As many people are aware, the State of Connecticut has been struggling with a budget deficit of over three billion dollars for over two years. The global economic meltdown reduced state revenues dramatically and the need for increased services due to high unemployment and increased need left the state in a very fragile position. Governor Malloy was elected in November and had a short time to compose a budget that addressed the need to balance a budget, move off a reliance on bonding, and implement generally accepted accounting principles to ensure accuracy in the state budget.
Last week, the legislature approved a state budget for the next two years based upon Governor Malloy’s “shared sacrifice” proposal that balances state finances with spending cuts of $1.75 billion and revenues of $1.5 billion. In addition, the budget consolidated state agencies, reduced redundancies, and maintained important municipal aid to communities like the ones I represent.
In 2010 I voted against the state budget, mainly because it depended on too much borrowing, hidden fees, and one-time revenues which I believed would only exacerbate the budget crisis. This year, however, I made the tough decision to support the revised budget as the legislature was able to remove many provisions from the Governor’s original proposal that I felt unfairly hit the middle class.
Earlier this year I asked residents for their input through my survey regarding the state budget, their priorities, and cuts they would like to see made. From there, I was able to set priorities based on the great response I received. I focused on reducing the Governor’s overall tax increase significantly, eliminate the proposed increase in the gas tax, and maintain aid for our schools.
In addition, we restored $300 of the property tax credit that the Governor proposed eliminating, protected the back-to-school sales tax free week from the chopping block and insisted on keeping sales tax exemptions for many common services such as hair cuts.
As our towns are voting on local budgets, one thing that they could count on was a partner in the state for aid. All in all, the towns of Ashford, Tolland, and Willington will receive an over $463,000 in new state aid over the course of the budget. This new aid stabilizes our local property taxes and guarantees that any increase locally is not due to a decrease in state aid.
This is a budget that does a better job of protecting the middle class, preserves the safety net for our seniors and most vulnerable citizens, and unlike the budgets in New York and New Jersey maintains critical funding for our cities and towns. Real cuts have been made, debt has been reduced, our pension obligations fully funded, and the “Rainy Day Fund” has been restored. All of these aspects create a fiscally sound budget that fulfills state’s current and future obligations.
Making tough decisions is what the residents of the state expect their leaders to do, and this was a clearly very tough one. In the end, the budget meets the needs of the residents, put the state on sound fiscal policy, and required a truly shared sacrifice.
We are beginning to turn a corner that will help put the fiscal crisis of recent years behind us and allow our state to move forward with the business of creating jobs and encouraging economic growth.
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