The Democrat-controlled General Assembly last week said it will have nothing to do with Gov. Jodi Rell”™s deficit mitigation plan to close the projected $466.5 million shortfall in the state budget.
No surprise there from a group who offered up a budget in September with little detail and one-shot financing ”“ rainy day fund and federal stimulus money ”“ as well as a heaping helping of new fees and taxes on businesses.
As far as the budget shortfall, better change that $466.5 million to $549 million.
At the beginning of November the shortfall was pegged at $407.6 million. Based on weak income tax receipts, the state Comptroller”™s office projected the state would end the 2010 fiscal year with a budget deficit of $624 million.
But earlier this month, state Comptroller Nancy Wyman said the budget deficit would be closer to $549 million.
The $75 million difference is attributed to the cancellation of a planned Jan. 1 sales-tax decrease of one-half percent. That cut was dependent upon the economy doing better. So much for optimism. If it had been enacted, Wyman said the reduction would have resulted in a revenue loss of about $129 million this year.
Income tax receipts remain weak, Wyman reported, despite an increase in the tax rate for upper-income residents.
“The extra revenue associated with the higher tax rate is being offset by a continued drop in overall receipts of the income tax,” Wyman said.
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The income tax was originally projected to bring in $6.6 billion by the end of the fiscal year. Wyman now expects it to bring in about $6.4 billion.
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Back in September, state spending was outpacing personal income growth 283.7 percent to 172.7 percent. The numbers spanned from 1987 to this year”™s estimated figures. The annual percentage change in state spending was 6.37 percent. Income only rose 4.71 percent per year.
A bad budget and this spending rate spells only trouble for the future of the state.
On Dec. 1, the comptroller reported collection of the quarterly estimated income tax payments was down by nearly 29.4 percent. Revenue from the payroll-withholding tax was down 4.3 percent.
Since October 2008, the state has lost more than 70,000 jobs.
Times need not be as dire as they look.
A little bipartisanship can go a long way.
We hope the legislature can at least meet with the governor and discuss some of the issues on the deficit reduction plan rather than proposing their own.
Maybe some lawmakers listened when acting Chaplain Frank Forzano offered this before the opening of the Senate”™s special session last week:
“Almighty God, send down upon those who hold office in this state the spirit of wisdom, charity and justice; that with steadfast purpose they may faithfully serve in their offices to promote the well-being of all people. Amen.”
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Shock and awe in a good way
Gov. M. Jodi Rell wanted to raise $200,000 to help about 700 Connecticut National Guard troops come home from their training bases in the Midwest during the Christmas and New Year”™s holidays.
The goal was surpassed by $50,000-plus.
“As these units prepare for service in Afghanistan and Iraq, their families are understandably anxious and missing their loved ones,” Rell said. “Now ”“ thanks to the tremendous kindness shown by the residents of our state ”“ they will have a chance to spend Christmas and New Year”™s together before departing on their mission. It is the biggest and the best gift we could give them. I am always pleased and honored to be governor of this great state, but on a day like this I am more proud than I can say.”
The money will be used to provide buses for two units ”“ the 1st Battalion of the 102nd Infantry Regiment and the 250th Engineering Company ”“ to travel to and from Indiana and Wisconsin to Connecticut during a 10-day holiday break in their training. The remaining funds will be used to provide other kinds of support to the soldiers and others who are already deployed.
“It is more than heart-warming ”“ it is, frankly, awe-inspiring to see the generosity of the people of Connecticut in action,” Rell said. “This year we have more members of the Connecticut National Guard deployed than at any time since the Korean War. Our state has come together to support these citizen-soldiers in a remarkable and deeply moving way.”
