Despite having a pretty large surplus this past fiscal year, we’re staring at what could be a $145 million hole for next year. Gov. Rell wants agencies and the legislature to get working on some fixes, but only if they don’t involve raising taxes:
“Let me be crystal clear: I will not allow Connecticut to tax its way out of this year’s budget deficit,” the Governor said. “I will continue the hiring freeze, the out-of-state travel ban and the other cost-saving measures I have implemented. And I will order further rescissions in the coming weeks to make additional spending cuts at state agencies.
“I am therefore asking OPM Secretary Bob Genuario and Commissioner Pam Law of the Department of Revenue Services to make themselves available to the Appropriations and the Finance, Revenue & Bonding committees so that they might hear directly from these officials – as soon as possible – on the current status of the projected deficit,” she said.
That’s a sobering thought as we head into the general election in November. How will candidates address the growing deficit? What agencies will feel cuts, if any? Will the leadership of the legislature ignore her and raise taxes?
I’m sure that they’ll try and find some ingenious solution that involves slot payments, cigarette taxes and the money they found in an old shoe in the basement of the Capitol. But those sorts of creative accounting schemes, which I’ve been seeing come up now and again, only go so far. At some point, someone’s going to have to make a decision to either raise taxes or cut services of one sort or another.
Governor Rell should make some recommendations, and she should make them soon. Democratic leadership, including Speaker-in-Waiting Donovan, should do the same.
Source
“Rell sees $145-million deficit; opposes new taxation.” Ridgefield Press 8 September, 2008.
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