Special Session: Navigating CT's Deficit Mitigation

In a historic special session held yesterday, the Connecticut State Legislature reopened the floor to rehash the state’s flawed budget and the negative effects it is having on employers and our economy.

At the open, the House Republican caucus moved to pass resolutions to (i) require the legislature to cast actual votes on state union contracts (instead of simply not acting on the contract where after it becomes law), and (ii) finally pass the needed legislation to trigger the decades-old constitutional spending cap. Unfortunately, both efforts were rebuffed by the democratic majority.

See Rep. Shaban’s video on YouTube

Also discussed was a bill to add a transportation fund “lock box” to the state constitution. The resolution as drafted, however, contained a host of exceptions and loopholes that could make the lockbox meaningless. A republican amendment to strengthen the language, and give citizens the right to hold the legislature accountable to the lockbox concept, was rejected by the democratic majority. Still, I supported the measure because it is at least a small step in the right direction. The bill passed 100 to 40, but not by the 3/4 vote required to place the constitutional amendment on next year’s ballot. By law, the constitutional measure will be reconsidered during the 2018 legislative session.

The main topic of discussion was the creation of a “deficit mitigation” package to fill the $350 million deficit for the current fiscal year, and to address the chilling effect that the latest tax hikes are having on employers large and small. While some of the majority’s latest tax hikes have been reduced modestly, the end product was still not good. Indeed, despite weeks of discussions, republican proposals to make structural changes were ignored – i.e., proposed changes that would impact our fiscal stability perpetually, instead of the current year by year borrow, patch and run approach employed by the majority.

After hours of debate, and the rejection of several republican amendments, the budget bill passed 75 to 65. In the end the majority’s budget “fix” strips funding to education, environmental programs and health care institutions, relies once again on $90-plus million in unspecified savings, and makes no substantive structural changes to the voracious size and spending rate of our state government.

Indeed, our budget deficit for 2017 is projected to be $358 million, and in 2018 the deficit is projected to be $1.7 billion. Meanwhile, the needy are hurt, and taxes will continue to rise, forcing more businesses and opportunities to flee the state.