Recently, the General Assembly’s Appropriations Committee, which is in charge of crafting the state budget, passed legislation that makes fiscal adjustments to the 2007 portion of the two-year budget plan that had been approved last year.  I found the bill to be wholly irresponsible to the taxpayers of my district and the state as a whole and thus did not support it. 

Estimates indicated that Connecticut was looking at a $661 million surplus for Fiscal Year 2007, which actually presented a wonderful opportunity for the Committee to maintain needed state services, while keeping spending under control and providing financial security for the state for the next several years.  Unfortunately, the Majority Party that controls the Committee chose to squander this opportunity by increasing spending by about 17% over two years.

It may be hard to believe, but the budget that passed the Appropriations Committee creates a budget deficit for Fiscal Year 2008 of over $900 million, with some estimating that it could surpass $1 Billion.  Essentially, the Majority Party turned a $661 million surplus into a $900 million deficit in one year’s time, which is completely irresponsible, not to mention unfair to each and every taxpayer in the state. 

As anyone who manages their own finances realizes, crafting a family budget involves not only considering today’s expenses, but expenses down the line, as well.  The same principle applies to the state budget, but unfortunately some legislators do not seem to realize this.  The Appropriations budget took over $200 million from the sizable surplus from 2006 and used it to expand government. 

A much wiser use of the surplus would have been to contribute significantly to the state’s teacher retirement fund, which is currently facing an estimated $5 billion unfunded liability.  Connecticut public school teachers rely on the state’s retirement program, rather than the federal government’s social security program, for their pensions and for years the legislature has failed to make adequate contributions to this fund.  Teachers are one of the state’s most valuable resources and as a legislature I feel it is our obligation to ensure that their pensions are secure.  This surplus could have been our opportunity to do just that, yet the Majority Party felt otherwise.

In addition, this bill does very little to promote private job growth.  It rejects Governor Rell’s proposal to reorganize the State’s Department of Economic and Community Development, which was aimed at growing Connecticut’s economy.  In fact, in a time when the size of government should be shrunk, the only new jobs added are 250 and 300 new state positions.  This is after around 400 state employees were added in the last budget. 

If spent correctly, the huge surplus presented the opportunity for tax cuts for Connecticut residents, or at the very least a freeze in any tax increases.  But instead, the bill pays no attention to the heavy tax burden currently facing Connecticut citizens. 
By misusing the surplus and increasing spending, there is no room for any of the tax cuts proposed by both my caucus and the Office of the Governor.  Furthermore, the projected massive deficit will force the legislature to either massively cut state programs in 2008 or, more likely, increases taxes by hundreds of millions of dollars to balance the budget.

With all the spending, it is unfortunate that some critical state services were ignored.  The State’s Soldiers, Sailors, and Marines Fund provides financial assistance for the state’s veterans for just about anything from rent and mortgage payments, to prescription medication and medical care.  In the past, any excess expenses incurred helping our state’s veterans would be covered by the State’s General Fund, yet the Appropriations legislation raids money from the principle of the Soldiers, Sailors, and Marines Fund to cover these costs.  It is amazing to me that with a $661 million surplus, the Majority Party could not find any money for our state’s veterans. 

It is important that the citizens in North Haven, East Haven, and Wallingford and across the state understand the fiscally irresponsible choices some legislators are making. There is no reason that we should put the state in a nearly $1 billion hole in one year’s time.  I promise to continue to advocate on behalf of more responsible spending choices and keeping state taxes at reasonable levels.

If you have any additional questions on the budget please feel free to e-mail me at Len.Fasano @cga.ct.gov or call my office toll-free at 1(800)841-1421.