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.

Budget Adjustment Bill

I found my first state budget debate as a newly elected State Senator - and newly appointed member of the Appropriations Committee - to be quite an education.

As a businessman, I believe I was right to vote with the Republicans against the Democrats’ budget adjustment bill because we simply need more information. There are still several weeks left in the legislative session, and we have plenty of time to find out what we need to know before the full General Assembly has to vote on the budget adjustment bill for next year.

Certainly, if it turns out to make sound fiscal sense, I will be happy to vote in favor of a budget adjustment bill that calls for less spending than we expected to need and no new taxes for the next fiscal year. But, let’s take a closer look at the information we’re relying upon and see how much the state collects in taxes this spring before we make any final decisions.

I had hoped that the Democrats would support our Republican amendment to make some worthwhile changes to their budget adjustment proposal. Among other things, that amendment called for including my initiative to permit state audits of certain well-populated municipalities that heavily rely on state funding. Fortunately, my bill is on the Senate Calendar and we have plenty of time to vote on it before the end of the session. Still, I believe the taxpayers – who deserve to know that the state is spending their hard-earned money wisely – would have been well-served by including my initiative in the budget adjustment bill.

Rob Russo swearing-in ceremony

Appearance on CT Newsmakers

On Sunday I appeared on "Connecticut Newsmakers" on NBC-30 to discuss the economy, healthcare, and the mortgage crisis. I appeared with Democratic Senate President Pro Tem Don Williams, and the segment is 10 minutes long.

Tax Breaks For Healthy Living

We need to change the debate on healthcare in Connecticut. We need to begin to focus on reducing the escalating cost of healthcare—which will benefit the middle class who is squeezed by increasing premiums and those who are uninsured because healthcare insurance is so expensive. The best way to reduce cost is also the best way to save lives—detecting disease before it happens. We need to get more focus on prevention and early detection for the most deadly and costly diseases such as cancer, heart disease, and diabetes.

The Senate Republicans’ “Tax Breaks For Healthy Living” initiative a great start to transforming our approach to healthcare. This proposed legislation would allow individuals and families who meet preventative care guidelines established by the state Department of Public Health to deduct out of pocket medical expenses – including premiums, co-pays and deductibles – from their state income tax.

Qualifying for the tax break would be easy—going to the doctor for your physical, and getting all the preventative tests suitable for your age and gender (e.g., mammograms, prostate exams). Doctors would qualify families by ensuring that they had all the preventative care screenings recommended– and then sign a one-page certification form to be included when they file their state income taxes.

This proposal will mean hundreds of dollars of tax breaks for the average family in Connecticut. But more importantly, it will save lives and lower healthcare costs for everyone. Catching cancer and heart disease earlier is sure to improve survival rates (which should be the focus of any healthcare proposal). But catching these diseases early reduces treatment cost by 80-90%, which would save hundreds of thousands of dollars per patient. One study states that if we can catch just 25% of disease cases earlier, we can reduce healthcare costs by $2 billion in Connecticut.

If we could pass $2 billion in lower healthcare insurance costs to consumers, that is a win for every Connecticut family. For those of us with insurance, we would stop having healthcare take an increasing portion of our families’ budgets. For those of us without insurance, we would be able to better afford basic insurance such as Governor Rell’s Charter Oak Plan.

This tax deduction would be the first of its kind in the United States. Connecticut has the opportunity to take the lead in improving the health of our families and reducing cost in healthcare, and I hope this becomes part of the upcoming budget.