May 6, 2010
DEMOCRATS, GOVERNOR REACH BIPARTISAN BUDGET AGREEMENT
Budget balanced on time with no tax increases
State Representative Juan Candelaria (D-New Haven) along with fellow legislative Democrats announced a bipartisan agreement with Governor M. Jodi Rell that balances the state budget through fiscal year 2011 with no tax increases, no cuts in municipal aid and a decrease for most residents' electric bills by an average of $60 a year.
The plan, which was approved by the General Assembly prior to the constitutional adjournment date of May 5, includes $170 million in spending cuts across a host of state agencies and a reduction of $300 million from a previous borrowing plan. There is also hundreds of millions of dollars in savings from a shorter term and lower interest rate on the issuance of $956 million in Economic Recovery Bonds (ERBs).
"Our budget agreement is one of the most important pieces of legislation that we adopt during our legislative session. I am pleased to see that we were able to get the work done prior to the end our regular session, and that we are moving our state forward," Candelaria said.
The ERBs have an eight year term at a low interest rate of 3% and will be paid off using a small portion (one third) of two current charges on electric bills. As part of the budget, customers will see one of the charges reduced by over 60%. The net result for most electric customers will be a savings of about $5 per month. As the economy continues to recover and revenues grow, the ERBs can be paid off earlier.
In addition, as an alternative to entering a much more expensive nursing home setting, seniors will see up to a $300 per month cost reduction for certain home care services that will saves taxpayers millions of dollars over the long term. AARP has endorsed the home care program.
Juan Candelaria represents New Haven's 95th Assembly District. He is Deputy Majority Whip, and vice chair of the Higher Education and Employment Advancement Committee. He is also a member of the Appropriations and Regulations Review Committees.