Capitol Update by Rep. Scott Storms

I hope that you are enjoying your summer and taking advantage of the season! As you may be aware, the state is continuing to face great uncertainty concerning the 2017-2019 biennial budget. In an effort to keep you informed, I would like to briefly share the latest news from the Capitol.

We are more than a month into the fiscal year without a state budget. The Democrat majority and its leadership, by virtue of their slim voting margin in the House (79 D - 72 R), control the legislative agenda and determine when we will be called into special session in order to discuss and act upon a budget. As of today, no House Session has been proposed or scheduled, and I have been informed that none is likely until mid-September.

As of July 1, the fiscal power of the state has been transferred to the governor – who is ruling through orders on a month-by-month basis until a budget can be passed by the legislature and signed into law. Already, critical programs are being cut and/or suspended – all due to the inaction of the majority legislative leaders. Meanwhile, the governor continues to promote his agenda by spending money that we do not have on programs such as the UConn to Hartford bus service while proposing deep cuts to municipal aid. In Windsor Locks, the governor’s Executive Order, if fully implemented, would result in a 58 percent reduction from the fiscal year (FY) 2017 state funding level or a cut of $3,431,092. In Windsor, the governor’s Executive Order would eliminate $8,832,191 or a reduction of 69 percent from FY 2017.

Despite the call of many legislators to come together to discuss the budget, “negotiations” continue behind closed doors without any real end in sight. There are many divergent and competing interests at play in Hartford, and there is little agreement as to how to reconcile the many parts. Meanwhile, the majority party continues an inevitable journey towards cuts to municipal funding and nonprofit organizations, and another round of tax and fee increases. The recent SEBAC Agreement, while securing future wage and benefits for state employees, all but assures that no real structural reform happens within our state for several years as the four year ‘no layoff’ provision stifles creative solutions to make government more efficient and cost effective. Similarly, the restructuring of pension liabilities and the extension of pension and benefit provisions to 2027 ensures future state deficits without recourse. While the agreement does include some beneficial items like an increased amount that state employees pay toward their pensions and health care, it is counteracted because it also caps those increases, leaving the state to fund any health care cost overruns over the next decade. There are significant ‘hidden’ increases built into the SEBAC contracts and, in the long run, this new agreement increases costs for the state. I am disappointed that the agreement was approved independent of the budget process as there were real alternatives that could have better served the people of the state which are now unattainable.

Democrat proposals for sales tax and fee increases only serve to highlight the point that the majority party has yet to grasp the reality that we have a spending problem that must be addressed to first stabilize our state finances, and then prioritize what and how we spend our limited tax revenues. I will continue to work towards a “common sense” approach to resolve our fiscal budget uncertainties and will advocate support for long-term sustainable solutions as opposed to the short-term crisis management supplied by the current majority party leadership.

As developments occur, I will continue to keep you informed of the “progress” towards the adoption of a biennial budget. Meanwhile, please do not hesitate to contact me with your concerns or comments at Scott.Storms@housegop.ct.gov or call (860) 240-8700.

Patch file photo