The Middletown Press (Middletown, CT)
Budget pitch raises sales tax
Malloy won’t sign spending plan crafted by House Democrats; Republicans pan it
HARTFORD » The governor’s response was lukewarm, at best, Wednesday morning after majority Democrats in the House of Representatives released a tentative budget plan that would increase the state’s 6.35 percent sales tax to 6.85 percent.
House leaders said raising the tax by a little over one-twelfth would be a good way to avoid some of the major cuts to school and municipal aid that Gov. Dannel P. Malloy ordered in July after the General Assembly failed to approve a new spending plan in time for the start of the fiscal year.
“This is an honest, balanced proposal that reflects the many and diverse priorities of the families and businesses of our state, and with continued good faith negotiations by all parties will help us cross the finish line in the next few weeks,” Speaker of the House Joe Aresimowicz, DBerlin, said in a statement indicating the proposal is likely not the final product. “No one thinks the governor’s executive order is an acceptable option, so
everyone bears the responsibility to get a sustainable budget in place, and this proposal provides a solid basis to move us forward.”
“The thing we have heard loud and clear from our caucus and our constituents is that one of Connecticut’s greatest assets is our public schools and the quality of education our students receive,” said House Majority Leader Matt Ritter, D-Hartford. “I look forward to further discussions with the governor and all four caucuses on this proposal.”
Malloy: Don’t lead with revenue
Under the Democratic proposal, Bridgeport would get more than $800,000 over last year’s level of school aid, but would see a drop of about $4.4 million in other municipal support.
Overall, Greenwich would lose about $600,000; Danbury would see a $1.9 million reduction; Norwalk would lose $3.4 million; Stamford’s aid would drop $4 million; New Haven would lose $8.7 million; Middletown would lose about $2 million; and Torrington would see a $419,000 drop.
The governor was underwhelmed.
“I have not seen a budget that I would sign, other than the one I proposed,” Malloy said, noting doubt that the Democratic plan would ever go into effect, but admitting it would further negotiations. Speaking with reporters after the official opening of the University of Connecticut’s Hartford Branch, Malloy criticized the additional $1.3 billion in revenue in the Democratic budget. Democratic leaders anticipate voting on the two-year, $39.7 billion budget during the week of Sept. 11, more than two months after the start of the fiscal biennium. Senate Democrats caucused the issue on Wednesday in the Capitol.
“My view is that we shouldn’t raise the sales tax to 6.85 percent,” Malloy said. “I think we should stop leading the discussion with revenue. I don’t know how they bring it into balance. They’re certainly not doing it with the $325 million that they say they would get from raising the sales tax. My fear is this is a billion dollars in additional revenue, and we have to analyze it.”
Counterpoints
Republicans also immediately criticized the plan.
“It took the House Democrats eight months to come up with another $1 billion tax hike as the only means to solve the state’s financial crisis,” said House Minority Leader Themis Klarides, R-Derby. “The Democrats want to continue down the path that has led us to the precipice of fiscal ruin.’’
Senate Republican Leader Len Fasano, R-North Haven, said he wanted to reserve his comments for closed-door negotiations.
“Republicans have been transparent about what our priorities are in each of the complete budget proposals we have offered and I hope that Democrats have taken these elements into consideration,” Fasano said in a statement. “I still believe strongly that we need to reach a budget that creates stability, protects core services, and protects residents from damaging tax increases, and hope to continue conversations to achieve this goal now that House Democrats have shared their ideas.”
The two GOP budget plans offered by House and Senate leaders would raise revenue by about $1.5 billion over the biennium.
Earlier in the morning, around the time about 1,000 people were gathered at the renovated Hartford Times newspaper building, the site of the new UConn campus, hundreds of social-service providers — on a state-ordered furlough day under Malloy’s stopgap executive order on continued spending — stressed the need for more funding for programs that help the disabled.
“If I wasn’t here, I would be with them,” Malloy said, stressing that he met with nonprofit providers and agrees that a new budget is needed.
Malloy questioned whether Democrats have enough support to get the budget through the House, where they have a 76-72 majority, and Senate, with an 18-18 tie and a potential tiebreaker in Lt. Gov. Nancy Wyman.
“I doubt very much that this budget will get through anywhere, but it may be the basis to have some discussions,” Malloy said. “That’s what I celebrate in this budget. There’s a lot of work yet to be done.”