenges are real, is willing
to lead and is able to make difficul: choices, we can expect that the City will be let to manage
the budget with the only tools it unilaterally has ~ position eliminations and service reductions.
[Neither of those are good choices for residents or the families of City employees. To hfs point in
time I have faled to get union leadership to recognize this is not a one or two year problem and.
phone 203.946.8200 fox 203.946.7683
“Tic esta pti the rf Soe Sac tua High Shoal in the Cnet
Th vison af Now Heer’ boon
Mayer cour teat sc”3:51AM Ne. 2369 F
‘because ofthat Thave not been able ts get chem to any agreernent. They sill choose to ignove the
gravity ofthe sicuation
‘We must reform our pensions and find alfordable healthcare for City employees. fn this ever
changing world of ours a new noxmal is emerging from this fia) crisis we ace now experiencing
City exployce benefit packages must be fisally reasonable, offer fait healthcare coverage, allow
Jong secving employees the right zo retire with dignity and be sustainable for the near Suture
ity employee benefics must come into line with benefits offered in the private sector in
comparable industries if we are to control costs ard have pensions in the furure. Leannot ell you
what the next five or ten years will hold for Amezica, but 1 can tell you this: « promise made
today which cannot be paid for ten or fifteen years down the road is not much of a promise at all,
“This nos ust a one or two year problem requiting 4 one or two year solution, rather this is about
sustainability for the near furure so we don't have position eliminations every other year,
“This round of workforce reduction will require the City to end doing some of things it has always
dowe in the past. Ie also requires us to be more productive in the ways of getting stulf done as we
become leaner and have fewer co-workers to depend upon when workloads increase. These cuss
ane felt across the boarc in virtually every aspect of government from teachers-te-palice-