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State Rep. David Rutigliano Assails Governor Malloy’s Veto of Bi-partisan Budget

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Warns Constituents of Impending Funding Cuts as a Result of Governor’s Veto

HARTFORD – State Representative David Rutigliano (R-123) condemned the governor’s decision to veto the Bi-partisan state budget that passed the General Assembly on September 16th.

“With this veto, the governor has put this state into complete chaos,” said Rep. Rutigliano. “Trumbull taxpayers will be forced to feel the undue budget pain under the governor’s executive order. The Governor’s has repeatedly said he will punish well-run towns like Trumbull in favor of mismanaged cities on the brink of fiscal bankruptcy.  This budget was not perfect, however it did not contain the over 1.2 billion in new taxes proposed by the Democrats, I call on the General Assembly to override the governor’s veto.”

The governor’s veto means that a state budget will not be in effect by the October 1st  Education Cost Sharing (ECS) payment deadline leaving several towns, including Trumbull to face across the board cuts in municipal aid, education funding, and elimination of core government services.

To sign the petition demanding an override of the governor’s veto please click the link:http://www.cthousegop.com/veto_override/ 

State Rep. David Rutigliano with Myth vs. Facts on Bipartisan Budget

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Does the budget decimate UConn/UConn Health Center?

The Republican budget passed with bipartisan support by the legislature provides $1 billion in state aid to UConn and UConn Health Center over two years. This is a $200.1 million reduction to the anticipated $1.2 billion in state aid UConn would have received had the university not been touched by any budget cuts. While this is a cut of approximately 17%, this budget also for the first time allows for purchasing and contracting flexibility so the university can save money and enhance revenues in other ways that do not rely on taxpayer dollars.

There are policy changes that will allow in direct savings for UConn; like requiring professors to teach one additional class and eliminating the tuition waivers that allow UConn and UCHC employees and their dependents to attend UConn for free. Yes there are cuts to UConn, like every other agency. The difference between other state agencies and our flagship university to raise revenue or trim costs are substantial. UConn has alternative ways to support their organization through the school’s Foundation and fundraising or additional federal grants for research. While we have supported large investments over the years, we simply cannot afford it until our state is back on course. UConn still has an extremely healthy budget and now even greater flexibility to attain funding in ways that do not overly burden taxpayers. All of those avenues should be explored fully and pursued.

It’s also important to note that UConn is overstating it’s reductions by using the fiscal year 2017 original budget as the base, rather than what they actually received in 2017. It is only fair to compare the actual dollars taxpayers invested last year.

Does this budget change hospital taxes?

The budget proposed by Republicans and passed with a bipartisan vote in the legislature does not allow municipalities to tax local hospitals and preserves the small hospital pool. It also accepts the hospital settlement agreed to by the Connecticut Hospital Association and the governor’s office which includes tax changes our state hospitals lobbied for and meets all their requests to help them operate more efficiently and better meet the needs of their patients. This budget will also phase out the hospital tax over time and increases Medicaid rates which protect hospitals from changes on the federal level.

What does it do to the Earned Income Tax Credit (EITC)?

The Republican budget that garnered bipartisan support in the legislature would implement a graduated schedule for the Earned Income Tax Credit which provides 5% for single individuals, 10% for those with one child, 15% for those with two children, 25% for those with three or more children. By implementing a graduated scale we can make sure to preserve as much of the credit as possible for those who need the support most. Unfortunately facing a massive deficit of historic size we had to make the difficult decision to reduce this program in part to protect other core social services including SAGA. In addition, there are some who say a case could be made that it is not actually a tax cut, as over 80% of recipients never paid state income tax. Regardless on your opinions about the program–we prioritize children in the graduated scale model we worked hard to define.

Does this budget better serve the I/DD Community?

It is the only budget to fully fund day and employment services for individuals with Intellectual and Developmental Disabilities. It also does not carry forward reductions imposed by Governor Malloy to employment and day opportunities services for the intellectually disabled. In addition it adds funding to help individuals on the wait list access services.

Is this budget balanced?

Yes, OFA shows surpluses of $70 million surplus in 2018 and $40 million surplus in 2019.

How do we balance the budget?

– We rein in government as much as we can. We consolidate agencies and eliminate top heavy positions like Commissioners and their deputies.

– We make targeted spending cuts while simultaneously protecting core services.

– We implement 10% reductions to certain agency accounts.

– We implement overtime savings of 10 percent, a hiring freeze of non-24-hour employees, and cut the legislature’s budget.

– We include long-needed structural changes to achieve future savings such as a strong spending cap and bonding cap. The Democrat budget included a spending cap which recommends not counting our growing pension debt.

Why does OFA show a deficit in the out years?

