Greater New Haven lawmakers talk pensions, politics at Chamber breakfast

Jan. 20--NORTH HAVEN -- State Sen. Ted Kennedy Jr. told business leaders Thursday that the state can't continue to rely on the hospital tax as a revenue source, although the issue could be moot given policy changes on Medicaid that the new administration may introduce.

Kennedy, the Democratic senator from the Shoreline, was one of seven lawmakers who answered questions at the Greater New Haven Chamber of Commerce's legislative breakfast held at the Quinnipiac University Center for Medicine, Nursing and Health Sciences.

Kennedy said right now it looks like the states may get a per capita block grant for Medicaid, which he also said will not be too harmful if the state's base rate is "calculated on what we are currently spending."

If that is trimmed, however, "I think hospitals will be in trouble and I think people won't have access to health care," the senator said, given the possible repeal of the Affordable Care Act.

In 2002, the state taxed the hospitals $349 million, but they got that back with $50 million extra. This year, they were taxed $566.1 million with a $117.6 million reimbursement, leaving them with a $448.5 million tax bill.

"We have a lot to do in our state to figure out how we are going to adjust," Kennedy said of the state's fiscal problems and expected federal cuts.

As far as reducing health care mandates, Kennedy said he would have to consider them one by one.

"I think many, many of those mandates are actually good things for the public health of our state," he said.

The general theme was to make the state more business friendly, as well as reduce taxes and spending.

There also was a sharp difference between some of the legislators on the topic of state pension costs and voting to reduce the liability sooner, rather than later.

State Senate Republican Pro Tem Len Fasano of North Haven talked about structural changes involving health benefits and pensions.

Fasano now shares power in the Senate with state Senate President Pro Tem Martin Looney, D-New Haven, after the Republicans gained seats, 18-18, in the last election.

He said $5 increases in cost sharing for doctor visits and drug purchases for state workers would save $150 million.

But the big issue remains pension costs, where workers in the oldest plan pay nothing into their pension, with 75 percent paying 2 percent, he said.

If that were boosted to 4 percent, there would be a savings of between $130 million and $170 million in one year, Fasano added. He said both changes could help pay for core services of government.

On infrastructure, he said tolls won't do it. Instead it should be made part of general obligation bonding.

House Minority Leader Themis Klarides, R-Derby, said the Democrats have to answer as to why they are not willing to take a vote on union contracts. Those contracts are negotiated by the governor's office and go into effect automatically if the legislature does not vote on them within 30 days.

By a party line vote, 76-72, on Jan. 4, Democrats rejected a requirement to vote on all agreements reached through collective bargaining. At the time, Democrats didn't rule out a vote at a later date.

The contract change before lawmakers shifts some $13.8 billion in pension expenses due before 2032 to a later date.

"The state of Connecticut is the state's largest employer. How could we not look at pensions?" Klarides asked.

"This is not about whether we like or dislike unions. This isn't about whether they are good or they are bad," Klarides said. "We have the right to see those contracts and vote for them."

She said union contracts, health costs and pensions make up over half of the state's budget.

State Rep. Joshua Elliott, D-Hamden, a freshman lawmaker, said a big issue in the state is the lack of a consumer base.

He said Connecticut has the second-largest income inequality gap compared to other states, as well as the second-highest number of millionaires.

"My feeling is there is not enough money for our workers," Elliott said, a position he felt would not be a popular one at the forum.

He wants the minimum wage bumped up and said if people had a livable income, they could buy more goods and support more businesses.

On the pension issues, he said there is a long run-up to an agreement and he questioned what lawmakers could add to the debate.

"My feeling was this was more of a political move to make our speaker of the House (Rep. Joe Aresimowicz, D-Berlin) look silly because he is, of course, a union organizer," Elliott said of the move to mandate a vote on contracts.

He said thousands of things motivate people's behavior and if the emphasis is mainly on taxes it will put lawmakers "into a very myopic view of what is possible."

Klarides said she took "offense" at Elliott's charge that the Republicans were trying to embarrass the speaker.

"He is a friend of mine. We work very well together ... and that is what allows us to come up with the best possible solutions to the problems of the state of Connecticut," Klarides said.

"But I will say one thing -- excuses as to why you are afraid to vote for something, will not move the state forward. It wasn't silly, Representative, it wasn't for embarrassment purposes. It was because it is our job," Klarides said.

State Rep. Craig Fishbein, a Republican who represents Cheshire and Wallingford, said he was in favor of cutting the gift and estate tax "that cajoles people to move out of the state." He said the tax on pensions also has the same impact.

But Fishbein said the question is how to make up for that loss of revenue or which programs do you cut. As a freshman lawmaker, he described himself as "moldable clay," as far as policy positions are concerned.

State Sen. George Logan, R-Ansonia, said the state was "overregulated," something that is discouraging the business climate. He said changes, however, would have to be made on a case-by-case basis.

State Rep. David Yaccarino, R-North Haven, in answer to a question, said he would take steps to protect the Educational Cost Sharing and PILOT funding to keep New Haven stable.

"I would do it for all towns," he said. Yaccarino added that the solution for every municipality is "high paying jobs ... so there is less burden on the PILOT."

State Rep. Vincent Candelora, R-North Branford, said he favors paving a portion of the safety area at Tweed New Haven Airport to allow for increased use of that facility.

"We have pushed food around the plate a long time," on that issue, he said. Businesses, universities and New Haven officials have lobbied a long time to upgrade the airport as an economic boost.

___

(c)2017 the New Haven Register (New Haven, Conn.)

Visit the New Haven Register (New Haven, Conn.) at www.nhregister.com

Distributed by Tribune Content Agency, LLC.