Senator William H. Nickerson (R-Greenwich) announced today that he will be supporting the budget negotiated by legislative leaders and the Governor. As Ranking Member of the Finance Committee he was included in some of the leadership budget meetings.
Nickerson said “Every budget is a compromise reconciling competing interest, and this one is no different. The highlight of the budget is what is not in it. There are no increases in the income tax, corporate tax, or sales tax, all of which had been proposed. There will be an increase in the state tax on cigarettes from $1.51 to $2.00 per pack. The Democratic leadership had enacted a now vetoed bill with a 40% income tax increase on top bracket income taxpayers and a new sales tax on clothing under $50, and also proposed a corporate tax hike – all now gone. Other positives in the budget include:
- A substantial, and rare, increases in annual state aid to towns in my district:
Greenwich $1,092,000
Stamford $1,125,000
New Canaan $ 378,000
- Strengthened education accountability and performance measurements in exchange for increased state aid for local schools.
- Medicaid rate increase to make healthcare more accessible for the uninsured.
- Tax credits to provide incentives for purchase of energy efficient equipment.
There are also significant negatives:
- An 8.9% increase in spending in the first year, well in excess of what is permitted by the state’s constitutional spending cap. This is achieved by a declaration of a so called “emergency”.
- Use of a large portion of the current year projected surplus of $918 million in order to fund current ongoing programs over the next two years, thus leaving an unfilled hole in the budget for later years.
- Depositing $193 million in the budget reserve fund, known as the “rainy day” fund, bringing it up to 7.4% of the state annual budget, which is still well short of the goal 10%
On balance, however, this is the best budget which could be obtained in the current political circumstance. |
