State Representative Mike D Agostino and Other Legislators on the SEBAC Agreement A Game Changer for Connecticut s Economy

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State Representative Mike D'Agostino and Other Legislators on the SEBAC Agreement


In a recent video, State Representative Mike D’Agostino and other legislators discuss the SEBAC (State Employees Bargaining Agent Coalition) Agreement, which has the potential to bring about significant changes to Connecticut’s economy and save billions of dollars. This agreement aims to make deep structural changes to the state’s workforce while ensuring the value and dignity of the work done by state workers. In this article, we will delve into the key points discussed in the video, explain the impact of the agreement, and explore the long-term savings and benefits it offers.

Step 1: Understanding the Savings and Concessions in the SEBAC Agreement

The SEBAC Agreement offers significant savings and concessions for both the short and long term. In the short term, it is expected to save over $1.5 billion over the biennium, with $700 million in total savings for fiscal year 2018 and $868.6 million in savings for fiscal year 2019. These savings are achieved through various components, including wage savings, furlough days, and changes in employee and state contributions to pension plans.

Step 2: Achieving Structural Changes to the Workforce

One of the key aspects of the SEBAC Agreement is the deep structural changes it brings to the state’s workforce. With a focus on long-term savings, the agreement aims to save $210 million in the first year and $238 million in the second year through increases in employee contributions, decreases in state contributions, cost-of-living restructuring, and other changes. These changes lead to significant savings in pension actuarial contributions over the long term, with projections of up to $500 million in savings over the next several years.

Step 3: Healthcare Savings and Plan Design Changes

The SEBAC Agreement also includes measures to achieve substantial healthcare savings. These savings amount to $154 million in the first year and $261 million in the second year and are achieved through various measures, including increases in drug co-pays, structural plan design changes, and premium cost-share increases. These changes contribute to the overall goal of saving $5 billion over five years and $24 billion over twenty years.

Step 4: Balancing the Workforce

In addition to the savings and concessions, the SEBAC Agreement introduces a new class of employees hired after July 1, 2017, who will participate in both a defined benefit plan and a defined contribution plan. This helps balance the workforce and ensures fair compensation for all employees. Furthermore, the agreement includes increases in employee pension contributions, both in amount and over time, from 10 to 15 years. These changes contribute to the long-term stability and sustainability of the state’s pension system.

Step 5: The Medicaid Advantage Plan

The SEBAC Agreement also addresses the issue of retiree healthcare costs by moving retirees to a Medicaid Advantage plan. This change is projected to save $200 million in the biennium and offers additional savings in the out years. It is important to note that this change cannot be made unilaterally, as it would violate the contracts clause of the United States Constitution. However, it can be achieved through collective bargaining, which is the approach taken in the SEBAC Agreement.

Step 6: No Layoffs, but Reductions in State Workforce

Contrary to popular belief, the SEBAC Agreement does not prohibit layoffs. While the agreement includes a no-layoff clause, it is important to understand that it applies to the current bargaining unit members and does not prevent reductions in the state workforce. In fact, the agreement allows for reorganizations and layoffs of new workers who were hired after July 1, 2017. This flexibility ensures that the state can still make necessary adjustments to its workforce while maintaining the overall savings and structural changes outlined in the agreement.

Conclusion: Preserving Collective Bargaining and Protecting Connecticut’s Middle Class

The SEBAC Agreement represents a crucial turning point for Connecticut’s economy. It offers substantial savings and concessions in the short and long term, leading to billions of dollars in savings over the next two decades. While there are concerns and reservations about certain aspects of the agreement, it is important to remember that collective bargaining is a fundamental aspect of the state’s economy. By accepting this agreement, Connecticut is protecting its workforce, preserving the middle class, and ensuring a stronger, more stable future for the state.

In Closing

In this article, we have explored the key points discussed in the video featuring State Representative Mike D’Agostino and other legislators on the SEBAC Agreement. From the significant savings to the deep structural changes in the workforce, this agreement has the potential to bring about long-term positive changes for Connecticut’s economy. It is important to embrace the benefits of collective bargaining while also ensuring that the state’s fiscal situation remains stable and sustainable. The SEBAC Agreement represents a step in the right direction and offers hope for a brighter future for Connecticut.

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