The Connecticut Legislature has passed a new two-year $40 billion budget that includes lots of new taxes and maintains education funding to communities. Key to the budget is Governor Dannel Malloy securing union concessions. From Malloy:
(HARTFORD, CT) – Governor Dannel P. Malloy released the following statement after the Connecticut House of Representatives passed the FY12/FY13 Biennium Budget.
“With the passage of this budget by the Democrats in the House of Representatives, coming on the heels of yesterday’s passage by the Senate, Connecticut has taken another important step toward much-needed fiscal stability. In particular, I want to thank Speaker Chris Donovan, Majority Leader Brendan Sharkey, Appropriations and Finance Co-Chairs Toni Walker and Patricia Widlitz, and the other 79 Democrats who had the courage to make this vote. As I said yesterday, I know it’s a tough vote – it’s also the right vote. This budget is balanced, honest, and contains none of the gimmicks that helped get us into this mess. It will provide the stability we need to foster much-needed job creation – which is everyone’s top goal.
“Now it’s up to my Administration to reach an agreement with our fellow state employees and to present it to the legislature for ratification. I remain hopeful that we’ll get there. If we don’t, I remain committed to presenting an alternative budget to the General Assembly in the next couple of weeks.
“Make no mistake: come July 1, Connecticut will have an honest, balanced budget in place. No smoke, no mirrors. A solid foundation for the future.”
I want to thank our delegation to Hartford for screwing us again. You could not make the tough cuts. You could not add a revenue stream from tolls on those entering the state. Instead you voted to tax the ass off us us retired and middle-income people. You have increased the amount of the gasoline tax (well done). We are still the state with the highest gasoline tax. Hey dummies, look at the prices. Today I paid $4.27 for a gallon of gasoline, can’t wait to see what your tax increase adds to it. I haven’t gone to the store yet what the hell I buy something on sale but pay tax on the pre-sale price.
WE are the only state that did not cut its work force. Great job.
tc,
Higher taxes will happen all over and hopefully, necessary budget cuts or cost adjustments will occur as well, or we do not get out of the messes we are in at each level of government.
One difference I detected in the State budget is the focus on union negotiations will be maintained by a timeline that was also part of the budget forcing a negotiating timetable in a certain number of days, and if progress in union negotiations does not bring results, then Malloy’s Plan B (whatever that is) is rolled out. Hey folks, remember how many years, little by little in annual budgets, we grew new programs, buildings, and capital obligations we had to have now and pay for later?
IT WILL TAKE TIME AND VIGILANCE TO REVERSE AND REPAIR THE DAMAGE!!!
What is plan B? Increased taxes, layoffs, cut off services? Does anybody realize what these increased penalties will do to prospective businesses? I will be a prophet and state the population of this State will decrease along with the revenues.
Charlie,
I don’t know fully what Plan A is as I have not read the fine print in the State legislation. Hope somebody has. I am responding as you are to the highlights we first hear.
What you indicate is people will want to get away from CT, or from Bridgeport, on another level. And you are right, getting away from a “financial tsunami” makes sense. But which State has been provident about its finances and future commitments? How much does that State depend on Federal funds or military bases, or ??? What industrial or service company base do they have? It it broad and able to support (taxwise) the number of people who are rushing there?
And as part of your exit strategy, how do you sell your house when all about you are on the market? If you are currently in business, does it lend itself to a new area where you need to build new relationships?
Finally most States are setting up their own future financing strategies. It will be some time before it becomes clear which ones are working and leaves new citizens in the best place.
B2,
The States that are gaining populations and jobs are in the South. This is partially due to the right to work characteristic, but also due to the absence of taxes. Why does our legislature not see this? People will do what they have to so as to survive.
Now that I have criticized I feel it my obligation to come up with a solution for the State. I have lived in Vegas for a few years and know if a city in the desert can thrive a state which in the population center of the country can flourish. If Connecticut were to pass legalized casino gaming, with cities opting out if they choose, this state would be facing a surplus. The casino issue in Bridgeport was so strong because people like Wynn and Trump knew one casino would net 1 billion dollars a year. I know this to be a fact having worked with Wynn.
Beacon you are right when you say taxes will happen all over. We really have not seen any budget cutting by the Malloy administration. I think he did reduce the number of bureaus by combining them but that’s not a real reduction. I have not seen one thing yet that shows there were cuts made in the state budget. Do you really think he will get $1 billion each of the next two years from state unions? I don’t think so.
Look, nobody likes tolls but don’t you think if tolls were instituted they would at least cover the DOT budget? WE are not looking that way. The poor and the middle class will suffer due to this budget and those dumb asses in Hartford will be slapping each other on the back for the great job they did.
$1 billion each of the next 2 years is totally unrealistic–making this budget a work of fiction. Let’s hope the next time around taxes are increased only on the wealthy–and tolls seem reasonable as well.