Time to get back to work

Time to call for that special session, governor.

State spending is overdue for some major cuts.

We make this suggestion in the wake of state Comptroller Nancy Wyman”™s dire forecast for the state deficit.
Wyman and her staff do their work by the numbers, hard numbers ”“ actual tax collections and economic statistics.

Wyman last week said the total revenue so far for the year puts the state in the hole for $407.6 million. Based on weak income tax receipts, she projects the state will end the 2010 fiscal year with a budget deficit of $624 million.  Wyman”™s figure puts the deficit  $235.5 million higher than that estimated by Gov. Jodi Rell”™s budget office.

And by the way, that drop in revenue rings the death knell for the one-half percent cut in the sales tax that was to take place on New Year”™s Day. It was approved by the General Assembly in the 2010 budget and contingent upon the economy doing better.

The sales tax cut should never have been included in the first place. The sales tax is the one tax that spreads the pain evenly, unlike the so-called millionaire”™s tax or any number of taxes, fees and regulations that inflict pain on businesses struggling to make it in the state.

 

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Bring more businesses into the state has been the cry of those already struggling here. It”™s not quantum physics. More business means more sharing of the tax burden. It also means more jobs. More jobs, more taxpayers. More consumers.

 

Wyman said she does see a “slight improvement” in revenues near the end of the fiscal year. However, there”™s a lot to overcome.

“My projection takes into account the accelerating job losses, high unemployment and decline in personal income that Connecticut residents are seeing now and can expect to see in the near future.”

Wyman found the biggest drop in the income tax ”“ 29 percent as of September ”“ was in payments made quarterly by investors and others based on their estimated year-end income, which also includes bonuses.

A month ago, the comptroller was concerned about $473 million in unidentified state agency savings that are contained in the budget. Her concerns were warranted then and remain so now.

“The policy changes required to produce that level of savings are, for the most part, not addressed, Wyman said.
Which brings us back to our call for a special session of the legislature.

Gov. Rell, you need to get the lawmakers back in Hartford and have them address these amorphous budgetary savings they created. They are nothing more than sleight-of-hand tricks employed by magicians. But with magicians, a viewer is enthralled and sometimes even mystified by the end result.

We don”™t want to be mystified by the state budget.

We no longer want to see businesses tapped to keep the state afloat.

Let”™s end the tax-businesses-to-death approach.

Hard decisions need to be made, not just considered.

Elected officials need to end looking good for the constituents and start following through for the good of the entire state.