Budget Woes Continue to Dog Connecticut

From now until the end of legislative session in June, the Connecticut legislature is tasked with crafting a two year budget that will fix the impending $2.5 billion deficit, improve stubborn unemployment rates and put the state on track for long-term recovery and economic growth. Sadly, that sentence has become one that Connecticut residents are all too used to reading over the last few years. That’s because the same economic woes have dogged us for years and the response has been more of the same. This year the Governor proposed a budget with a 9% spending increase, extension of electricity and corporate surcharge taxes and record setting borrowing to pay for ongoing expenses. The Governor’s budget exceeds the constitutional spending cap so he merely proposed changing the rules so that the budget falls under it. Legislative Democrats recently countered with a budget proposal that spends even more than the Governor’s and maintains a dangerous level of borrowing. To the detriment of our private sector, the Democrats put a priority on the government by increasing spending on state programs, increasing the number of state employees and creating new government agencies.  No one should be fooled that both proposals do not contain hefty tax increases because those taxes have been replaced with hefty borrowing.  The borrowing will create a hole in the next budget biennium. Both of these proposals miss the mark; they continue poor financial policies that have delayed recovery in our state. With persistent deficits, high unemployment and a business community that feels like a target for government, we must reverse course.  That means going back to the negotiating table with state employees to change benefit plans, reduce the number of mid-level managers and eliminate longevity payments. It means getting serious about fraud prevention and recovery. It means eliminating the earned income tax credit where residents who pay no income tax get a tax refund anyway. We have to stop the cycle of aggressive borrowing.  Both the Democrat's and Governor's budget proposals delays by two years paying $400 million in debt service payments.  They both propose borrowing $750 million to replenish our ever eroding savings account, known as our common cash pool.  The state’s credit cards are tapped out. If we can’t afford current spending levels, it means we are spending too much, not borrowing too little. Bonding is meant for capital improvements and fixing our infrastructure, it should not be used for unnecessary projects, hiring state employees or to keep the lights on in government as is being proposed.  Meanwhile, those outside of government will continue to suffer. The devastating cuts to hospitals are continued threatening closures, a 16% increase in the gross receipts tax on gasoline is scheduled for this summer and the massive borrowing guarantees future tax increases to pay for current spending. Fixing a large budget deficit is difficult to do. Cuts are hard to stomach because everyone wants to maintain their piece of the pie; but, if we don’t reform government then the same root causes of our deficits will persist. More taxes, more spending and more borrowing are short-term band-aids that aren’t going to solve our problems. Until we accept that as fact, we will continue to face these budget scenarios year after year. Vincent Candelora is the Deputy House Republican Leader representing the 86^th District communities of Durham, Guilford, North Branford and Wallingford