Archive for July 2009

Cafero: In Recession, New Taxes or More Reductions?

More taxes not the answer we need in order to solve Connecticut’s budget crisis

State Rep. Tim LeGeyt (R-Avon/Canton) today voted against the largest proposed tax hike in state history, contending that another Democratic spending spree will only further cripple any economic recovery.

There is always more need than the state can afford to provide and we have to draw the line in this recession far short of the generous spending levels seen in prior surplus years. Several of the Democratic proposals will send Connecticut residents packing to states where the tax burden is leaner, with the unintended consequence that some tax increases will cause certain revenue streams to actually decline.

The Democratic plan relies on billions in “one shot’’ revenues such as the $1.4 billion Rainy Day Fund, $3 billion in federal stimulus money and “securitization’’ of $835 million in unspecified revenue streams. In two years, when the next biennial budget has to be approved, those “one shot” revenues will be gone and the state will have to raise taxes on more taxpayers to cover a projected $5 billion hole.

Other damaging aspects of the Democrat plan include:

• Hike the personal income tax on joint filers on those making $500K or more.
• 15% increase the tax on corporate profits to 8.625% 
• A 30% surcharge on estate and gift taxes.

Legislative Republicans have twice proposed No Tax increase budget that are balanced and spend nearly $1 billion less than the Democrats’ latest version. Rep. LeGeyt said he believes it is still possible to craft a budget with more cuts, and less of an increase in revenues.

More taxes, no government consolidation the wrong solution for Connecticut

State Rep. John Piscopo (R-Thomaston) today voted against the largest tax hike in state history, contending another huge Democratic spending spree will only hinder an economic recovery.

Taxpayers and families are struggling to make ends meet, and trimming their budgets to stay afloat. It is incumbent for the state government to do the same to bring relief to working families in our state. You simply can not convince me at this point that there is no room to streamline government to reduce spending. This budget sends us down the wrong path   

The Democratic plan relies on billions of “one shot’’ revenues such as the $1.4 billion Rainy Day Fund, $3 billion in federal stimulus money and “securitization’’ of $835 million in unspecified state assets that have to be replaced within two to three years. The state will have to raise taxes on more taxpayers, to cover a projected $5 billion hole.

Other “highlights” of the Democrat plan include:

• 15% increase in surcharge on corporate profits to 8.625% 
• Increase Preference Tax by $650K
• Reduces the Film Tax Credit in the out year, one of the only things our government has done in the past few years that actually brings $$$ into the state and creates jobs
• A 30% surcharge on estates and gifts (on TOP of the current death tax)
• Increases tax on tobacco products
• Hike the personal income tax on joint filers making $500K or more.
 
Legislative Republicans have twice proposed No Tax Increase budgets that are balanced and spend nearly $1 billion less than the Democrats’ latest version. Rep. Piscopo said he believes it is still possible to craft a budget with more cuts, and without raising taxes.  

State Rep. John Piscopo represents Burlington, Harwinton, Litchfield and Thomaston in the General Assembly.

Candelora Opposes Largest Tax Increase in Connecticut History

taxdome

State Representative Vincent Candelora (R-86) today stood in opposition to the largest proposed tax hike in state history which was unveiled today by legislative majority Democrats.  Candelora, who serves as Ranking Member of the legislature’s Finance Committee opposed the measure before the committee this afternoon in a meeting at the Legislative Office Building in Hartford. 

The Democratic proposal raises taxes by $1.85 billion including a huge increase in the income tax, and a hefty new tax on businesses that will likely lead to more job losses in the state. Read More→

There’s a Better Way: Klarides Against New Tax Increase Plan

HARTFORD — The legislature’s majority party today rolled out its latest spending plan, a proposal that would increase taxes by more than $1.8 billion. Rep. Themis Klarides, who represents Woodbridge, Orange and Derby, told fellow lawmakers about the negative impact tax increases have on businesses and, more important, job growth.

