Thursday, April 1, 2010

Connecticut’s Great Budget Saga Continues: Mounting Deficits Through 2014

Joe McGee of the Business Council of FairfieldCounty recently stated, "What the recession has done is unmask a structural imbalance in Connecticut’s fiscal policies that has been building for years." It has been clear to employers, taxpayers and a few elected officials for some time that our state has been heading for financial ruin due to the inaction by the General Assembly to confront reality. Our current budget deficit per person is nearly twice that of any other state, $1,700.00 (Nonprofit Quarterly, February 2010.) And, deficits continue to mount: $518 million by June 30, 2010, nearly $1 billion in 2011 and $4 billion in 2012, 2013 and 2014.


For a time, the legislative majority leadership’s reluctance to confront reality could have been attributed to their belief that the financial crisis was just a momentary blip from which we would quickly recover. Today, there is no excuse for their denial. We must stop spending money we do not have because our beleaguered taxpayers and the bedrock of our state, our remaining employers, cannot afford it. Connecticut already carries the heaviest per capita tax burden of $5,464.00 (Forbes, March 12, 2010) in the contiguous United States, along with the heaviest per capita state debt of $4,490.00 (Forbes, January 20, 2010.)

What has become apparent is a desire on the part of some in the legislature’s majority to protect state unions at the expense of private sector jobs. Their agenda calls for further increasing taxes on businesses, individual citizens and private sector bonuses. Yet longevity payments, which are state employee bonuses based on years worked rather than productivity, have been a longstanding practice. No wonder our state’s business climate is seen as unfriendly, to the extent that management for United Technologies recently voiced a desire to go "any place but Connecticut."

Recent events at the State Capitol highlight the need to make the difficult, responsible decisions necessary to end this fiscal crisis – regardless of how politically unpopular some of those decisions are. The latest chapter in the state budget impasse saga occurred last weekend when the Senate majority pushed through a so-called deficit mitigation plan calling for raising taxes by $180 million, but cutting spending by only $65 million. Keep in mind that the Senate passed this plan 21-15 shortly before 5:30 a.m. on Saturday after defeating plans offered by Governor Rell and the Senate Republicans, both of whom called for deeper spending cuts. Later in the day, the House decided against meeting in session to take up the Senate majority’s deficit mitigation plan. Why? It became clear that the House would not be able to marshal enough votes to override Governor Rell’s promise to veto the Senate majority’s woefully inadequate deficit mitigation plan.

Remember that there are enough members of the majority in both the Senate and the House to override any gubernatorial veto and pass a budget of their own.

So, where do we stand? So far, the only proposals taken seriously by the General Assembly’s majority leadership call for tax increases, instead of significant spending cuts. If we cannot work together to address the state’s existing $500 million deficit, how can we hope to pass a responsible, balanced budget for next year and head off the $11.4 billion deficit projected over the next three years? Democrats and Republicans must come together to resolve Connecticut’s ongoing, dangerous, fiscal crisis. At least half of the details included in our various plans are the same. Let’s agree to meet on common ground, and build from there.

Our state has lost 101,000 jobs between January of last year and January of this year. Unemployment is at 9.1 percent; the last time it was this high was 1976. State government is the largest employer in Connecticut, and our state workers are among the highest paid government employees in the nation. It should be noted that for every one dollar in private pay and benefits a private employee earned, a state or local government worker received one dollar and forty-five cents and that salaries were 30% and benefits 70% higher than private workers were. (Wall Street Journal, March 26, 2010.)

The bottom line is that Connecticut citizens are calling for immediate responsible action, but too many legislators are not listening. So let me repeat what you have been writing to me. You are saying you want an end to tax increases. You want the state to cut spending! You want the legislature to pass a deficit mitigation plan and a new state budget that does not further burden taxpayers and cost Connecticut more private sector jobs.

It is my fervent hope to report soon that Hartford has heard you, that common sense has returned to Connecticut and that taxpayers can look forward to better times ahead.

Wednesday, March 24, 2010

Connecticut Should Reject ObamaCare

An Open Letter to Attorney General Richard Blumenthal

Signed by all Republican State Senators

Dear Attorney General Blumenthal:

As the elected official charged with representing the interest of the people of Connecticut, it is now time for you to take action to preserve the Constitution and protect our state’s citizens and businesses. The illegal mandates passed by Congress in the form of the so-called Health Care Reform law must be challenged. Under our Constitution, those rights not explicitly provided to the federal government are reserved to the states. The Constitution does not empower the federal government to usurp the issue of making health care decisions for either the state or its citizens. The selection of healthcare providers and medical treatments, as well as the decision NOT to have certain treatments or coverage is the decision of the individual, protected by the Due Process rights of the Fifth Amendment to the Constitution. It is not now, nor has it ever been, in the purview of Congress to supersede those individual rights.

In addition, it has long been settled that the federal government has ceded to the states the responsibility of setting local healthcare standards of care, as well as regulatory authority over the medical and insurance industries. This inherent recognition of states' rights as pertaining to health care should remain, absent some Constitutional amendment granting oversight to Congress.

Finally, the attempted use of the Commerce Clause to justify this latest power grab by the federal government is unwarranted and improper. If the Commerce Clause, which springs from the authority to oversee economic activity between the states, was truly a proper source for an entire radical redesign of the health insurance industry, then it would not have been illegal to sell health insurance policies across state lines. In a free society, it has never been the duty of Congress to force the people of the United States to purchase a certain commercial product simply as a consequence of being alive. It is inherently illegal to mandate that free citizens must buy health care coverage or face sanctions.

