Rutigliano Votes NO on Questionable CT Midterm Budget

HARTFORD—Trumbull State Representatives Dave Rutigliano (R-Trumbull) opposed the Democratic state budget plan in Saturday’s late night House session, citing the budget’s highly questionable revenue estimates and dubious accounting practices.

The legislative majority along party lines adopted a $19 billion budget early Sunday that relies on about $200 million in fund sweeps and risky savings and revenues assumptions to stay in balance – including the last-minute discovery of $75 million in “miscellaneous” tax receipts.  This budget was widely criticized for employing a number of gimmicks and budgetary sleight of hand. The questionable accounting in the budget was exacerbated earlier in the week when consensus revenue estimates showed that an assumed $500 million surplus talked about since the beginning of the year by Gov. Malloy had dwindled to just over $40 million, after tax receipts came in far lower than had been projected earlier in the year.  Compounding the bad news, nonpartisan fiscal analysts are projecting a $1.33 billion deficit in the first state budget after the election, a gap of nearly 8 percent.

“The budget we were presented with was based on a phony surplus from the beginning, and has always been full of gimmicks,” Rep. Rutigliano said. “Now that the surplus has been exposed as a total farce, the Democrats came back with an even less realistic proposal, with imaginary revenues and more dishonest accounting. This budget is an irresponsible wish list of Democratic priorities that completely ignores the bleak reality of our fiscal situation in Connecticut.”

Rutigliano noted that the budget was declared balanced by the majority party, but relied on a number of gimmicks, such as:

• Counting $75 million in unspecified “miscellaneous” tax collections
• Expecting $143 million in budget lapses
• Ignoring $52 million in contractually obligated payments for retiree healthcare
• Delaying repayment of $196 million in economic recovery notes
• Raiding $18 million from the Special Transportation Fund
• Moving $65 million to accounts outside the general fund

Rutigliano, along with his fellow Republicans in the Legislature, presented an alternative balanced budget proposal earlier this month, and updated it on Thursday to reflect the drop in projected revenues which spends $78.8 million less than the Democratic budget.

The chief goal of the Republican budget plan was to undo the gimmicks and budgeting “techniques” that are present in the Democratic proposal. The Republican proposal included a number of spending cuts, along with a hard hiring freeze and travel ban for state workers. The plan also restored the Municipal Revenue Sharing Account and returned $18 million to the Special Transportation Fund.

The Republican alternative budget proposal was offered as an amendment to the budget during the debate Saturday night, but was defeated on a party line vote.