State Can’t Tax Way To Prosperity
M. JODI RELL
August 2, 2009
There is a continuing battle at the Capitol
over the state budget, and those with the
most at stake are the families living in
Connecticut, the businesses operating in
our state and the men and women they
employ.
This fight is not about political
ideologies or economic theory. How
much government should spend, how
much it should tax and what kind of
budget will move us toward economic
recovery are questions that affect every
Connecticut family — and the answers
will determine the future of our state for
years to come.
The budget will determine whether we
start putting people back to work or
continue to lose jobs. The budget will
define the opportunities we create for
our children. The budget will make
structural changes to government that
will cut it down to a size our taxpayers
can afford — or set us up for budget
deficits in future years by maintaining an
unaffordable status quo.
Since I unveiled my first budget
proposal in February (I released my
third proposal three days ago), I have
argued that we must reduce the size and
cost of government. I have proposed
deep, painful cuts in spending. Hardly a
program or service goes untouched. They
were cuts I did not want to make — but
I had to make them. I looked at budget
requests like a family looks at the stack
of bills on their table: “How can I pay all
of these? There’s just not enough money.”
In other words, just as hardship is at
the door for thousands of Connecticut
households, it is also at the door of state
government. Families are cutting back
and so must state government. It’s that
simple and that logical.
Or is it?
I have been negotiating with the
Democratic majority for months, but it
has been become painfully clear they
cannot — will not — cut state spending.
In the Democrats’ budget proposal
Thursday, they offered $130 million in
spending cuts — that’s $130 million out
of a $37.9 billion budget, or about three-
tenths of 1 percent. In this recession,
which family, which business, which
organization has only had to cut its
spending by just three-tenths of 1
percent?
By comparison, I have proposed $1
billion in spending cuts — nearly ten-
fold what the Democrats offer.
Twice I have proposed budgets that
would have eliminated the deficit by
cutting spending — without increasing
taxes. Twice my budgets were ignored
by the Democratic majority. Not one cut,
not one reduction was acceptable. They
lamented that government needed every
program, every service, every layer of
bureaucracy.
Families could cut back — but not
government. Tax increases (and not just
on the wealthy) were the only answer,
they said.
First they proposed $3.3 billion in tax
increases, then they proposed $2.5
billion in tax hikes and, on Thursday,
they offered $1.8 billion in taxes on the
wealthy, on businesses, on smokers and
more. If nothing else, my battles with
them have their tax proposals going in
the right direction.
But the time for battling must end. I
continue to believe that imposing massive
new taxes is the worst thing we could
do during one of the worst economic
downturns we have ever seen. But the
fact is that Democrats overwhelmingly
control the General Assembly — they
have a “veto-proof” majority — and they
have made it clear they are interested
almost exclusively in tax increases.
In an effort to compromise, to do the
job the people of Connecticut want us
to do — pass a budget — I offered a
third budget proposal that calls for $1
billion in spending cuts and a modest
$391 million in tax hikes — increases in
sin taxes and a temporary surcharge on
corporate taxes.
We need a budget. We need to finish our
work and focus our efforts on creating
jobs for our citizens. But we need a
responsible, affordable budget. Two
years from now, there will be no federal
stimulus to prop up the status quo. Two
years from now, there will be no rainy-
day fund.
The size and cost of government must
be reduced over the long term or we will
find ourselves confronting more budget
holes, bigger holes, down the road.
I would prefer no new taxes at all.
But our state needs a budget and the
Democrats have made it crystal clear
they will not support any budget that
does not include new taxes. Compromise
is required, and I invite the legislative
leaders to join me in that compromise.
I am ready to work with the legislature,
but I will not strike a deal simply to get a
deal. I will continue to insist on a budget
that is right for the people of Connecticut
— a budget that helps families, creates
jobs and restores economic opportunity.
• M. Jodi Rell is governor of
Connecticut.
Copyright © 2009, The Hartford Courant