February 18, 2011
GOVERNOR PROPOSED STATE BUDGET FOR 2011-2013
It’s real. It’s comprehensive. It’s bold. It’s tough. It’s honest – no gimmicks, no smoke and mirrors. How refreshing.
Governor Malloy’s speech to the General Assembly was the wrapping on his budget package. Simply put, he described his goals – jobs, preserving the safety net, protecting cities, living within our means – and how to get there – shared sacrifice. He is taking his leadership responsibility seriously. Now, I’m unwrapping the package and sorting through the contents.
We know that our new Governor inherited a deficit of $6.5 billion for the coming biennium, an amount equal to 20 percent of the entire two-year budget. He also faces long-term obligations of $72 billion for bonded debt and unfunded liabilities for pensions and retiree healthcare, as well as a mixed forecast for economic recovery.
The budget proposes closing the projected deficit with a combination of spending reductions and revenue increases. The Governor has proposed $1.8 billion in spending cuts, including $1 billion in concessions from state employee unions, and $1.5 billion in revenue increases – about a 54 percent to 46 percent ratio of cuts to taxes. State employees have always stepped up to the plate in past years and made significant contributions to balance budgets because we all know that the answer to unemployment is not more unemployment.
Some policy changes make me sad. A few years back, then State Senator David Cappiello and I proposed the sales tax-free week in August. I understand it’s on the chopping block. I too have to be grown up and come to terms with the severity and length of this economic crisis.
In my experience, recessions last less than a couple years. We’ve used the three legged stool of spending cuts, taxes, and borrowing to get through the short term, and then readjusted them again when the recession was over. That won’t work any more. Wall Street and big bank greed has permanently altered the state’s revenue stream. Connecticut is going to have to come up with new ways of dealing with this new reality. Dannel Malloy has done just that.
The City of Danbury fares well overall. Current state funding for Danbury’s public education (ECS), road construction and repairs (TAR), and capital improvements (LOCIP) will be fully funded. Funding will actually increase for adult education and school transportation. There will be some reductions to PILOT aid for state-owned property, colleges, hospitals, and the Pequot and Mohegan Fund payments.
As a former mayor, Governor Malloy has proposed new revenue streams for towns to reduce the overreliance on the property tax – something local mayors and first selectmen have long desired. His real estate conveyance tax, taxes on boats, aircraft, and revenue sharing of sales taxes and hotel taxes could bring Danbury an additional $2.6 million in 2011-12 and $3.45 million in 2012-13.
I am generally pleased with the direction of the Governor’s budget, which includes:
But more in-depth analysis needs to be completed, and most of all, you need to be heard. The Governor is embarking on a listening tour which will include a stop in Danbury on April 6. My constituents are also currently completing my annual survey and I look forward to their input. I’m especially interested in your answer to this question: What state services that you use, are you willing to forgo or see cut, to bring down spending?
We all have to sacrifice to get Connecticut back on track again. We all need to be a part of the discussions to make that happen.