| By Senator Rob Kane
The Democrat-controlled General Assembly spectacularly
failed Connecticut’s families and businesses when
it ended the summer by burdening them with an unaffordable
– and irresponsible - $37.6 billion biennial state
budget.
As I said during debate on the floor of the Senate,
I had hoped to be able to vote in favor of a state budget.
After all, Governor M. Jodi had already vetoed one disastrous
tax and spend plan and, in the absence of a budget,
had been operating the state by executive order for
the past two months. However, I could not in good conscience
vote for the budget finally passed during the early
hours of September 1st because I believe it will cost
us more jobs and drive families and businesses out of
Connecticut.
I share the dismay of many constituents who understand
that imposing a so-called “millionaires’”
tax, placing a temporary 10% surcharge on larger businesses,
and increasing a wide variety of state license and permit
fees is not going to help Connecticut emerge from this
recession. Connecticut’s more wealthy residents
are not immune to the effects of the economic downturn,
and at least some of them are likely to respond to this
tax increase by relocating and depriving the state of
the taxes they already pay. Businesses burdened with
the surcharge will surely pass this additional cost
along, perhaps by raising the cost of their goods and
services or by laying off workers. Those who need a
state license or permit will see these increased costs
for what they are – tax increases.
Furthermore, families and businesses looking forward
to promised tax relief in the form of a .5 percent decrease
in the sale tax beginning on January 1st are likely
to be sorely disappointed. If tax revenues fall too
far below expectations, that anticipated tax cut will
be repealed – if it ever takes effect at all.
In any case, Connecticut’s new budget will still
cause state taxes to increase overall by $880- to $1.2
billion over the next two years.
None of this is good news for Connecticut. However,
Republican legislators are not about to admit defeat.
We know there are steps the General Assembly can take
even now to lessen the harmful consequences of our new
state budget. By the time you read this, the General
Assembly most likely will have met in special session
to pass legislation necessary to implement the new state
budget. Republican legislators are taking advantage
of this opportunity to offer our proposals for lessening
the tax burden on residents of Connecticut’s towns
and cities.
The best way to accomplish this is through mandate relief.
For many years now, municipal officials have been begging
the General Assembly to refrain from imposing unfunded,
or underfunded, mandates on local government. When legislators
pass a law requiring towns to provide a service or a
program, but do not provide the money to pay for it,
the cost is passed along to local families and businesses.
If ever there was a good time for the General Assembly
to heed their request to lighten that expensive burden,
the time is now.
Republican legislators have proposed a five-point
plan to provide much-need relief for municipal governments
and the people they serve. Our plan calls for:
• Delaying implementation
of the state law requiring schools to provide in-school
suspension at a cost of millions of dollars for hiring
additional certified staff and providing dedicated space.
• Delaying implementation
of policies that raise the age of juvenile offenders
from 17 in order to save local police departments approximately
$95 million in personnel and constructions costs;
• Delaying a requirement
that towns and cities post meeting notices and minutes
on municipal internet sites within a certain time period.
• Requiring a two-thirds
majority vote by the legislature – instead of
just a majority – in order to impose future mandates.
• Adding “services’’
to the list of purchasing contracts that the state Department
of Administrative Services can enter into for municipalities.
It is my hope that by the time you read this, the
General Assembly will have adopted our plan for alleviating
the tax burden on residents of Connecticut’s towns
and cities. If that is not the case, then I will continue
to work with legislators in a bipartisan manner to pass
common sense, practical mandate relief legislation.
Meanwhile, Republican legislators will continue to
offer their ideas and proposals for making our state
government smaller, more efficient, and less expensive.
The fact that Connecticut now has a two-year state budget
that Republicans oppose because it does not accomplish
these goals does not mean that we are giving up the
fight. I want to assure you that I will continue to
work with fellow legislators to transform our state
government so that it better meets our needs. As always,
I hope you will continue to share your concerns and
ideas with me.
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