Connecticut Governor Dannel Malloy and the state employees union announced that they have reached a tentative contract agreement. The contract, which needs to be ratified by around 45,000 state employees, includes a two-year pay freeze, no furloughs, and changes to benefit plans. The contract would save the state around $1.6 billion this year, and the Governor says it would save $21.5 billion over the next 20 years. The Governor was trying to close a $2 billion deficit, and says that the rest will be covered through spending cuts. Malloy also agreed to rescind around 5,000 layoff notices that went out this week. Workers will vote on the contract in the coming weeks.
See "Conn., union leaders reach deal on $1.6b savings plan", Susan Haigh, The Boston Globe, May 15, 2011