We urge you to join the growing number of attorney generals who have already begun legal proceedings to stop this illegal action by Congress. Regardless of your personal beliefs or philosophies, you are bound by duty to protect and defend the people of this state, the small employers who will be penalized or put out of business by the mandates, the large insurance companies that call our state home and employ tens of thousands of our residents in an industry that will eventually be eliminated by government intrusion into our free markets, and the private citizens who will ultimately have to pay the $ 1.3 trillion price tag.

We would be happy to discuss this issue with you further at your convenience and we will assist your office in any way possible.

Sincerely,

Senator John McKinney, Senate Minority Leader
Senator Len Fasano, Senate Minority Leader Pro Tempore
Senator Andrew Roraback
Senator Tony Guglielmo
Senator John Kissel
Senator Sam Caligiuri
Senator Dan Debicella
Senator Rob Kane
Senator Toni Boucher
Senator Kevin Witkos
Senator Scott Frantz
Senator Michael McLachlan

Tuesday, March 9, 2010

Appearance on Fox 61's The Real Story

On Sunday, March 7, I appeared on The Real Story to discuss Senate Bill 153, An Act Providing Safe Harbor For Exploited Children.

The proposal aims to protect sexually exploited children by requiring the courts to assume that anyone under the age of 17 prosecuted for prostitution was coerced or enticed.


Monday, December 28, 2009

Increase Governor's Budget Authority

Bravo, Governor Rell!

Your veto of the Democratic majority's recent deficit mitigation plan sheds light on the lame excuses of the Democratic leaders in the Connecticut General Assembly.

Where else can a budget deficit estimated between $337 million and $550 million be addressed by cutting expenditures a mere $12 million? Only in the Connecticut legislature - led by Democrats - Senate President Donald Williams and House Speaker Chris Donovan.

During our previous deficit mitigation deliberations I proposed doubling the Governor's statutory rescission authority. Governor Rell has proven she can make tough decisions during this budget crisis while the Democratic leaders in the legislature "kick the can down the road."

I applaud Governor Rell's proposal that a Governor's budget rescission authority be increased incrementally. This will allow the Governor to make the tough decisions the Democratic leaders are refusing to address.

The taxpayers of Connecticut demand their government live within a budget just like our residents must do with their home budgets. Let's see how fast the Democrats move this time...

Legislature Continues to Repeat Same Mistakes

During our most recent special session, I compared the handling of the current fiscal crisis to the popular Bill Murray movie, Groundhog Day. In the movie, Murray's character relives the same day over, and over again until he finally learns his lesson.

Legislative Democrats have yet to learn their lesson and continue to offer the same empty solutions to deal with Connecticut's current fiscal crisis.

The legislature continues to repeat the mistake of not cutting spending when we have a deficit -- meaning at the end of the year our only choices are to borrow or raise taxes. Governor Rell and the legislative Republicans have offered moderate, specific cuts to get us out of this deficit, and the majority Democrats continue to refuse to get serious.

Wednesday, December 16, 2009

No Way To Run A Business, A Household, Or The State Of Connecticut

The General Assembly’s majority legislators continue to put their heads in the sand and pretend that somehow, some way, the state’s ongoing fiscal crisis will just go away. Rather than heed Governor M. Jodi Rell’s call for a special session to address our $466.5 million deficit, they chose to ignore the flood tide of red ink drowning our state.


It seems to me that the strategy at the Our state is drowning in red inkState Capitol is to keep state employment, wages, and benefits high and immune to any meaningful cuts, while turning a deaf ear to the massive layoffs, wage cuts, house foreclosures, and business closings that have become commonplace in the private sector. The legislature’s continued resistance to taking meaningful action simply prolongs the state’s fiscal problems and greatly lessens our chances for a robust recovery.


Governor Rell’s response to the Democrats’ lack of decision-making ability was right on target and reflected what so many Republican legislators have been predicting for the past year. Three months ago, I voted against the budget that is now in deficit because, rather than shrink state government, it called for spending even more than last year, raising taxes and fees, borrowing, draining the Rainy Day Fund, and using one-time revenues to cover operating expenses. As I anticipated, passing this budget put our towns and cities in a precarious situation and further threatened our already beleaguered state economy. It now looks like the majority will propose further raising taxes, and perhaps even more borrowing, to close the deficit.


As Governor Rell said in response to legislative leaders’ recent refusal to heed her call to hold a special deficit mitigation session: “The new taxes and fee increases contained in the current budget are not generating the levels of revenue they were predicted to bring in, so why would even higher taxes be the answer now? And, the payments on the debt we are incurring will add to the burden on future generations. If we borrow more, we jeopardize our credit rating, making it more expensive to pay for important projects in the future. In fact, the state Treasurer estimates a lowered bond rating could cost the state as much as $80 million a year.”



To underscore the Governor’s concerns, Moody’s and Fitch’s investor services have already revised their outlook on Connecticut’s general obligation bonds from stable to negative. This clearly reflects the legislative majority’s lack of political will to cut spending in the face of declining revenues – unlike nearly every other state legislature.



This is no way to run a business, household, or our state. The citizens of Connecticut do not deserve this, and neither do the municipal government leaders who have already set their budgets for the year. This recession has forced so many families, businesses, non-profit organizations, and others in Connecticut to do more with a lot less. Those in Hartford, who are insulated from the reality of what is happening, do not understand that in economic crises, many small business owners go without pay, put their families at risk and sacrifice, so that their businesses and employees can survive. They have the right to expect their state government to do the same. So far, they have been sorely disappointed.



Senator Toni Boucher (R-26) represents the communities of Bethel, New Canaan, Redding, Ridgefield, Weston, Westport and Wilton.