Malloy pins blame on lawmakers

Says legislature failing to make hard decisions on state budget

NEW HAVEN » Gov. Dannel P. Malloy explains the lack of a state budget with one word: placation. Monday was the 54th day Connecticut has gone without a budget as Democrats, Republicans and the governor remain at odds with one another on how to close a $1.6 billion deficit in the next fiscal year, left over after a $700 million savings from the unions,

“I think the legislature has become fond of giving everyone a veto to the budget. The unions have a veto. The local governments have a veto. The hospitals have a veto. Everybody else has a veto, which makes getting their job done very hard. We need to undo that,” Malloy said in an interview with the editorial board of the New Haven Register.

“In good times, no one has to make hard decisions, which is what ruled my predecessors and quite frankly prior legislators’ approaches to their job. But these aren’t good times,” Malloy said.

The governor said he was referring to both Democrats and Republicans.

Malloy on Friday told lawmakers that he plans to cut money to school districts by 38 percent in October if there is still no biennial budget in place.

He promised to end all Education Cost Sharing funds for 85 school districts and cut it to 54 districts based on those communities’ ability to pay and their dropping enrollment. PILOT (payments in lieu of taxes) would

also be held up; municipal revenue property tax relief grants would be cut to $40.6 million rather than the $303 million issued last fall.

Malloy has been running the state by executive order since July 1, in lieu of a budget. Friday’s announcement was an update of the original cuts he put into effect.

He is not cutting the expected ECS payments to the state’s 30 Alliance Districts where the majority of low-income students live. The governor also said he will release $40 million of the $100 million he had held up for the large number of nonprofits that provide social services for state residents.

Malloy said he is “discouraged” with the lack of progress by the legislature, but facing the drastic cuts set for October might get it to move on a bipartisan solution.

“With the impending absence of payments to not-for-profits, community providers, municipalities, maybe that will focus them. I hope,” he said. “I hope everyone wakes up at the same time.”

He said if they had adopted the “mini-budget” he proposed, he wouldn’t have had to take unilateral action. “I gave them a way out,” he said.

The governor said it makes no sense to continue to pay school districts the same amount if their student population is dropping.

“You don’t need to be a rocket scientist or for that matter a member of the legislature to tell that doesnt work,” he said.

Some examples of decreased enrollment include: Bethany, down 22.5 percent; Branford, a 8.23 percent drop; Cinton, 9.44 percent down; Madison, 12.64 percent decline; North Branford, 13.63 percent. The measure was from 2011 to 2016.

“There is this incongruity, an inconsistency to the arguments that Republicans make. By the way, I am just as hard on Democrats. They have made a lot of mistakes, as well. At least they are honest about theirs,” he said.

Senate Republican President Len Fasano, R-North Haven, on Monday asked Attorney General George Jespen to determine whether Malloy’s amended executive order is constitutional.

He argues that the reduction in the Excess Cost grant for special education and the Municipal Revenue Sharing program would need legislative action.

Malloy said if they have to litigate it, they will. He added, if a budget is in place, things will change.

The governor asked how the GOP can “decry cuts to municipalities when you have never supported a budget that sent any money to municapalities.” Malloy said the last time the Republicans voted on a budget was in 2007.

“It makes me so angry that he misrepresents the facts,” Fasano responded.

He conceded that 2007 was the last time they agreed with a budget plan as there was a surplus and no tax increase.

Fasano said his caucus will not vote on a “bad budget,” one that increases taxes and doesn’t deal with structural changes.

As far as taking into account the drop in student population in the state, the Republican leader said his caucus is the only one that made a proposal on how to fund education earlier in 2017.

He said Malloy’s cuts don’t adhere to any formula, but rather exacerbate the system that the courts have determined is unconstitutional.

“You can’t go cold turkey,” Fasano said of funding changes for the towns. He said their proposal would add more money for English language speakers and poverty and phase in the changes over 10 years. Fasano said it has been praised by the Connecticut Education Association and others.

Malloy said the sales tax increase proposed by the House Democrats from 6.35 percent to 6.99 percent won’t be enough to raise revenues to cover all that they have on the table. He estimated they would need to raise nearly $1 billion to do so. It is not something he would sign.

He said “they can’t lead with taxes,” but rather have to constrain spending. Malloy said he senses a “growing frustration” on the part of the public who want lawmakers to “accept reality.”

Malloy was asked whether, if the Democrats are the only ones voting for a tax increase, would that be a defining issue for the 2018 election?

The governor said he feels President Donald Trump will be the biggest factor, particularly the lack of criticism from Connecticut Republican leaders to Trump equating neo-Nazi and white supremicist protesters at Charlottsville, Virginia, with the counterprotesters.

“Not a single Republican leader in the state condemned that statement. I won’t forget that. Hopefully other people won’t forget that, either,” Malloy said.

Fasano said he was approached by a high ranking Democrat to issue a joint statement of unity against racism soon after the violent rally in Charlottsvile and he agreed. He said it ultimately was pulled by the Democrats “because of politics.”

He accused Malloy of being divisive. “He has divided the state. He lives off adversity,” Fasano said.

Fasano said he and Senate Democratic President Martin M. Looney, D-New Haven, were recognized by the Jewish Federation for passing the most comprehensive legislation protecting people against bigotry.

“People know where I stand. I feel comfortable in my skin,” he said.