Connecticut Senate Bill SB00362

Connecticut 2011 Regular Session

• Introduced: 1/20/11
• Refer: 1/20/11

Caption

An Act Concerning Municipal Budget Reserve Balances And Municipal Arbitration Reform.

Impact

This bill is significant as it offers municipalities greater latitude in financial negotiations by potentially reducing the financial burden imposed by arbitration decisions. It allows local legislative bodies to reject arbitration awards with a supermajority vote (two-thirds), compelling municipalities to engage in negotiations instead of automatically adhering to arbitration outcomes. If negotiations fail to yield an agreement within 45 days post-rejection, the parties would then be required to submit to binding arbitration, thus providing a structured resolution process.

Summary

SB00362, titled 'An Act Concerning Municipal Budget Reserve Balances And Municipal Arbitration Reform,' aims to revise how municipal budget reserve fund balances are considered during arbitration proceedings. The bill proposes that if a municipality's budget reserve fund balance is ten percent or less, this will not be factored into the financial capability evaluation by arbitration panels. This change is intended to assist municipalities facing budget deficits by providing them with more favorable arbitration conditions.

Contention

The key point of contention surrounding SB00362 relates to the balance of power between local governments and arbitration panels. Proponents of the bill argue it restores local control and enables municipalities to make decisions that better fit their unique financial situations, particularly during fiscal challenges. Opponents may contend that this reform could undermine the strength of arbitration as a fair resolution mechanism for disputes involving public employee unions, potentially leading to long-term ramifications for labor negotiations.