Sustainability commission should be supported

Desperate times call for desperate measures. It's an overused phrase but one that accurately reflects the circumstances surrounding the city of Hartford and its grim financial outlook. Freshman Mayor Luke Bronin is facing fierce resistance from unions, nonprofits and others on his proposal to create a financial sustainability commission, but we largely support his efforts to truly reform the Capital City, whose ailing financial position has been recklessly brushed over for years.

With the city facing a $48.5 million deficit next fiscal year, and even larger deficits down the road, Bronin will need flexibility to reduce expenses wherever possible. And that puts union wages and benefits directly in the crosshairs.

The city of Hartford – and the state for that matter – can no longer be handcuffed by labor contracts that make it impossible to adjust to this new era of slow economic growth and stagnant wages. And by adjust, we mean the city needs the ability to freely reduce costs when spending significantly outpaces tax receipts.

We aren't advocating for the end of collective bargaining, but Hartford must have greater power to renegotiate contracts city taxpayers can no longer afford. And that's what the financial sustainability commission would allow for; specifically, it will serve as an arbitration panel if the city is unable to reach agreements with its unions. It would also give an oversight board made up of various constituents, including two business representatives and one union representative, among others, final say over new labor contracts and the ability to negotiate pension and health benefits.

The City Council would still have a final say on the commission's recommendations.

Organized labor has accused Bronin of union busting. No doubt this is a much tougher stance on unions than many city employees are used to, particularly from a Democratic mayor. (It's ironic that Connecticut's two highest-profile Democrats — Bronin and Gov. Dannel P. Malloy – have turned into enemies No. 1 and 2 of organized labor). Again, this is another clear sign that desperate times require desperate measures.

To be fair, Bronin's commission proposal doesn't simply target organized labor. He's asking for shared sacrifice, including the power to levy a commercial property tax surcharge – likely targeting the city's largest property owners — and establish a payment-in-lieu-of-taxes program for nonprofits.

Both of those proposals have raised concerns – particularly among not-for-profits, like hospitals, facing their own budget woes – but not outright opposition from the MetroHartford Alliance, the city's top business lobby typically loathe to any threat of tax increases.

In its response to Bronin's proposal, the Alliance asked for a cap on any surcharge and also for the entire commission to be sunset by the end of fiscal 2019. Along with city employee compensation reforms and pension reductions, the Alliance also wants residential homeowners to contribute more — all fair and reasonable demands in exchange for potentially soaking Hartford's largest taxpayers and employers with higher costs.

More importantly, Bronin's proposal doesn't mention increasing the city's highest-in-the-state 74.29 mill rate, a move that would further deteriorate small businesses' ability to operate in the city. Of course, Hartford doesn't need the state's permission to raise its mill rate, but Bronin has wisely said publicly such a move risks “killing a city.”

Bronin will have to risk much of his political capital early on if he is going to get his commission passed by the state legislature, but the price will be worth it. Without greater flexibility to deal with its fiscal crisis, Hartford's financial position will continue to deteriorate. If that happens the end result could be a state takeover or bankruptcy — two scenarios that will be even more unpleasant to city workers and pensioners. The surrounding region, as Bronin has noted, will also feel the pain of a weakened Capital City.

Let's hope we can avoid those outcomes.

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