April 28, 2017

Rutigliano, Trumbull Lawmakers Offer No Tax Budget, Providing Long-Term Economic Stability

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HARTFORD – Trumbull State Representatives David Rutigliano (R-123), Laura Devlin (R-134) and Ben McGorty (R-122) and their fellow House and Senate Republicans held a joint press conference to present a balanced budget proposal for the 2018 Fiscal Year that unlike their Democratic counterparts does not involve raising taxes and restores state education dollars (ECS) to Trumbull.

Currently Connecticut is facing a $3 billion dollar budget deficit and residents have seen two of the highest tax increases in state history over the past six years. In addition, the Republican proposal spends $313 million less than what the governor’s budget had proposed and $700 million less than the Democrats.

Rep. Rutigliano said, “After the Democrats and Gov. Malloy passed the two largest tax hikes in our state’s history, it turns out Connecticut is in worse fiscal shape than ever. It is time to give our taxpayers a break and live within our means. This budget accomplishes that goal.”

“Clearly the policies that have been pushed on our state are not working. We have run out of time and structural changes need to be made now. This is our chance to seize the moment and chart a new course for our state. Continuing to raise taxes would only exasperate our current fiscal situation as more people and businesses would choose to go elsewhere. Connecticut needs a reliable and predictable vision for our business community and for our residents – not the current piecemeal annual process which has forced many businesses to shutter and residents to leave for other low cost states,” said Rep. Devlin.

“This budget is a significant departure from the failed direction that the governor and Democrat majority have led us,” said Rep. McGorty. “Our budget does not raise taxes, and it doesn’t pass the burden of failed fiscal management on to cities and towns, or our hospitals across the state. It’s essential for us to finally restore the economic conditions and stability in this state that will make our state what it should be.”

The budget proposal brought forth by the House and Senate Republicans does not include shifting 1/3 of teachers pensions back onto the municipalities, cancels bonding $250 million for improvements to the XL Center, requires $700 million in union concessions, maintains tax exempt status for hospitals, consolidates state agencies, phases out the income tax on pensions and annuity income, and exempts social security from the income tax for middle income seniors.

Transportation costs have also been prioritized by enacting a constitutional transportation lockbox for any and all improvements without the reinstitution of tolls for revenue. Increases to pistol permits and license fees brought forth by the governor will also not go into effect per this 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.