From Chris Keating, Hartford Courant:
With the largest tax increase in Connecticut history kicking in, the state is projected to generate a surplus of more than $100 million in the current fiscal year–finally pushing the state into the black.
While the number might seem surprising after years of major budget problems, the surplus is attributable to the tax increases that started on July 1–as well as the state income tax hikes that are retroactive to January 1.
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*** Overtaxed only to overspend later, no? *** SOS ***
A governmental budget year that produces a surplus can be seen or labeled as an opportunity or permission to overspend on the part of the executive in power. However, if it follows years of increases in public debt, liabilities and/or responsibilities, an administration can also when a budget is submitted announce plans for what will be done with surplus funds, should they happen, and then follow through in reducing public debt and obligations.
In the case of the City of Bridgeport where the monthly operating budget reports at the end of September are already claiming surpluses in salary accounts that should be available nine months from now in the form of a surplus, is anyone clear what will be done with such a surplus? Where would such an announcement be made? Who would listen? How are representatives of the people or the public itself able to monitor progress towards surplus?
Finally, if your “budget” (just a plan for frugally spending the conservatively estimated income to meet all current obligations) was conceived and approved with over $4.5 Million of commitments for unfilled positions, why is the projection for only a $2.5 million surplus at year end? Who monitors the unspent money from certain accounts that gets spent annually and liberally in other ways out of public sight? How does undisciplined spending, out of public sight and appropriate oversight cause taxes to be higher than necessary, and wasted in terms of failing to fund ultimate City obligations understood by City administration??? Taxpayers, please take note. You have nothing to lose but more dollars. Time will tell.
New era thinking: the power to tax is the power to eliminate deficits.
Congratulations to Governor Malloy who’s just been reminded by reality he did the right thing. He has quickly put himself (and the state of Connecticut) in ideal position.
I listened to Malloy brag about CT being in better shape financially than most other states. The man is daft. His budget may be looking good, but mine has taken a big-time hit because of never before in history has a governor applied so many new taxes which bury the constituents.
Not surprised Local Eyes offers Malloy his congratulations.