Budget would retain local funding

Capitol Commentary
By  Mary Ann Carson

HARTFORD-  House and Senate Republican legislators have proposed a 2009-2011 alternative state budget that would retain existing state funding for towns in the 108th District (Kent, New Fairfield, New Milford and Sherman) without raising taxes. The budget package would preserve vital state programs and services at 2007 levels, and greatly reduce government costs through cuts, agency mergers, retirements and salary and benefit concessions.

The proposal would also retain the $500 property tax credit for families earning as little as $46,000 that would be eliminated under the budget package approved by the Legislature’s Appropriations and Finance, Revenue and Bonding Committees, through largely party-line votes, on April 2. I detailed that budget package, which would require $3.3 billion in new taxes — the largest tax hike in state history — in my April 15 column.

Republicans have pledged to work with Democrats and Governor M. Jodi Rell to produce a two-year budget Connecticut can afford and not drive more jobs out of state through tax increases. Gov. Rell’s February budget proposal also had no tax increases, but state revenues have continued to deteriorate and the plan unveiled April 16 accounts for the revenue drop projected by the non-partisan Office of Fiscal Analysis (OFA).

Additional highlights of the Republican alternative budget are:
• Early retirement to save more than $285 million;
• State worker concessions for salary, health care and pension benefits that save $662 million;
• Folding 23 agencies into six and implementing a hiring freeze to reduce overhead costs. Two more agencies would be merged into the General Fund;
• Overhauling the higher education bureaucracy that duplicates services and drives up tuition for families struggling to pay for college;
• Using the Rainy Day Fund for what it was intended – fiscal distress;
• Imposing $900 million in budget cuts;
• Engaging private companies that can perform duties such as state park maintenance

This budget alternative actually represents a bi-partisan effort because it was crafted using the parts of the Governor’s and the Democrats’ budget proposals. While additional adjustments will be made to the product that is ultimately passed, the plan introduced on April 16 takes elements of both and also clearly addresses the public’s desire for no tax increases and shrinking the size of state government.

There are difficult decisions made in the alternative budget. However, as previous columns have noted, the state faces an unprecedented fiscal crisis and tough calls must be made. Legislative leaders and Governor Rell are scheduled to begin formal budget negotiations this week. I look forward to providing updates on any proposals that come before the full Legislature in the coming weeks.