I’d like to share with you a column I recently wrote regarding the history and current implementation of our state’s constitutional spending cap. I’d like to apologize in advance in some of you have already had this same column sent to previously.
The spending cap, particularly the legislature’s ability to abide by its rules, has been a recent topic of discussion at the state capitol since the start of the budget making process within the past few weeks.
On early Sunday morning, the legislature voted on a budget that includes the sweeping $6 billion in Medicaid spending outside the cap over the next two years without the required two-thirds majority vote in the house. The budget also continues to borrow $750 million to pay for the state’s day-to-day operating expenses and $400 million of debt payments will be pushed back, increasing our interest payments.
Within the budget also lies a 16% increase in the gasoline tax, and funds originally dedicated for transportation purposes will be shifted to the state’s general fund, leaving less for bridge and road repair.
For these reasons, and many more, I joined my House Republican colleagues in opposing the proposed state budget and offering amendments which would drastically improve its language – but unfortunately, the ideas fell upon deaf ears.
My hope is that this column will leave you with a greater understanding of the state’s spending cap and the legislative process.
***
Legislature Must Adhere to Constitutional Spending Cap
In the midst of Connecticut facing a $3 billion budget deficit, Governor Malloy and the Majority Democrats in the legislature have proposed circumventing the constitutional spending cap by shifting nearly half-billion dollars outside of the state budget.
At a time when the legislature should be searching for an answer to our unresolved budget deficit, it appears the majority remains fixed on finding ways to spend even more money – which is exactly why a spending cap was implemented in our state in the first place.
In 1991, the General Assembly adopted a constitutional spending cap, and the cap which was ratified by the electorate on November 1992 and incorporated into Article III of the Connecticut Constitution as part of a compromise with the newly enacted state income tax.
In order for the cap to increase within a year, the increase cannot be more than the five-year average of personal income growth or the 12-month rate of inflation – whichever is greater.
This year, the constitutional cap would allow spending to increase by $19.4 million in the next fiscal year. Revenues are projected to be $19.39 million, and spending any more than we take-in would be reckless – but that does not appear to be preventing the majority from finding loopholes to escape the perimeters of the cap.
According to the Office of Fiscal Analysis, the governor’s proposed budget plan would exceed the cap by $466 million, and the Democrats’ plan would exceed $582 million; and both need a gimmick to bring them into compliance with the spending cap. Rather than following the state constitution, which requires a three-fifth’s vote in the legislature to surpass the spending cap, the majority party has decided to exclude certain state funds from the cap, mostly federally funded programs, including Medicaid.
This action is just another example of what has been a reoccurring theme at the Capitol. If the Democrats and the Governor can’t play by the rules – they’ll just simply change them.
A spending cap was placed into our constitution for an important reason: to protect our government from abusing its power by growing too large and spending beyond its means. Yet, my Republican colleagues and I find ourselves fighting to preserve the spending cap and its integrity year after year.
Modifications to the spending cap will open up the flood gates for additional spending, and, once again, taxpayers will feel the consequences. In these tough economic times, abiding by a spending cap is more vital than ever.
It’s the responsibility of state government to make the difficult decisions and start to cut back on our spending. It’s time to budget tax-payer money responsibly.
As always, if you have any questions regarding this topic, or any issue regarding state government, please contact me by calling my office at (860) 240-8700 or send me an email at Bill.Aman@cga.ct.gov.
