Implement Constitutional Spending Cap

 Hartford, CT – State Senator Michael McLachlan (R-Danbury) today testified before the General Assembly’s Appropriations Committee in support of SB172: An Act Redefining Terms Concerning the Spending Cap.  Senator McLachlan proposed the bill at the beginning of the legislative session in an effort to protect the integrity of the state’s constitutional spending cap, which was approved by more than 80% of Connecticut voters in November of 1992.

“For too long the state’s constitutional spending cap has been used as a guide instead of a rule.  As a result, state spending has more than doubled in just the last 15 years,” said Senator McLachlan.  “Ever since the people of Connecticut voted for the spending cap, the legislature has been ducking its responsibility to fully implement it.  This bill will give the spending cap some teeth by finally defining its terms in a way that will limit government spending and protect taxpayers.”

In 1991, the General Assembly passed the statutory spending cap along with the Personal Income Tax.  A constitutional spending cap was later approved by more than 80% of the electorate in November of 1992.  The spending cap was adopted to limit spending growth to a level deemed affordable to taxpayers.  Under the rules of the cap, the state budget cannot grow faster than the five year average growth in personal incomes, or the rate of inflation, whichever is greater.  However, in most years, the legislature has voted to exceed the cap in order to spend surpluses.

In testimony today, Senator McLachlan said, “Some suggest we effectively have a spending cap by state statute and this is true, however, changing a statute is a relatively simple matter for the legislature. Changes to our Constitution demand a far more inclusive process with the voters of Connecticut.  I submit to you that the voters have spoken on this issue – over sixteen years ago.  Let us move forward with their request of this legislature.  Let us fully implement Connecticut’s Constitutional Spending Cap.”

Senator McLachlan represents the 24th District communities of Danbury, Bethel, New Fairfield and Sherman.  His complete testimony follows:

Testimony of State Senator Michael McLachlan before the Appropriations Committee of the Connecticut General Assembly
Re: Senate Bill No. 172, An Act Redefining Terms Concerning the Spending Cap
March 20, 2009

 

The Honorable Toni Harp & The Honorable John Geragosian, Co-Chairs

The Honorable Dan Debicella & The Honorable Craig Miner, Ranking Members

Members of the Appropriations Committee:

I am testifying today in support of SB172 - AN ACT REDEFINING TERMS CONCERNING THE SPENDING CAP.  Thank you in advance for considering this important bill as you deliberate over the budget crisis we face in Connecticut.

On November 3, 1992, Connecticut voters overwhelmingly approved a constitutional amendment to create a spending cap to prevent the state budget from growing beyond taxpayers’ ability to afford it.  It was then left up to the General Assembly to fully implement the cap by defining its terms.  These definitions must be enacted by a three-fifths vote in both the Senate and the House of Representatives.  Unfortunately, sixteen years, four months and seventeen days have passed since the voters of Connecticut approved the spending cap and the legislature still has not taken this important next step.  SB172 is an attempt to finally take that next important step.

SB172 will amend Connecticut General Statutes to define the words "increase in inflation" to mean the increase in the consumer price index for urban consumers during the preceding twenty-four-month period ending the calendar year preceding the fiscal year to which the budget relates, according to U. S. Bureau of Labor Statistics data. This bill also suggests defining "general budget expenditures" to mean expenditures from appropriated funds authorized by a public or special act of the General Assembly. “General budget expenditures” shall not include expenditures for payment of the principal of and interest on bonds, notes or other evidences of indebtedness or expenditures.

Some suggest we effectively have a spending cap by state statute and this is true, however, changing a statute is a relatively simple matter for the legislature. Changes to our Constitution demand a far more inclusive process with the voters of Connecticut.  I submit to you that the voters have spoken on this issue – over sixteen years ago.  Let us move forward with their request of this legislature.  Let us fully implement Connecticut’s Constitutional Spending Cap.

Thank you for your consideration.