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    Monday, May 06, 2024

    Rell's latest budget-cut plan fails to assuage Democrats

    Gov. M. Jodi Rell can call the legislature into special session. But she might not be able to make the lawmakers vote.The Republican chief executive, who waited almost until the eve of Thanksgiving to unveil a package of $337 million in new proposed budget cuts, has once again found a skeptical audience among Democratic legislators, many of whom have expressed doubts about the degree to which Rell's proposals to close the shortfall in the current-year budget will fall on the sick, elderly and poor.

    The Republican chief executive, who waited almost until the eve of Thanksgiving to unveil a package of $337 million in new proposed budget cuts, has once again found a skeptical audience among Democratic legislators, many of whom have expressed doubts about the degree to which Rell's proposals to close the shortfall in the current-year budget will fall on the sick, elderly and poor.And they are also trying to find a way out of enacting the step that could be the most controversial at the local level: a proposed 3 percent cut in aid to cities to towns, which municipal leaders have long convinced both Rell and lawmakers to avoid, since it would likely lead to local service cuts, property tax increases, or both.

    And they are also trying to find a way out of enacting the step that could be the most controversial at the local level: a proposed 3 percent cut in aid to cities to towns, which municipal leaders have long convinced both Rell and lawmakers to avoid, since it would likely lead to local service cuts, property tax increases, or both."Eventually, we're going to have to make more cuts," Rep. Ernest Hewett, D-New London, said Tuesday. "The writing's on the wall."

    "Eventually, we're going to have to make more cuts," Rep. Ernest Hewett, D-New London, said Tuesday. "The writing's on the wall."But cutting grants to towns?

    But cutting grants to towns?"Absolutely, unequivocally, no," Hewett said. "I ain't voting for that."

    "Absolutely, unequivocally, no," Hewett said. "I ain't voting for that."While the current-year deficit is far smaller than the $8.5 billion gap Rell and legislators struggled to close throughout the past summer, familiar battle lines are being drawn in the wake of Rell's proposal, of which about $116 million would require legislative action.

    While the current-year deficit is far smaller than the $8.5 billion gap Rell and legislators struggled to close throughout the past summer, familiar battle lines are being drawn in the wake of Rell's proposal, of which about $116 million would require legislative action.Rell has called legislators into special session on Dec. 15, but Democrats, who control both the House and Senate, will hold hearings and closed-door caucuses before then to determine the extent of support for Rell's cuts.

    Rell has called legislators into special session on Dec. 15, but Democrats, who control both the House and Senate, will hold hearings and closed-door caucuses before then to determine the extent of support for Rell's cuts.After House Speaker Christopher Donovan, D-Meriden, indicated that some lawmakers are leery of the degree to which Rell would close the current-year deficit by cutting aid to towns and to the vulnerable - including services for AIDS patients, after-school programs for children and assistance for the elderly - a prominent Rell surrogate, Republican Chairman Chris Healy, came out firing Tuesday in a blog posting.

    After House Speaker Christopher Donovan, D-Meriden, indicated that some lawmakers are leery of the degree to which Rell would close the current-year deficit by cutting aid to towns and to the vulnerable - including services for AIDS patients, after-school programs for children and assistance for the elderly - a prominent Rell surrogate, Republican Chairman Chris Healy, came out firing Tuesday in a blog posting.Donovan "continues to play his electric guitar and not hear the voice of any reality-based lawmakers," Healy declared, predicting the Democrats will eventually propose tax increases rather than accede to Rell's cuts now.

    Donovan "continues to play his electric guitar and not hear the voice of any reality-based lawmakers," Healy declared, predicting the Democrats will eventually propose tax increases rather than accede to Rell's cuts now.In a phone interview on Tuesday, Donovan retorted with a reference to one aspect of the Democrats' budget compromise with Rell - a $37.6 billion, two-year package that the governor allowed to become law without her signature, to the consternation of many Republicans who had hoped she would hold firm and veto the bill. That compromise fixed the so-called "cliffs" in the implementation of the state's inheritance tax on the estates of the wealthy, but it also phased in a big tax cut for such estates: an increase in the threshold below which the tax is not assessed - from a net worth of $2 million to one of $3.5 million - and a cut in the marginal rate.

    In a phone interview on Tuesday, Donovan retorted with a reference to one aspect of the Democrats' budget compromise with Rell - a $37.6 billion, two-year package that the governor allowed to become law without her signature, to the consternation of many Republicans who had hoped she would hold firm and veto the bill. That compromise fixed the so-called "cliffs" in the implementation of the state's inheritance tax on the estates of the wealthy, but it also phased in a big tax cut for such estates: an increase in the threshold below which the tax is not assessed - from a net worth of $2 million to one of $3.5 million - and a cut in the marginal rate."Is it right to cut after-school for kids and instead give a tax break to estates worth over three-and-a-half million dollars?" Donovan said. "If Chris thinks it is, then say that. Don't just say 'cuts.' Say that. Say you will cut after-school programs and give a tax break to deceased millionaires."

