Reps. Staneski & Ferraro, Republicans Unveil State Budget Fix

From CT House Republicans: State Rep. Pam Staneski (R-119) and Charles Ferraro (R-117) joined their Republican colleagues in the House and Senate to offer an alternative budget proposal that fully eliminates the $321.5 million deficit and restores funding for core services.

The proposal aims to eliminate Connecticut’s $321.5 million budget deficit without raising taxes while maintaining funding for transportation, Education Cost Sharing grants, core social services, and tax breaks for seniors, retirees, and working families. More dollars are also dedicated to repaying the state’s unfunded liabilities, including the State Employees’ Retirement Fund, the Teachers’ Retirement Fund, and the Teachers’ Healthcare Fund.

The representatives will continue to advocate for further structural changes to state government and reduce funds that had been allocated to bailing out the city of Hartford.

The Republican proposal fully balances the fiscal year 2019 budget and erases the projected $321.5 million deficit. The plan would direct any revenue that exceeds the defined volatility cap toward the following three areas in equal thirds: (1) the state employee retirement fund, (2) the teacher’s retirement fund (with $8 million of that earmarked for the retired teachers health fund), and finally, (3) the rainy day fund. The proposal fully funds the Special Transportation Fund, restores funding for the Medicare Savings Program, and avoids the governor’s proposed cuts to education funding and municipal aid.

During a meeting of the Appropriations committee, in which Rep. Staneski is a member, The Democrat majority refused to support the Republican plan but instead voted for their own spending plan which ‘DID NOT’ address our unfunded liability and included $213 million more in state spending than the legislature had agreed to in the bipartisan budget passed in November 2017.

“What we need to understand is that continuing to not address our unfunded pension liabilities has a ripple effect on the state’s economy. Our budget proposal works to tackle the long-term debt problem head on,” Rep. Staneski said. “Rather than increasing state spending, our plan would put any surplus revenue towards those liabilities and the rainy day fund. The budget balances in a way that is practical, sustainable, and predictable. Connecticut has a long road to recovery, and this budget reflects that reality, but it also gives us the structure we need to achieve that goal.”

"Our budget plan is balanced and a pro-taxpayer approach that will continue our efforts to reform state government," said Rep. Ferraro. "We need to prioritize spending, reshape state government, and help those that need it the most. The budget we presented does just that and will create a predictable economic environment that residents and businesses can trust."

Republican Budget Highlights

Overview:

• Balances the Fiscal Year 2019 Budget in full.
• Balances the Special Transportation Fund, resulting in surpluses in each of the next 5 years. Implements Prioritize Progress, a long term transportation funding plan. Transit projects can move forward immediately.
• Restores funding for core government services, municipalities and education.
• Rejects governor’s drastic tax increases.
• Maintains tax breaks for seniors, retirees and working families. Maintains new retiree tax breaks contained in bipartisan budget for pension & social security income. Rejects governor’s proposal to eliminate $200 property tax credit which supports elderly and working families.
• Reduces the unfunded liabilities of the state including in the State Employees’ Retirement Fund, the Teacher’s Retirement Fund, and Retired Teacher’s Health Fund. Dedicates a minimum of $400 million to $600 million or higher to these unfunded liabilities.
• Shifts services to nonprofit providers without violating SEBAC as recommended by state agencies.

Funds the following programs:

• Restores funding for the Medicare Savings Program for those up to 175% of poverty, providing coverage to 158,099 people.
• Restores funding the governor proposed cutting to municipalities and education grants.
• Increases Municipal Aid $63 million more than the governor. Fully funds the Education Cost Sharing formula at FY 2019 enacted levels which is $85.6 million more than the current year. This rejects the governor’s proposals to reduce funding next year and carry forward education holdbacks. Does not zero out funding for any town as Democrat budget does.
• Fully funds Renters Rebate program, protecting 48,000 people. No longer shifts the expense onto municipalities.
• Restores funding for Elderly Nutrition Program, providing $2 million and rejecting the governor’s proposed cut to this vital service. Also makes this a separate line item to better protect this funding in the future.
• Preserves grants for substance abuse treatment and mental health care.
• Increases funding for retired teachers’ health care.
• Protects funding for fire training schools and eliminates governor’s cut.
• Restores funding for School Based Health Clinics.
• Protects Roberta Willis Scholarship for all current student recipients.
• Restores funding for Connecticard Program.
• Restores funding for the Hispanic Programs in DSS providing funding to nonprofits.
• Increases funding for emergency placements and employment and day services for those with intellectual and developmental disabilities.
• Includes new funding for regional workforce development boards.
• Provides funding for the Critical Infrastructure Protection Unit, responsible for approving school security plans.
• Provides funding for the Special Licensing and Firearms Unit to ensure valid sales are entered into our database in a timely basis.
• Provides funding for Puerto Rico evacuees.
• Maintains money for STRIVE, rejecting the governor’s proposal to eliminate this funding. This program helps people coming out of prison get back into the workforce.
• Restores $2 million to fully staff the Connecticut state veterans hospital’s critical care unit.
• Continues tourism and cultural programs funding.
• Does not implement any cuts to Care 4 Kids.
• Continues enhanced reimbursement rate for primary care providers.
• Increases court support staff by $2 million.

Photo courtesy of CT House Republicans