April 17, 2014

Zupkus, Republicans Offer Alternative Budget Plan

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HARTFORD — State Rep. Lezlye Zupkus today joined Republican lawmakers in offering an alternative budget plan that accelerates tax relief, restores transportation funding, phases in a pension tax exemption, and eliminates gimmicks majority Democrats have increasingly relied upon to balance their budgets.

The plan from House and Senate Republicans rivals separate plans from Gov. Malloy and legislative Democrats. It would keep state spending below the Constitutional Spending Cap, a boundary the Democrats and governor exceeded last year and have proposed doing again in their current plans. The Republican proposal, according to the state’s non-partisan Office of Fiscal Analysis, is the only budget plan that doesn’t increase future deficits.

“Our state is suffering through a trend that has majority legislators pass budgets that balance on paper but collapse with the slightest bit of real world pressure,” Zupkus said. “Our plan dismantles the house of cards budgeting that drives the need for increased taxes, fees and borrowing, and instead provides stability—offering residents and job creators a clear and reliable approach that should make them feel confident about their futures here.”

Democrats and Gov. Malloy in the current budget and in the two proposals already under consideration resorted to using $677 million in gimmicks, including delaying payment on $196 million in Economic Recovery notes, raiding off-budget funds such as the Tobacco Health Trust and eliminating the Municipal Revenue account. They circumvented the spending cap by either not recognizing liabilities and actual spending, or charging line items to off-budget accounts. These gimmicks include:

Ignoring $51 million in retirees health care costs
Eliminating $18 million targeted for magnet schools.
Raided $18.4 million from Special Transportation Fund
Sweeping $96 million from the Municipal Revenue Sharing Account.

The Republican plan adds money to the state’s rainy day fund, would give Bethany ($7,700), Cheshire ($40,804), and Prospect ($13,428) more in state aid than Democrats proposed, halts Keno gambling before it gets started in Connecticut bars, and eliminates the paltry $55 rebate checks Gov. Malloy proposed to give to residents who paid much more than through the income, sales and gas tax increases that occurred on his watch.

Other key components of the Republican plan include:

$196 million to pay off Economic Recovery Notes in order to reduce long term debt
$133 million to accelerate the sales tax exemption on clothing and footwear under $50
Preserves new financial outlay for mental health initiatives
$100 million to shore the state employee pension funds.
A phased-in exemption of all pensions from the income tax, starting at 5 percent.
Restores $9 million to the retired teachers’ health care plan
A $1.5 million Vocational Education
Adds $4.4 million for Department of Developmental Services to ease client waiting lists