    "Is it right to cut after-school for kids and instead give a tax break to estates worth over three-and-a-half million dollars?" Donovan said. "If Chris thinks it is, then say that. Don't just say 'cuts.' Say that. Say you will cut after-school programs and give a tax break to deceased millionaires."Meanwhile, some lawmakers are more concerned about the state's long-term fiscal challenges, especially the structural deficit that is growing in the 2012 and 2013 fiscal years, when the one-time infusions of funds used to balance recent budgets - including federal stimulus funds, the state's $1.4 billion budget reserve and more than $1 billion in borrowing used to close last year's shortfall - will not be available.

    Meanwhile, some lawmakers are more concerned about the state's long-term fiscal challenges, especially the structural deficit that is growing in the 2012 and 2013 fiscal years, when the one-time infusions of funds used to balance recent budgets - including federal stimulus funds, the state's $1.4 billion budget reserve and more than $1 billion in borrowing used to close last year's shortfall - will not be available."The vast majority of what she's proposing can be done through her authority," state Rep. Tom Reynolds, D-Ledyard, said, referring to Rell and her proposed reductions to the current-year budget. But the governor may be overstating the potential for savings by relaxing state mandates on municipalities, Reynolds said, in suggesting that the easing of those rules could "offset" the proposed $84 million cut in town aid.

    "The vast majority of what she's proposing can be done through her authority," state Rep. Tom Reynolds, D-Ledyard, said, referring to Rell and her proposed reductions to the current-year budget. But the governor may be overstating the potential for savings by relaxing state mandates on municipalities, Reynolds said, in suggesting that the easing of those rules could "offset" the proposed $84 million cut in town aid.Rell's press office announced appointments to a six-member commission of local leaders that will recommend where to reduce town aid and also where to reduce mandate requirements. The appointed leaders are Mayor Bill Finch of Bridgeport, Mayor Mark Boughton of Danbury, Mayor Melody Currey of East Hartford, Mayor Jason McCoy of Vernon, First Selectwoman Lisa Pellegrini of Somers and First Selectwoman Susan Bransfield of Portland.

    Rell's press office announced appointments to a six-member commission of local leaders that will recommend where to reduce town aid and also where to reduce mandate requirements. The appointed leaders are Mayor Bill Finch of Bridgeport, Mayor Mark Boughton of Danbury, Mayor Melody Currey of East Hartford, Mayor Jason McCoy of Vernon, First Selectwoman Lisa Pellegrini of Somers and First Selectwoman Susan Bransfield of Portland.Meanwhile, Reynolds warned, bigger problems lie ahead. His concern is the "eye-popping" projections like those presented last month to lawmakers by the Office of Policy and Management and the Office of Fiscal Analysis, some of which show a cumulative deficit of more than $8 billion over the three fiscal years after 2011 - the huge structural hole that lawmakers and Rell have so far refused to deal with as they struggle with the current crisis.

    Meanwhile, Reynolds warned, bigger problems lie ahead. His concern is the "eye-popping" projections like those presented last month to lawmakers by the Office of Policy and Management and the Office of Fiscal Analysis, some of which show a cumulative deficit of more than $8 billion over the three fiscal years after 2011 - the huge structural hole that lawmakers and Rell have so far refused to deal with as they struggle with the current crisis.Lawmakers must begin the hard process of reining in bonded indebtedness and initiate other long-view reforms, said Reynolds, who earlier this year presented his colleagues with a white paper urging wholesale restructuring of the state budget to avoid a meltdown. Its title: "Crisis - A Terrible Thing to Waste."

    Lawmakers must begin the hard process of reining in bonded indebtedness and initiate other long-view reforms, said Reynolds, who earlier this year presented his colleagues with a white paper urging wholesale restructuring of the state budget to avoid a meltdown. Its title: "Crisis - A Terrible Thing to Waste."But many of those reforms went nowhere, and at least in the short term, with a relatively small $460 million deficit on the agenda, Reynolds doesn't expect to see any immediate action.

    But many of those reforms went nowhere, and at least in the short term, with a relatively small $460 million deficit on the agenda, Reynolds doesn't expect to see any immediate action."If we didn't feel that a $9 billion deficit was an adequate crisis to inspire such reform, I don't know how a $467 million deficit is going to inspire such reform," he said drily. "I think all of us can conclude the crisis has been officially wasted."

    "If we didn't feel that a $9 billion deficit was an adequate crisis to inspire such reform, I don't know how a $467 million deficit is going to inspire such reform," he said drily. "I think all of us can conclude the crisis has been officially wasted."

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