When this session began, the state’s fiscal health was in question and revenue projections sank as the economy continued to suffer under the stifling tax burden. Republicans have made one of our priorities this session to help get Connecticut’s fiscal house in order and afford residents some much needed tax relief.
Following the largest tax increase in history last year, we were assured by the Governor that we would end this fiscal year with a surplus. However, that surplus quickly evaporated as state spending has again gone up. Now residents are left wondering how the Governor will end the year in the black and avoid borrowing or raising taxes, as he has promised to do.
According to the non partisan Office of Fiscal Analysis, the state is currently facing a $284.6 million deficit. The deficit is caused by higher than expected tax refunds, additional Medicaid costs and lower than expected income tax receipts.
With only two months remaining in this fiscal year, there are limited options for ending in the black. Governor Malloy has assured the public several times that this budget would meet the state’s spending needs and would not result in mounting debt, however it is looking like borrowed funds are going to be needed to cover the state’s operating costs.
When the Governor proposed his own set of budget adjustments earlier this year, Republicans also unveiled an alternative budget which proposes a way to provide vital services and, unlike the Governor’s budget, would give tax relief to residents.
The alternative budget was voted down by Democratic lawmakers in the Appropriations Committee on a party line vote. Despite this setback, my colleagues and I will continue our efforts to promote this budget and its components, showing an alternative to tax-and-spend policies without compromising vital services or the safety net.
If you would like to speak with me about this or any issue facing in the legislature, feel free to contact me at any time by emailing Tim.LeGeyt@housegop.ct.gov or calling 800-842-1423.