Opinion: Fusco Says Budget 'Falls Woefully Short Of Changes'

Editor's Note: The following opinion piece was submitted by state Rep. John Fusco on Tuesday. Fusco (R) represents the 81st district of Southington.

The Governor said "let’s fix this damn budget." I was hoping that meant cuts in spending along with an effort to reduce fixed costs, unfortunately, again, it means increased taxes. The most serious condition our state economy suffers from is constant deficit. Large companies not only lack incentive to look at Connecticut, they’re forced to look away. Our fiscal record of over spending followed by increased taxes is a mire successful business owners are wise not to enter.

"The middle class has paid enough," the governor also said. It appears not enough just yet. Taxes will increase by $2 billion over the next two years on top of the $18 billion already levied on our residents. Sales tax expansion will include: digital downloads, prepared food, dry cleaning, interior design, online purchases, residential real estate, E-cigarettes, alcohol, plastic bags, ride share services, vehicle trade-ins, parking, etc., etc., etc. ... another $406 million picked from the pockets of our residents in 2021 and beyond.

In store for businesses are increased taxes projected to draw $50 million through increased fees for LLCs and LLPs and a reduction in the pass through entity tax credit, whether a portion of that income is invested back into the business or not. A floor tax on alcohol stock will require retailers to add up the wholesale costs paid for their inventory and pay 10 percent of that amount to the state.

For those following the debate on tolls or the Special Transformation Fund (STF), the full transfer of sales tax revenues, dedicated for the STF by the previous budget, will not be honored. That’s $58 million of STF funds diverted. The amendment to the constitution creating a lockbox for STFs, enacted through referendum by the voters of Connecticut, was a ruse.

And our hospitals, that have suffered through lies and broken promises, now seem resigned to defeat with regards to a fair deal.

For those concerned about the teacher’s pension fund, a scheme creating the Special Capitol Reserve Fund will add 17 years to the current amortization schedule and cost future generations an additional $2 to $5 billion. This financial deficit, pale in comparison to the unfunded pension liabilities of state union employees, was created by a projected return on investments of 8 percent. That projection was far higher than the actual percent realized, however no correction was ever made, and so now future generations will shoulder that financial burden.

On a positive note, municipal aid to Southington will not be reduced, and for our private providers, the Office of Policy and Management (OPM) may allocate funds to support the minimum wage increase, along with associated tax and benefit costs. The Social Security exemption, the phase out of taxes on pensions and the property tax credit remain for our seniors.

Sadly this budget increases taxes, spending and borrowing, is void of any meaningful cuts and falls woefully short of the fiscal changes our state must realize. All Republican amendments offering constructive alternatives to portions of the budget most opposed, failed along party lines.