All budgets proposed show deficit in the out years because the state’s financial problems cannot be resolved in one year. That being said, the Republican out year deficits are less than what was projected in the Democrats’ budget which includes many new tax policies like cell phones and non-prescription medicine (for example, in FY20 the Republican budget shows $1.2 billion deficit while the Democrat budget shows $1.4 billion deficit. In 2021, Republican budget shows $2 billion deficit while Democrat budget shows $2.1 billion deficit.) However, unlike the Democrat budget, the Republican budget also includes tax reductions to pension income, social security income, and inheritance/estate tax. We have heard our retirees and seniors loud and clear! They want to stay here and we want them here, too. These tax reductions contribute to the deficit on the surface because we are taking in less revenue, but they are likely to actually lower the deficit once implemented by sparking economic growth. In addition, the Republican budget contains a strict spending cap (as voted for nearly 25 years ago, but never enacted) and other long term structural changes to achieve future savings, restore confidence in our state, and therefore have a positive effect on the economy that cannot be calculated by OFA in the projections they show.

Does this budget change taxpayer funding for campaigns?

This budget eliminates taxpayer funding for political campaigns under the “Citizens Election Program” (CEP). The state cannot keep up with managing funds for this program that is a mere shadow of the original program meant to keep elections clean. In an extremely challenging budget year, this budget makes the decision to end taxpayer funding for political candidates – an expense which is expected to balloon to $50 million for the next election cycle with no additional money to be found in escheats which has previously funded the program. Democrats have actually underfunded this program in their own budget proposal by $10 million also putting the program in jeopardy because the state simply does not have the funds to support what this program has grown into.

Does this budget change teacher pension contributions?

This is not a tax on teachers. This budget does increase contributions teachers’ pay towards their own retirement from 6% to 8% at maximum, which remains below the national average of over 10% for teacher contributions. It was important in this budget to minimize the increase while also stabilizing this fund so the state can keep the promises it makes to our teachers who dedicate their lives to serving our state and its students. This is an increase that teachers pay into their own pensions; therefore it is all money that every single teacher gets back when they retire as it is part of their retirement savings. This is money that will be used to make the teachers’ pension plan more solvent and benefit teachers in the long run. In addition, this budget does not shift any teacher retirement costs onto towns and cities. Shifting any portion of this opens the door to more burdens being placed on municipalities and taxpayers. This is the state’s responsibility and we stood firm on not letting the state push off any amount of this obligation onto our cities and towns.

To make sure that the intentions behind the legislation adopted by the General Assembly are crystal clear, since partisan folks are distorting those intentions— the leadership of the Republican caucuses will put a request in writing immediately to the Teacher’s Retirement Board (TRB). While normally the TRB sets the state contribution amount every two years, this is too important to wait for the normal process. The money will be held in the General Fund UNTIL the TRB sets the amount as required.

Our intentions are crystal clear. This money will be deposited to the teacher’s pension fund, as was explained during the budget debate. Period.

Here is a link to the Teacher’s Retirement Systems latest evaluation: http://www.ct.gov/trb/lib/trb/forms…

THREE CHOICES FOR TEACHERS

  • Support the bipartisan budget that gradually increases the pension contributions for teachers 2%, while also keeping the income tax exemption of 50% promised in the last session. This budget also promises level funding for every school district.
  • Support the Democrats proposed budget that passes a significant portion of the teacher’s pension payments to local taxpayers and municipalities. This mandate will force towns to consider laying off teachers or programs and their education funding cuts many communities. It also fails to keep the promise to exempt 50% of their income tax, dropping it down to 25% retroactively to January 1st 2017.
  • Support the Governor’s Executive Order which slashed education funding by almost $600 million and passes the burden of the teacher’s pension fund onto taxpayers.

Rep. David Rutigliano Hails Bi-partisan Budget Vote

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Addresses Long-Term Fiscal Problems

HARTFORD – State Representative David Rutigliano (R-123) applauded passage of a bi-partisan, no-tax-increase budget that preserves the social safety net, restores funding to core social services and education, provides stability to local municipalities and rejects Governor Malloy’s plan to shift teacher pension costs onto local taxpayers.

In a stunning display of bipartisanship that hasn’t been seen in decades, the State Senate, with support from Democrat Senators Hartley, Doyle and Slossberg, tonight voted 21-15 to approve the Republican no-tax-increase budget before it was sent to the House. It passed the House with five House Democrats supporting the measure on a vote of 77 to 73.

“This bipartisan budget puts taxpayers and job creators first, not special interests. This budget was the best budget on the negotiation table for Trumbull families, as it restored education funding stripped by the governor,” said Rep. Rutigliano. “By prioritizing spending and making real structural changes we were able to fund critical services without tax increases. This is only the first step on what will be a long road to recovery, much damage has been done over years, and it will take time to fix.”

