On Monday, March 13th, New York Governor George Pataki announced a new contract with the state's 77,000 Civil Service Employees Association (CSEA). 

Pataki declared: "This contract demonstrates our commitment to the hard-working men and women of CSEA, as well as our efforts to safeguard the interests of taxpayers."  From the taxpayer point of view, nothing could be further from the truth.  In essence, Governor Pataki gave away the store to the union.

The four-year deal includes salary increases of 3% retroactive to October 1999, 3% in April 2000, 3.5% in April 2001, and 3.5% in April 2002.  Each increase far outpaces inflation, including a whopping hike of better than 6.5% between now and next month.  In addition, state taxpayers will be tapped for $500 lump sum payment to each employee "as soon as practicable."

State taxpayers also will fork over more money for health, retirement and other benefits. 

For good measure, some state employees make more money because of where they live in New York, and that existing differential will increase from the current $823 to $1,000 in April 2000, $1,100 in April 2001, and $1,200 in April 2002.

No wonder-even after some small-to-medium-sized tax cuts earlier in the Pataki administration-New York is still grossly overtaxed.  In the Empire State, big labor still rules, so New York families, entrepreneurs and businesses still lose.