June 7, 2011

LEGISLATURE SAYS NO TO BORROWING $956 MILLION
Surplus Eliminates Need to Extend Surcharge On Utility Bills to Balance Budget

Deputy Speaker of the House Kevin Ryan is pleased the House voted Monday to repeal an authorization for the state to borrow $956 million that would have been used to fill a deficit in this year’s budget that no longer exists.

Anticipating a deficit in the 2011 budget, the General Assembly last year approved legislation authorizing the issuance of Economic Recovery Revenue Bonds. The bonds were to be paid off from revenues generated by surcharges on electricity bills, which would have been extended past their expiration date this year.

But because of an improving economy and increased revenues, it is now projected that the state has a $680 million operating surplus. Consequently, the borrowing and extension of the surcharge are no longer necessary.

“The provisions of this legislation (HB 6652) close the door on using energy efficiency or Competitive Transmission Assessment funds to balance the state’s budget,” said Rep. Patricia Widlitz (D-Guilford, Branford), House chair of the legislature’s Finance, Revenue and Bonding Committee. Connecticut’s energy efficiency programs are among the best in the nation and should be strengthened – not compromised, she added.

“This really is a win-win situation,” said Deputy Speaker Ryan. “Ratepayers win by having the surcharge removed from their bills, and the state wins because we don't need to borrow additional funds.”

Rep. Ryan is in his tenth term serving the 139th House District.