Area Lawmakers: Republican Budget Plan Doesn’t Cut Local Education Funding; Makes Structural Changes Without Tax Hikes
On Monday, April 26, State Reps. Jesse MacLachlan, Devin Carney and Sens. Art Linares and Paul Formica praised the alternative state budget put forth by legislative Republicans for its structural reforms, its support for local education funding and its lack of any tax or fee hikes.
House and Senate Republicans presented a comprehensive plan, vetted by the nonpartisan Office of Fiscal Analysis (OFA) titled Pathway to Sustainability that closes the $935.7 million 2017 budget deficit without raising taxes, no cuts to towns and cities or local education, without using the Rainy Day Fund and sets Connecticut on a five-year path toward fiscal stability.
“The Pathway to Sustainability prioritizes the key roles of government for years down the line by supporting local hospitals, preserving the safety net for our most vulnerable, and refunding Educational Cost Sharing to the towns of the 35th District previously cut by the Appropriations Committee and Governor’s Office. This budget does not balance our deficits on the backs of students and property taxpayers; it makes much needed structural changes, and offers our small towns a level of predictability they deserve from state government,” said Rep. MacLachlan.
Rep. Carney said, “Not only does this proposal tackle our state’s looming budget deficit, but it does so without impacting funding for education, unlike the budget passed by the legislature’s Appropriations Committee and the governor’s office, which completely zeroed out education funding grants (ECS) for towns in the 23rd District. This proposal includes fundamental changes to our budget process and even gives towns the ability to find additional savings by reducing unfunded mandates that are oftentimes so debilitating to small towns like ours.”
Sen. Linares said, “Our plan restores the local education cuts that were made by the governor and by majority Democrats in the Appropriations Committee. We feel strongly that the state budget should not be balanced on the backs of students. In addition, our plan does not raise taxes or fees while emphasizing long overdue structural budget changes. We feel our plan helps put our state on a sound, predictable, and stable budget path.”
Sen. Formica said, “This plan offers a positive path forward for Connecticut, without tax or fee hikes on residents or businesses. It restores funding for local education, emphasizes much-needed mandate relief for cities and towns, and makes long-term structural changes which will stabilize our finances in the future.”
OFA estimates that if the current budget practices continue, the state will rack up huge deficits over the next 5 years ranging from nearly $1 billion to over $3 billion annually.
The proposed Republican budget would restore funding to core social services Democrats have proposed cutting this year, while also making needed cuts and implementing new policies that generate long-term savings. This budget proposal is projected to produce annual surpluses, with a cumulative total of over $1 billion.
This includes the following:
- Protects funding for social services
- Restoration of support for hospitals and Medicaid reimbursements
- Restores education funding for towns and increases statutory grants to municipalities.
- Administrative reductions. To enable the state to protect funding for core services, this budget cuts specific, non-service accounts by 12% for a total savings of $157.5 million
- Legislative givebacks including legislative salary reductions and elimination of unsolicited mail
- Modifications to debt service and a cap on state bonding
- Funds transportation development with “Prioritize Progress” – a no tolls/no tax increases plan
- Implements long-term structural changes to the state budget including mandatory voting by the legislature on labor contracts, overtime accountability protocols, as well as caps on spending and bonding, just to name a few
- Prices out savings from changes to unionized state employee health and pension benefits, to offer an alternative to layoffs should unions come to the negotiation table
The Long-Term Five Year Plan does the following:
- Results in more than $1 billion in surplus by 2021
- Reduces state spending by $3 billion a year
- Creates a Long-Term Fiscal planning group
- Funds ECS at 2017 levels a $7.6 million increase from 2016
- Provides funds for distressed town and cities
- Relief from Minimum Budget Requirement that allows towns to reduce education funding equal to the education cuts
- Provides middle class tax relief by increasing the Property Tax Credit
- Enacts a workable Constitutional Spending cap and Lock Box
For more information visit: www.fiveyearbudget.com.