Senator McKinney addresses the press in his office at the State Capitol

HARTFORD –An important self-imposed Democrat deadline has come and gone without the Appropriations Committee identifying the $220 million in cuts Democrat leaders promised when the last deficit mitigation plan passed on February 25th.  House and Senate Republican leaders today said that the Democrats’ failure to identify the cuts will further jeopardize efforts to balance the FY09 deficit.

The Republicans charged that Democrat leaders are using tomorrow’s AIG bonus hearing as a distraction from their inaction on the budget crisis.  The Republicans also charged that Democrats are holding up a host of other important votes, including:

• changing Connecticut statute in accordance with federal guidelines to access $58 million in federal funds for unemployment insurance;
• streamlining the DEP permitting process to accelerate the economic stimulus projects that Governor Rell has identified as critical to protecting and creating Connecticut jobs; and
• fixing the Connecticut Wage Act    

“We need swift action on all these issues – fix the Connecticut law AIG has been using as an excuse to hand out huge executive bonuses, get the federal unemployment insurance and streamline our DEP permitting process so we can move ahead on ‘shovel ready’ economic stimulus projects,’’ House Leader Lawrence F. Cafero Jr.
(R-Norwalk), said. “Instead, we’re wasting more time doing nothing and the state budget is still in crisis.’’

Senate Republican Leader John McKinney of Fairfield said, “On February 25th, Democrats passed a law that required the chairpersons of the Appropriations Committee to find $220 million in cuts from off-budget accounts by March 25th.  They haven’t found the savings and are therefore in violation of their own statute,” said Senate Republican Leader John McKinney (R-Fairfield).  “We are more than halfway through the 2009 legislative session and the FY09 deficit still looms increasing the threat to the state’s rainy day fund and increasing the likelihood Democrats will rely on broad-based tax increases to balance next year’s budget.”

In addition to action on the state budget deficit, Republicans want to correct a flawed sate law that AIG has been using to justify giving executive bonuses totaling at least $165 million.  The Republican proposal would eliminate provisions that could result in fines equal to double or triple the amount of the original bonuses if the company does not live up to the terms of agreed upon contracts with workers.  Federal Reserve Chairman Ben Bernanke Tuesday cited Connecticut law as the reason he could not sue to stop the bonuses.

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