By State Senator
Toni Boucher
The national housing crisis and ensuing credit and
bank failures, to which government responded with massive
bailouts, have resulted in tea parties across the country,
including Connecticut. These tea parties are an expression
of public outrage over excessive spending and participants’
fear of burying future generations in debt.
People are becoming more aware of how government spends
their money, particularly in Connecticut where April
30th is this year’s tax freedom day, meaning state
residents must work approximately 120 days this year
to pay their taxes. Our tax freedom day occurs last.
Governor M. Jodi Rell spoke for many when she said:
“People have had it, and they are letting their
collective voices be heard here in Hartford and across
the state. The bloat of bureaucracy is no longer affordable.
It is time to get back to basics.”
The legislature is now in the midst of a state budget
debate that will significantly affect Connecticut’s
future as no other has since the 1991 budget debate
that ended with enactment of the state income tax.
Connecticut’s tax policy plays a large role in
our state’s ability to prosper. Since the 25%
of Connecticut’s 3.5 million residents who live
in Fairfield County pay nearly 50% of the state’s
income taxes, higher taxes would disproportionately
affect them.
Recently, I hosted several public budget forums and
sought feedback from constituents. Understandably, they
want the state to cut spending and control taxes. They
want to know if protecting state jobs is killing private
sector jobs. Over 50,000 jobs were lost in the past
several months, including 14,300 in February. Connecticut’s
largest employer is now state government with about
50,000 employees.
To be clear, the Governor proposes a two-year state
budget but only the legislature has the power to approve
it. The Appropriations and Finance Committees can approve,
reject, or change it before submitting it for a vote
to the full legislature. Ultimately, the Governor can
sign or veto the budget passed by the legislature. In
the case of a veto, the legislature can attempt to override
or adopt a new budget to submit to the Governor. Since
Democrats have enough members to override a veto, it
is especially important for the public to make its views
known.
The state is facing a $7- to $9-billion deficit over
the next two years. In February, the Governor proposed
a budget that would close this gap, provide level funding
for schools and towns, reduce some state mandates, consolidate
23 state agencies and commissions, seek labor concessions
and use part of state’s rainy day fund.
In April, the legislature’s Democratic majority
proposed a state budget that would raise taxes by $3.3
billion. Their proposal includes a tiered income tax
increase up to 7.95%, a 30% surcharge on the corporation
tax, and a 30% surcharge of the estate tax. Also, it
eliminates 50 tax exemptions and tax credits on some
our most vulnerable businesses, eliminates the property
tax credit, seeks union concessions, accepts some of
the Governor’s spending cuts, borrows to pay debt
and uses all rainy day funds.
Most recently, the Republican minority offered an alternative
budget proposal which, although it includes proposals
from the Governor’s and Democrats’ proposal,
goes much further. It does not call for any tax increases,
freezes state employee wages for 18 months, requires
six annual furlough days of each state employee and
raises their medical co-pays, outsources some social
services, levels funding for schools and towns, and
provides some relief from state mandates.
With three major proposals on the table, there is much
to debate. Please make your views known as the state
budget we ultimately pass will affect you, and could
change our beautiful state forever.
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