Capitol Update -- Budget and Taxes

Dear Friend,

Just yesterday, I proudly stood with fellow House and Senate Republican legislators as our leadership, Senate Minority Leader John McKinney and House Minority Leader Larry Cafero, unveiled our party’s alternative balanced, no-tax-increase budget for the next two fiscal years, building on the no-tax-increase budget put forward by Governor Jodi Rell in February.

Republican legislators have been calling for swift action to close our state’s massive budget deficit for over a year now. And for over a year, the Majority party has been virtually silent. Only on April 2nd 2009 did we, and the public, get a look at their budget proposal. After being put together behind closed doors, that proposal was filled with tax increases to the tune of $3.3 billion – the largest single increase in state history. Some of the lowlights of that proposal include:

• Income tax increases on just about every Connecticut taxpayer
• A phase out of the $500 property tax credit
• 30% surcharge on corporate tax payments
• 30% surcharge on the estate tax
• Elimination of the sales-tax free week
• Increases in sales taxes on over 50 categories of goods & services
  

These are just some of the increases and hikes that will be passed on to Connecticut residents if the Democrats’ budget moves forward – a scary reality for thousands of our state’s hardworking taxpayers. When so many families and businesses alike are facing foreclosure, layoffs, bankruptcy, now is NOT the time to try to squeeze more from them. This week, in fact, we learned there are now more than 141,000 Connecticut residents without jobs! How, then, will those unemployed folks be able to afford tax hikes, fee increases and the loss of tax breaks? The answer is simple. They, and countless others just won’t.

Instead of trying to tax the state out of this mess, Republicans have chosen to seize this opportunity to redefine state government.  By making state government more efficient and more transparent we have the opportunity to save a tremendous amount of money and therefore avoid burdensome tax increases which will only push families and businesses out of our great state. Instead, we want to balance a projected $8.1 billion budget deficit by reining in what has become reckless government spending by simply doing what so many of you are already doing at home, doing more with less.  It can be done and it must be done. Now.

Some of the highlights of our alternative include:

• Early retirement to save more than $285 million
• State worker concessions for salary, health care, pension to save $662 million
• Folding 16 agencies into 3 and implementing hiring freeze to reduce overhead costs
• Overhauling the higher education bureaucracy the duplicates services and drives up tuition for families struggling to pay for college
• Maintaining aid to schools and municipalities at 2007 levels
• Using the Rainy Day Fund as it was intended – for fiscal distress
• Imposing $900 million in hard cuts
• Restoring $25 million in municipal aid cut by Democrats & the $500 property tax credit for families earning as little as $46,000
• Engaging private companies that can perform duties such as state park maintenance
  

On Monday, legislative leaders from both sides of the aisle will meet with Governor Rell to discuss the various proposals. I truly believe both sides can come together to collaborate on a budget that won’t force our families and businesses to call other states home. But in order to make that happen, we must do all we can now to make Connecticut more affordable and more business-friendly, together.
As the debate on the different budget proposals unfolds, I will make every effort to keep you informed on the process and I encourage you to get involved in the process. Call your legislator, write a letter, send an email. Now, more than ever, we need you to participate in government.
As always, feel free to contact me on the budget or any matter concerning state government. I can be reached toll free at 800.842.1421 or via email at Michael.McLachlan@cga.ct.gov.

Very Best,

Michael McLachlan
State Senator, 24th District