Rigby is No Fan of Latest Majority-Authored Budget Plan

HARTFORD — Connecticut residents need jobs, not more taxes. Rep. John Rigby during a Finance Committee meeting today voted against a proposal from the legislature’s majority party that would impose more than $1.8 billion in new taxes at a time when people can least afford it. The balanced budget plan from Rigby and his House Republican colleagues, meanwhile, would spend nearly $1 billion less than the majority party’s latest offering. Read More→

Measure to prevent Spread of Rabies Okayed by Regulations Review Committee

A regulation proposed by the state Department of Agriculture that would help prevent people from being exposed to rabies from animals present or on display in areas accessible to the public has been approved by the state legislature’s Regulations Review Committee. Read More→

Massive Tax Increases Not the Way to Help Connecticut

HARTFORD — Connecticut residents need jobs, not more taxes. Rep. Penny Bacchiochi is no fan of the latest budget plan offered today by the legislature’s majority party, a proposal that that would impose more than $1.8 billion in new taxes at a time when people can least afford it. The balanced budget plan from Bacchiochi and her House Republican colleagues, meanwhile, would spend nearly $1 billion less than the majority party’s latest offering. The budget plan from the legislature’s majority also includes a 15 percent surcharge on all business profits, a 75-cent increase on cigarettes and a 30 percent surcharge on estates. What’s more, their plan relies on billions of one-shot revenues such as the $1.4 billion Rainy Day Fund, $3 billion in federal stimulus money as well as securitization $835 million in unspecified state assets that have to be replaced within two to three years. Even worse, it would continue an infamous pattern of legislative policy that’s made life difficult for businesses in Connecticut. More taxes on businesses, for one, could further harm job growth in the state — job growth that would help reverse this economic downturn.

Hungry for a state budget

 from the fairfield Sun Newspaper

Hungry for a State budget

 
 

 

Written by Bill Bittar

 
 

 

Thursday, 23 July 2009 15:07

 

 

State Representatives Tony Hwang (R-

134th) and T.R. Rowe (R-123rd) oppose

any tax increases without ‘a concerted

effort to make dramatic spending cuts.’

Bacon sizzled on the griddle in the

kitchen of a local eatery one morning, as

cooks busily whipped up scrambled eggs,

dipped bread in egg yolks to make

French toast and poured batter for pancakes.

Meanwhile, two state legislators sitting in a nearby booth told reporters

stories of government gridlock as potent as the Shelton restaurant’s arteryclogging

menu.

Since Gov. M. Jodi Rell’s initial two-year budget recommendation in

February, proposals and counter proposals have been rejected through the

winter and the spring. Connecticut entered the new fiscal year on July 1 with

an empty plate.

Both sides in a sharp partisan divide blame their counterparts in the

opposition party for the lack of progress.

If Connecticut has no budget by August, Rell will have to give an executive

order to decide on funding for the month. She already had to do so for July.

State Representatives Tony Hwang (R-134th) and T.R. Rowe (R-123rd) say

they want to see a greater commitment among Democrats to cut the fat in a

projected $8.5 billion budget deficit legislators will have to close over the

next two years.

“Fundamentally, we will not consider any tax increases unless there has

been a concerted effort to make dramatic spending cuts,” Hwang said over

breakfast with Rowe and two newspaper reporters.

 
 

 

http://www.acorn-online.com

 
 

 

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In a telephone interview Thursday, Senate minority leader John McKinney

(R-28th), said a temporary “media blackout” is in effect, in which Rell and

party leaders have agreed not to negotiate in the press.

“We don’t have a deal yet,” McKinney said. “We’re still apart on the

numbers, and we’re going to continue to work until we can get a deal.”

Hwang and Rowe believe there needs to be more of a willingness to

compromise among Democrats, who hold the majority in the state

Legislature.

 
 

 

Sun block

 

 

State legislators Thomas Drew (D-132) and Kim Fawcett (D-133) say a

serious conversation about specific programs and cuts has yet to take place.

A bright sun beat down on Democratic state Representatives Thomas Drew

and Kim Fawcetts’ table on the brick patio outside Starbucks on Fairfield’s

Post Road late Friday morning. The legislators shared their views on the

Hartford deadlock over a round of cold drinks.

“I don’t support the process that’s going on right now,” Drew said. “It’s more

partisan and ideological. Kim and I are being more moderate. The leadership

on all sides is not talking about practical solutions to practical problems.”

“My priority is to find the cuts and efficiencies first, and we won’t support a

package until that work is done,” Fawcett said.

Drew (D-132nd) and Fawcett (D-133rd) formed a group of Fairfield County

Democrats in an effort to force conversations about serious issues to take

place before any budget deal is struck.

The group, made up of about four senators and 15 representatives, makes

up a sizable voting block, according to Fawcett.

“Our voice is going to be the moderate voice that makes an impact because

they can’t pass a budget without this block,” she said.

This group has been holding conference calls and meetings over the past

eight weeks since the last legislative session closed.

 
 

 

http://www.acorn-online.com

 
 

 

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An economy in crisis

 

 

Governors and lawmakers are waging nasty battles in places like Oregon,

Arizona and Mississippi as states try to balance budgets at a time of plunging

revenues.

Connecticut is one of three states that have yet to adopt a budget.

