Shaban: Governor’s Budget Increases Spending & Borrowing Yet Again

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HARTFORD – State Representative John Shaban (R-135) expressed concern over Governor Malloy’s proposed $42 billion budget citing the proposed increases in spending, borrowing, taxation and burdens on municipalities and taxpayers.

“At a time when Connecticut is facing yet another multi-billion dollar deficit, Governor Malloy is proposing to increase spending by 9 percent, and to pay for it with more taxes and nearly $3.1 Billion in additional borrowing” Shaban said. “This spend, borrow and tax approach is stifling businesses and employers, and has kept our state in perpetual deficits and economic stagnation.”

In 2012, the Governor and majority party pushed through the current biennium budget (FY 12 and 13) that also increased spending, included the highest tax increases on record, and was coupled with a state worker union contract that many criticized as too costly. Poor tax receipts, however, landed the state back in deficit forcing an emergency budget mitigation session last December to plug the hole with gimmicks and cuts to services and hospitals. “It appears that the Governor wants to do more of the same. Continuing down the same path is unacceptable.”

The Governor’s proposed budget also (a) continues the electric generation tax that will result in more than $80 million being passed on to families and businesses; (b) continues the corporate profits surcharge tax that was supposed to sunset in 2012 and again in 2014, (c) pushes the payment of $300 million in “Economic Recovery Notes” from the next two years into the out years; (c) borrows to pay for day-to-day spending and certain “Pay-As-You-Go” transportation projects; and (d) avoids the Constitutional Spending Cap by redefining about $900 million in spending to put it outside the cap.

Shaban also noted that the proposed budget could have a negative impact on municipalities and local taxes by eliminating property taxes on most vehicles and reworking PILOT and revenue sharing payments. “Balancing the state’s books on the backs of our towns is simply wrong.”

“Our families, businesses and employers need stability” Shaban said, “not another ballooning state budget that supports a prospering public sector at the expense of our weakening private sector. I think all of us in Hartford have some serious work to do.”

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