Governor and State Union Leaders Reach Tentative Deal

Governor Malloy and state union leaders came to a tentative agreement Tuesday that could save the state billions of dollars in coming years.

Officials said the deal is expected to save about $1.5 billion over the next two years alone, money that can help close the state’s budget deficit.

The deal includes a three-year wage freeze and increases employee contributions for pensions and health benefits. Employees will contribute 2 percent more to their pensions. The redesign to the health insurance plan means employees will pay about 3 percent more for premiums, and more for co-pays on prescription drugs.

The deal also rescinds layoff notices issued since April, and provides job security protections through 2020.

The deal is expected to save $710 million in 2018 and gradually increase so that in the next 10 years the state will save around $10 billion.

Union leaders still need to take the deal to union members for a vote.

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