Hartford, CT – State Senate Minority Leader John McKinney (R-Fairfield) and State Senate Minority Leader Pro Tempore Leonard Fasano (R-North Haven) today issued the following statements regarding revised state revenue estimates released last night by the Office of Policy and Management (OPM).  OPM is projecting a surplus of just $15.7 million for FY08 and $44 million for FY09.  Connecticut lost 3,400 jobs in March and for the first time this year OPM has reduced its revenue estimates from personal income tax withholding.

Senate Minority Leader John McKinney:

“These revenue estimates underscore the need for legislative leaders to act with the utmost caution and fiscal discipline as we meet over the next two weeks to negotiate the mid-term budget.  In just one quarter, January to April, we have watched our surplus shrink by more than $240 million.  If this trend continues, Connecticut will face a budget deficit in FY10 that could reach into the hundreds-of-millions of dollars.  We need to look for efficiencies in spending and make smart decisions now to avoid that outcome. 

“To that end, it is imperative that the Democratic majority forgo its ambitious new spending proposals and all of its proposed tax increases, including the ill-conceived Delivery Services Tax.  Connecticut residents are struggling with the rising costs of food, fuel, medicine and other necessities.  A tax increase now would only further strain their lives and our economy.  I am committed to working with Governor Rell and legislative leaders from both parties to find efficiencies in spending and pass a responsible budget that lives within our means and does not raise taxes.”

Senate Minority Leader Pro Tempore Leonard Fasano:

“If it wasn’t clear before, it is crystal clear now that the Democratic budget proposal is simply unaffordable.  On Friday, the non-partisan Office of Fiscal Analysis (OFA) reported that Democrats had underestimated by $34.5 million the cost of their proposal to increase staffing levels at nursing homes.  Add to that at least $100 million in new spending Democrats had previously admitted to, and you have a budget that is severely out of balance with no surplus available to pick up the bill.

“Connecticut’s economy is still outperforming that of most other states in the nation.  Moreover, 27 states including our neighbors in New York, Massachusetts and Rhode Island are experiencing a budget deficit.  In order to avoid joining them in the near future, we need to prioritize spending and recommit ourselves to fiscal responsibility.”

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