Fiscal Discipline

With the April 15 tax filings in, the Office of Policy and Management revised last month’s surplus estimate downward 90% to just $15.7 million for FY08.

These revenue estimates underscore the need to act with the utmost caution and fiscal discipline as we meet over the next two weeks to negotiate the mid-term budget. In just one quarter, January to April, we have watched our surplus shrink by more than $240 million. If this trend continues, Connecticut will face a budget deficit in FY10 that could reach into the hundreds-of-millions of dollars. We need to look for efficiencies in spending and make smart decisions now to avoid that outcome.

It is imperative that the Democratic majority forgo its ambitious new spending proposals and all of its proposed tax increases, including the ill-conceived Delivery Services Tax. Connecticut residents are struggling with the rising costs of food, fuel, medicine and other necessities. A tax increase now would only further strain their lives and our economy.

Not the time for more taxes

Democratic leaders have, without apology or explanation, abandoned the promises they made to taxpayers and businesses just two short months ago and are now proposing significant tax increases. This is a striking reversal and one that could have a devastating effect on our economy.

In addition to a new “Delivery Services Tax” which would, for the first time, apply a 6% tax to the delivery charges of all goods transported in Connecticut including documents, products and groceries, a new Homestead Exemption will result in additional tax increases on Connecticut businesses by shifting the municipal tax burden to non-residential taxpayers.

Imposing new taxes on Connecticut businesses, especially at a time when a record number are closing their doors ,is terrible public policy. This legislature should be working with Connecticut businesses to help create and keep jobs in our state. Repealing the Business Entity Tax and expanding the Job Creation Tax Credit are two ways we can help.

Ethics Bill

Senate Republicans joined Governor Rell in calling for a nine-point ethics bill. These proposals will create a criminal penalty for public officials who fail to report a bribe, and give judges the power to revoke or reduce the pensions of corrupt public officials and state employees.

The Senate Republican Caucus stands ready to pass the nine-point proposal immediately, and we will continue to fight for additional ethics reforms including restrictions for state officials who lobby legislators, and the creation of a Standing Committee on Ethics.

We would prefer a bicameral standing committee to deal with ethical violations and acts of official misconduct, but short of reaching agreement across both legislative chambers, I again call on Senator Don Williams to join our caucus in establishing a Senate Standing Committee on Ethics.

A Senate Committee on Ethics can be created by a simple amendment to Senate rules and does not require the approval of either the House or Governor. According to the Office of Legislative Research, 41 state legislatures have designated committees to hear and investigate complaints alleging ethical or legislative rule violations committed by individual legislators.