One of my great disappointments of the 2008 Legislative Session is the General Assembly’s failure to adopt adjustments to our state budget that equips Connecticut to meet the challenges of these difficult economic times.
It did not have to be this way. Rather than make due with an existing 2008-2009 budget that does nothing in this economic climate to address the looming budget deficit, which I believe will be significant, Republicans offered a plan that would have strengthened the ability of our families, our non-profit social service providers, and our jobs-providing businesses to survive.
But in the waning days of the legislative session, Democratic leaders used every tool at their disposal to prevent even a debate – never mind a vote – on the Republicans’ alternative state budget proposal. Thus, the so-called “do nothing” budget, supported by the Governor and Democratic leaders, will take effect on July 1st, even though we already know that it will lead to a deficit of $40 million to $100 million.
So, what did Republican legislators propose doing as an alternative to sticking with the 2008-2009 state budget passed by the General Assembly a year ago, which most observers believe will lead to a substantial deficit? For starters, we proposed adopting a tax and spending package that was balanced, would not raise taxes, streamlined government and would help us avoid potentially huge state budget deficits in the coming years.
The Republicans’ alternative budget called for spending $16.853 billion next year. Instead, because the General Assembly chose to do nothing, Connecticut’s state budget for 2008-2009 is $17.073 billion. That is just the beginning of the differences between the Republicans’ alternative budget proposal and the state budget Connecticut is being forced to live with.
Among other things, the Republican proposal would have:
- Cut gas prices by 10 cents per gallon through a summer state tax moratorium and canceled the scheduled July 1st gross receipts tax increase of 0.5 percent on July 1st.
- Phased out the annual $250 Business Entity Tax – the so-called “tax on existing” – over two years.
- Phased out of the estate tax “cliff” over two years.
- Re-established the early reading success program.
- Provided a one percent cost of living adjustment for private non-profit social service providers and nursing homes.
- Provided an additional $5 million for the Town Aid Road grant program. Increased funding for Vo-Ag programs by $1 million.
The Republicans’ alternative budget proposal included funding for the criminal justice reform package, along with funding for additional initiatives passed by the General Assembly this year, including one that expands a program to permit eligible nursing home patients receive the care they need at home.
We would have paid for the Republican budget proposal with the approximately $163 million in savings we would have realized by offering an early retirement incentive program to state employees. Of the 11,600 eligible employees, it is expected that about 4,233 would have participated. Our plan took into account the need to re-fill necessary positions, including those in critical areas such as prisons and state police. Our estimates were confirmed by the state’s non-partisan Office of Fiscal Analysis.
In my opinion, it is just a matter of time before we have to make some very difficult decisions to address the state’s budget problems. The Republican budget proposal would have represented a responsible first step in that process. With the refusal to even give our ideas a vote, legislative leaders have postponed these tough choices and, I believe, will have contributed to making the underlying problems even more severe when they are finally addressed next year.
As always, I welcome hearing from you. I can be reached at my legislative office in Hartford at 860-240-8800, or via e-mail at sam.caligiuri@cga.ct.gov
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