Highlights of the bi-partisan budget:

• No increase or expansion of the state’s sales tax
• No income tax increase
• No secondary home tax
• No cell phone tax
• No increase to the cigarette tax
• No new tax on nonprescription drugs
• No new restaurant sales tax
• No increase to the pistol permit fee
• No increase to the hotel tax
• No new fantasy sports tax
• Restores funding for the state’s property tax credit in its entirety to all families and individuals
• Eliminates Social Security income tax and phases out tax on pension income for middle class

For more detailed information on our proposal, please go to http://www.cthousegop.com/budget/.

Rutigliano, Trumbull Lawmakers Release Revised No-Tax-Increase Budget

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Hartford – Today State Representatives David Rutigliano (R-123), Laura Devlin (R-134) and Ben McGorty (R-122) joined together with their Senate Republican colleagues to release a revised two-year state budget proposal with no new taxes that would put a stop to the governor’s executive order, restore funding for education and core social services, and provide stability for towns and cities.

 The revised budget proposal offered by Senate and House Republicans includes no tax increases and rejects the governor’s proposal to shift teacher pension costs onto towns and cities that would further burden municipalities and lead to increased property taxes. The Republican budget proposal combines elements of the Senate and House Republicans’ multiple prior budget proposals released earlier this year, feedback from Democrat lawmakers and the governor, and factors in the legislature’s passage of the state employee labor concessions deal that is now law.

Rep. Rutigliano said, “If the majority party is serious about fixing our state’s budget problem they would embrace our new plan.  Our budget protects Trumbull’s fair share of state funding while avoiding yet another massive tax bill from the Democrats.” 

“Let’s be crystal clear, this Republican plan is the only state budget proposal which saves taxpayers from a third large tax hike in 6 years and also makes long-term structural changes to the way Connecticut runs its fiscal house,” said Rep. Devlin. “Taxpayers have had enough. People and businesses continue to flee Connecticut for more affordable, lower tax states. There is a better way to lead our state on a path to growth and this budget is a first step.” 

“I’m proud to join my Republican colleagues and once again propose and support a balanced, no-tax-increase budget that increases education funding and preserves the social safety net,” Rep. McGorty said. “Connecticut residents have been struggling for decades and they deserve relief, not increased taxes and further cuts to town and education aid.” 

No New Taxes

The revised Republican budget contains no new taxes. It does not increase or expand the sales tax, hospital tax or income tax. It also rejects the governor’s proposal to shift teacher pension costs onto municipalities as such a policy change would likely result in property tax increases. 

Reduces Taxes

The Republican budget enacts two policies that will reduce taxes for retirees by phasing in a tax exemption for Social Security and pension income for middle income families. In addition, the Republican budget also restores the entire $200 property tax credit for all qualifying families and individuals. Under Governor Malloy’s tenure this tax credit has been reduced from $500 and we believe that property owners deserve a break on their taxes.  

Increases Education Funding

The Republican budget rejects the governor’s devastating education cuts contained in his budget proposal and executive order entirely. It instead includes a fully revised Education Cost Sharing Formula that takes into account factors regarding recent court decisions, enrollment, poverty, wealth and number of English Language Learners, among other factors. This budget dedicates $33.6 million more to education in FY 2018 and $136.6 million more in FY 2019 and phases in a new formula over 10 years. It also establishes a council to analyze and make any necessary changes to the new formula within the next year if deemed necessary.  In 2018 all towns and cities’ base ECS grant will either be held harmless or gain more funding. 

Municipal Support and Mandate Relief

This budget provides predictable municipal aid so that towns and cities know what they can count on from the state. This plan does not ask towns and cities to pay for teacher retirement costs as the governor’s proposal does.  It also implements significant mandate relief for cities and towns to help municipalities achieve efficiencies and pass savings on to taxpayers.  

Funds Core Social Services

This revised budget maintains Republican proposals to restore funding for core social services and programs that benefit people most in need. It fully funds day and employment services for individuals with intellectual and developmental disabilities, reopens Care4Kids, protects funding for SAGA that supports disabled residents who are unable to work, funds school based health clinics and family resource centers, restores funding for mental health services among many other programs.  

Prioritizes Transportation

The Republican budget recognizes the importance of a safe, modern transportation system to public safety and economic growth throughout our state. Therefore, this budget prioritizes the state’s transportation needs and stabilizes funding without tolls or new taxes. It implements the Republican “Prioritize Progress” transportation funding plan and stabilizes the state’s Special Transportation Plan by dedicating transportation-related revenues to fund transportation needs and protects monies in the state’s Special Transportation Fund from being diverted for other uses.  

