April 28, 2017

Betts, Pavalock-D’Amato, Martin Support Republican ‘No Tax Increase’ Proposed Budget

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Lawmakers Stand Up for Taxpayers, Bristol Hospital

HARTFORD- State Representatives Whit Betts (R-78) and Cara Pavalock-D’Amato (R-77) along with State Senator Henri Martin (R-31) stood arm-in-arm with their House and Senate Republican colleagues and put forward a balanced, no tax increase budget which sets the Connecticut on a new fiscal course.

The proposed budget comes as Connecticut stands on the brink of fiscal disaster and faces a $3 billion budget deficit that seems to grow by the day. The budget provides a blueprint to move the state away from years of tax increases and unsustainable budget that have cost Connecticut businesses and residents. “In response to my constituents and all Connecticut taxpayers, the Republican budget we’ve proposed today meets their demand of no tax increases and cuts government spending,” said Rep. Betts. “As important, our budget strongly supports our community hospitals, including Bristol Hospital, which have been under constant attack by Gov. Malloy. This is a responsible plan which provides a roadmap to put Connecticut back on solid fiscal ground.”

“The Republican budget protects taxpayers in Bristol and across Connecticut by rejecting the governor’s budget, which included a $400 million proposal requiring towns and cities to fund the teacher’s pensions,” said Rep. Pavalock-D’Amato. “This proposal by the governor, if adopted, would have forced Bristol to significantly increase property taxes on Bristol taxpayers. Our proposed Republican plan is a fully vetted and balanced budget which maintains core services and eliminates wasteful spending.”

“While other states have recovered from the 2008 recession, Connecticut’s high taxes, onerous regulations, and anti-business policies are strangling efforts to restore jobs and improve the economy,” Sen. Martin said. “This budget starts the process of reviving the state and putting it back on the path toward fiscal health by making government smaller and more cost effective.”

Unlike the governor’s budget which raised taxes by $200 million and the legislative democrat plan which would raise taxes by over $400 million, the Republican plan DOES NOT raise taxes.

The Republican budget spends $700 million LESS than the Democrats’ budget and $313 million less than the governor’s budget.

Other Budget Highlights include:

Consolidations of state agencies
Eliminates funding for UConn branch of FastTrack bus service
Eliminates taxpayer funded campaigns
Mandatory Approval of labor contracts by the General Assembly
Requires $700 million in union concessions
Cancels bonding $250 million for the XL Center
Enact a constitutional Transportation Lockbox
Phases out the income tax on pensions and annuity income
Exempts social security from income tax for middle income seniors

According to the latest report by the Office of Fiscal Analysis, the state budget is projected to run a $1.7 billion in deficit in 2017-18, and $1.9 billion in the red in 2018-19, according to Governor Malloy, for a combined biennial shortfall of $3.6 billion.

If the April income tax estimates hold, the deficit forecast would rise to $2 billion in 2017-18 and $2.2 billion in 2018-19, which would represent a potential gap of 10 percent and 11 percent, respectively.

DOCUMENTATION

Revenue Comparison: Governor’s Proposal vs. Republican Plan – This document shows a comparison between the Governor’s proposed revenue policy changes and the changes in the Republican budget proposal.

Policy Comparison: Governor’s Proposal vs. Republican Plan – This document shows a comparison between the Governor’s proposed spending policy changes and the changes in the Republican budget proposal. There are other “Current Services” changes to programs that are not in this document. Current Services changes are technical, such as the fiscal impact of changes in caseload or updated estimates in spending related to certain programs.

ECS.Formula: This is a detailed description of the ECS formula proposed as part of the Republican budget.

Education Funding: This document shows a comparison between Current Year, Governor’s Recommended, and Republican budget ECS and Special Education funding for each town.

Total Municipal Aid: This document shows the overall impact of ALL municipal aid changes in the Republican budget, including education funding. It compares GOP budget amounts to the amounts for the Current Year, as well as the amounts proposed by Governor Malloy.

Special Transporation Fund & Prioritize Progress: This document shows the overall budget information for the Special Transportation Fund. It also has some details about the Prioritize Progress transportation infrastructure plan.

Creates Stability for Towns and Cities
The “Confident Connecticut” budget rejects a proposal to require municipalities to assume a portion of the costs associated with teachers’ retirement. This will save towns from over $400 million in new financial burdens in year one – a savings that multiplies significantly each year in the future. This budget eliminates the state’s Municipal Revenue Sharing Account program and instead reformulates municipal funding by establishing a new education funding formula and Urban Improvement Grant. Almost all municipalities fare significantly better than under the governor’s proposal. No towns receive less state funding in fiscal year 2018 than enacted in fiscal year 2017. The budget also contains municipal mandate relief to help towns manage their budgets and identify savings for local taxpayers.

Enhances Education Aid
This budget includes a fully revised Education Cost Sharing Formula that takes into account factors regarding CCJEF and Meskill court decisions, enrollment, poverty and wealth. In addition, this budget dedicates $33.6 million more to education in fiscal year 2018 and $136.6 million more in fiscal year 2019. Once fully implemented, the state will be spending $678.7 million more on education funding under this proposal. In 2018 all towns and cities will either be held harmless or gain more funding for education needs.

Protects Hospitals
This budget rejects a proposal to eliminate the tax exempt status for hospitals, and therefore protects hospitals from being subject to a new local tax. This budget preserves the small hospital pool to protect funding for community hospitals and does not increase the current hospital tax. It also reinstates hospital Payment in Lieu of Taxes to towns and cities.

Protects Core Services
Budgeting is about priorities. This budget prioritizes core social services for the most vulnerable as well as important health and public safety programs. In order to preserve the safety net of services for the disabled, poor, those with mental health needs, children, the elderly and those in poverty, this budget rejects proposed cuts to many direct services and restores funding for core functions of government. For example, this budget fully funds Meals on Wheels, Care4Kids, day services and employment opportunities for those with developmental disabilities, and mental health and substance abuse grants.

Prioritizes Transportation
This budget would enact the Republican “Prioritize Progress” transportation funding plan which dedicates $63 billion to transportation needs over 30 years without tolls or new taxes. In addition to the funding plan, this budget includes a plan to make the state’s Special Transportation Fund solvent in future years by dedicating transportation related revenue to the fund and weening the General Fund off of transportation related revenue. Currently, the fund is in danger of being in deficit by fiscal year 2020. This budget resolves that issue for future years.

Implements Structural Changes
In addition to addressing the deficit over the next two years, this budget includes changes to the structure of government that will roll out into the future to create significant savings for future generations. Recognizing that the state desperately needs to think about the current size and shape of state government, this budget recommends consolidating duplicative administrative functions and privatizing certain functions to best protect core services and enhance efficiencies. In addition, this budget contains an extensive list of policy changes to put the state on a better path in future years.