“This is the worst economic crisis of my lifetime,” McKinney said. “We are

dealing with the ramifications of that crisis. There are no good solutions. We

have to concentrate on the best long term, rather than short term

solutions.”

Beyond the estimated $8.5 billion deficit the next budget must address,

McKinney believes deficits will run between $6 billion to $8 billion over the

two years that follow.

“Some of the revenue we’re using now, a billion-and-a-half from the federal

stimulus package and another $1.5 billion rainy day fund, that’s $3 billion

that won’t be there two years from now,” McKinney said.

 
 

 

Hitting the reset button

 

 

Hwang and Rowe propose rolling back spending to 2007 state budget levels,

a move they say would close the deficit.

The GOP legislators plan to do this, in part, by making deeper spending cuts

and privatizing some programs, with successful non-profits such as the

Kennedy Center filling in the void.

Hwang says there has been resistance among state social services officials,

who charge that legislators who support privatization do not understand the

work they do. He said he offered to spend a day at these departments and

talk with employees to see how they operate, but had no takers.

Private citizens, many of whom have either lost or fear losing their jobs,

have cut back on groceries, eating out and travel. Just as families are

cutting back on household budgets, Hwang believes government should do

the same.

 
 

 

http://www.acorn-online.com

 
 

 

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Fairfield’s Democratic representatives oppose going back to 2007 spending

levels.

“That’s very irresponsible to do that kind of across the board cut,” Fawcett

said. “That’s a $3 million cut in education funding for the town of Fairfield.”

She estimated that cities like Bridgeport and Stamford would stand to lose

$10 million in state education money.

Further, Fawcett says the cuts might lead to losses in federal funding.

Mandates for some federal dollars call for education spending to remain

level, she said. Matching funds are paid for some other programs, such as

road maintenance, and this money, too, would be reduced.

But Hwang said that no one would support cuts that lead to losses in federal

revenue.

“There are no distinctions being made to budget items that have no value,”

Drew said. “There are gross, broad generalizations.”

“We cannot afford to put an additional tax burden on the state,” Hwang said.

“They want to criticize, but what is their solution? Give me specifics.”

 
 

 

What to cut?

 

 

Of the state’s $17 billion budget, Fawcett said that $10 billion could not be

cut because it is for debt obligations, retirement contributions, mandated

education spending and Medicare and Medicaid costs.

This leaves $7 billion with the need to make $4 billion in cuts a year to close

an estimated $8 billion deficit, she said.

Fawcett says cuts might include aid to towns that helps keep property taxes

lower, closing prisons while simultaneously laying off state troopers, cutting

after school programs and culture, tourism and recreation services people

count on.

“If you run the numbers, taxes and fees are forced up if we’re determined to

keep the most impactful programs in place,” she said.

 
 

 

http://www.acorn-online.com

 
 

 

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“I believe we need to support services for the most vulnerable,” Hwang said.

“We need a balance of doing something, rather than raising taxes on people

in the most difficult times.”

 
 

 

Staycations

 

 

Until a budget is adopted, state lawmakers must opt for staycations this

summer to ensure they are within driving distance of the capital when a deal

is imminent.

Concerns are mounting as Fairfield’s delegation holds its collective breath for

the next proposal.

“I think most taxpayers in the state feel we’re paying for a lack of

accountable spending,” Hwang said. “Why can’t we live within our means?”

“I’m frustrated that we won’t find a balance that is fair,” Fawcett said of

taxing and spending.

Drew is thinking about the real life impacts, a story he says is not being told.

Drew hopes groups awaiting state funding will apply more pressure on

government leaders should it come to Rell having to give an executive order

to decide on funding for August.

“The real life analysis and conversation the public really, truly needs is not

happening,” Drew said. “The other parties have to be willing and ready to

participate. You can’t force them to do that.”

 

 

 

http://www.acorn-online.com

 
 

Energy Season Assistance

On August 3rd, the Access Community Action Agency will begin taking applications for the 2009-2010 heating season. August 3rd and 4th will be dedicated to completing applications for homebound individuals. An appointment to apply for assistance is necessary. Early intake for the Energy Program is available again this year in the state through the efforts of the CT Department of Social Services. Those who wish to apply for energy assistance in Windham and Tolland Counties should contact the local Access Community Action Agency office to schedule an appointment. Offices are located at 231 Broad Street, Danielson, by calling (860) 774-0418, or in the Willimantic area at 1315 Main Street, Suite 2, Willimantic, by calling (860) 450-7423. Residents of Tolland County may also contact their local social service providers for information and applications.

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