Supports Seniors

The Republican budget lowers taxes for retirees by immediately eliminating the tax on social security and phasing in an elimination of taxation of pension income for single filers with an AGI below $75,000 and joint filers below $100,000. It also helps seniors age in place by restoring funding for core programs such as Meals on Wheels, the personal needs allowance, non ADA dial a ride, and the CT Home Care Program.  

Employment and Day Opportunities for the Intellectually Disabled

Our budget fully funds employment and day opportunities for new high school graduates over the biennium, nor does the Republican Budget carry forward reductions imposed by Governor Malloy to employment and day opportunities services for the intellectually disabled.  

Funds State Parks & Tourism

Acknowledging the multiplier effect that tourism has on our economy, the Republican budget proposes to transfer 1.5% of the current hotel occupancy tax to a new Marketing, Culture and Tourism account. This is not a new tax as Democrats have proposed. Rather, it dedicates a portion of the current tax for its intended purpose to boost tourism funding. This budget also implements the Passports to Parks program that has garnered bipartisan support in the legislature.    

Reduces Size of Government

The Republican budget proposal includes overtime savings of 10 percent, a hiring freeze on non-24-hour non-union positions, and makes cuts to the legislature such as reducing the number of legislative committees. The budget also makes targeted spending cuts, 10 percent reductions to certain agency accounts, and rolls forward lapses made last year except for cuts to core services such as grants for mental health and substance abuse and youth service bureau funding.  

Includes Structural Changes

In addition to balancing the budget over the next two years, this budget includes policy changes that roll out into future years to achieve significant savings. Changes include items such as a spending cap, bonding cap, municipal mandate relief, and other policy changes for long term savings. The budget also implements pension reform beginning after the SEBAC deal ends in 2027 that will result in some immediate savings as calculated in an actuarial analysis.

Rutigliano, Trumbull Lawmakers Slam ‘Sweetheart’ Labor Deal

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HARTFORD – State Reps. David Rutigliano (R-123), Laura Devlin (R-134) and Ben McGorty (R-122) all voted against a proposed State Employee Bargaining Agent Coalition (SEBAC) new union contract deal negotiated in secret with the governor’s office which they viewed as insufficient and inadequate considering Connecticut’s $5.1 Billion state budget deficit.

The Trumbull House Republican lawmakers claim the Democratic leadership forced a vote on the SEBAC secret plan without any independent analysis, and then refused GOP efforts to vote on the Republican budget. The deal was considered so favorable for the state unions that they pushed for its quick passage and were not upset that it was a so-called “concession” package.

Currently, State employee salaries and benefits make up 40 percent of the state’s budget. The deal included extending of the contract another five years to 2027, a guaranteed four years of protection from layoffs and the raises in the last two years of the agreement.

The legislative non-partisan Office of Fiscal Analysis (OFA), which provides a fiscal analysis of all legislation in the General Assembly was not given enough time to provide a truly comprehensive evaluation of the concession plan, something that is routinely done on all previous contacts.

The equally divided State Senate (18-18) choose to wait for the OFA analysis and put off a vote on the labor deal while the Democratic Speaker of the House pushed for a vote before we could get the details of the deal.

“This is a sweet deal for labor union in Connecticut and a bad deal for the taxpayers of Trumbull and the rest of our state,” said Rep. Rutigliano. “I am disappointed the Democrats refused to allow a vote on our No Tax State Budget Plan, the residents are owed a vote, especially considering the majority party doesn’t have the votes for their budget tax hike. The Republican budget proposal would save hundreds of millions more than the deal negotiated by Governor Malloy and does not include the four-year no-layoff guarantee that this deal does. It also does not extend the overly generous pension and healthcare benefits package future retirees will receive.”

Rep. Devlin said, “The pension and healthcare concessions are not near parity with state union workers in surrounding states, let alone the private sector. The pension contributions double from 0-2% to 2-4% and health care deductibles for a “Cadillac plan” will continue to be zero. It is unconscionable that meal allowances and longevity pay, among other benefits, will still be permitted under this agreement while our state social service providers are being cut.”

“This agreement was rushed on us by Democratic leaders without a sufficient level of independent analysis of the costs and savings to taxpayers, while the state remains without a budget in place for nearly a full month now,” said Rep. McGorty.  “The House Republicans have had a balanced budget that preserves important services without tax hikes ready to go since April.  The agreement on union concessions is simply insufficient, and sets the stage for Democrats to push through another massive tax hike on state residents, and I deeply oppose that.”

Lawmakers reiterated that the state of Connecticut has been without a state budget for three weeks into the fiscal year but the unions have their wages, job protection and retirements guaranteed.