Rep. Lavielle, Republicans Introduce Alternative Budget

HARTFORD – State Representative Gail Lavielle (R-143) joined her fellow House and Senate Republicans today in introducing an alternative to the midterm budget adjustments proposed by Governor Malloy and legislative Democrats.

The alternative plan proposed by the Republicans, which would eliminate the accounting maneuvers used by the majority to create a surplus for the current fiscal year, respects the constitutional spending cap while restoring vital transportation funds, accelerating tax relief to state residents, and providing $26 million in additional aid to municipalities. It spends less than the majority's proposals and, according to the nonpartisan Office of Fiscal Analysis, will reduce the $2 billion budget deficit projected for 2016-2017.

"While the majority's budget adjustments will exacerbate the persistent deficits in the out years, the alternative we have presented is the only plan that would reduce spending in the current year, and reduce projected deficits in the out years," said Rep. Lavielle. "It is a return to honest budgeting, and a solid step toward returning Connecticut to a sound financial footing."

While cutting spending overall, the alternative budget plan offers increases in critical program funding, such as:

Restoring the funding raided from the Special Transportation FundFully funding the retired teachers' healthcare planMaintaining primary care provider reimbursement ratesAdding much needed staff to the Department of Social ServicesIncreasing funding for mental healthIncreasing funding for vocational education and apprenticeship programsRestoring the Elderly Renters' Rebate programA phased-in exemption of all pensions from the income tax, starting at 5 percent.

The plan would also eliminate Governor Malloy's plan to issue $55 refund checks to taxpayers, widely derided as an election year ploy, and would halt the rollout of the lottery game Keno, hastily inserted into the budget last year to plug a revenue gap.

The alternative budget also details what the Republicans would do with the excess revenue generated by a number of one-time tax collections and borrowing last year. Their proposals include reducing long-term liabilities by making debt payments skipped over the last two years and putting $100 million into the dramatically underfunded state employee pension fund. The plan would also accelerate restoring the sales tax exemptions on non-prescription drugs and clothing and footwear under $50, and would pay off the interest portion of a loan from the federal government that has been charged to business as a special tax.

"This is not the budget we would have developed from scratch, as we are midstream in the state's biennial budget cycle, and in even-numbered years the legislature's job is limited to making adjustments to the current budget," said Rep. Lavielle. "But it is honest and transparent, and that is definitely a step in the right direction.

"There are several major problems with the majority's budget adjustments that passed in the Appropriations Committee," continued Rep. Lavielle. "They make promises the state can't keep, because they use a one-time surplus to cover ongoing, recurrent expenses in the future. And this surplus would not exist without accounting maneuvers like borrowing, raiding special funds, and postponing debt payments, which increased the revenues on paper by more than $700 million for this budget cycle.

"Presenting the state's financials in this way is not honest or responsible," Rep. Lavielle continued. "Worse, the state is facing billion-dollar deficits in fiscal 2016 and beyond. Since the state is not generating the ongoing revenues to close those deficits, there is no way to pay for all the planned ongoing spending laid out in the majority's proposal without raising taxes in the next budget. Not being honest about this is just hoodwinking taxpayers."

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State Rep. Gail Lavielle represents Wilton, Norwalk, and Westport. She is Ranking Member of the General Assembly's Commerce Committee and a member of the Appropriations, Education, and Higher Education Committees.

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Submitted by Westport, CT

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