Latest Budget Plan Would End Budget Stalemate; Governor Calls on Legislature to Approve Budget by September 1
Governor M. Jodi Rell, in an effort to move negotiations forward and have a budget in place by September 1, today presented a compromise budget alternative that provides an immediate tax cut for everyone, requires $520 million in spending cuts and proposes $710 million in new revenue.
“We need a state budget. It is time to move negotiations forward, not inch-by-inch but with great strides toward a meaningful agreement,” Governor Rell said. “If the Democrats show flexibility on the spending side, I will be flexible on the tax side. Therefore, I am offering a true compromise with my fourth budget that should be voted on and signed into law by September 1.”
“This budget maintains my number one priority to cut state spending and shrink the bloated bureaucracy of state government,” the Governor said. “Over the past 20 years, state spending has far outstripped the ability of Connecticut taxpayers to pay for it. My budget’s bottom line makes government more affordable – not just for the next two years but for the next 20 years.”
The Governor’s fourth budget plan cuts spending by $520 million, eliminates the inheritance tax, provides all families with tax cut by reducing the sales tax from 6 percent to 5.5 percent and exempts small and medium-sized businesses from the temporary 10 percent corporate surcharge proposed in her last budget plan and the Democrats’ last plan.
On the revenue side, this plan calls for increasing the income tax to 6.5 percent on individuals earning $500,000 per year and joint filers earning $1 million or more. The plan would also increase the tax on cigarettes from 2 to 3 dollars.
In exchange, the Governor is requiring that Democrats identify an additional $520 million in spending cuts.
“Due to my steadfast opposition to the Democrats’ tax plans, Connecticut taxpayers have already been spared $1.5 billion in new or higher taxes. Our state would have been devastated by the various Democrats’ budgets that relied on as much as $3.3 billion in new taxes when we began these negotiations.
“Frankly, I would prefer not to offer a budget plan like this. However, I have shown flexibility when it comes to revenue and a willingness to compromise in an effort to end this budget impasse. It is long overdue for Democrats to do the same when it comes to making real, meaningful spending cuts.
“My proposal keeps in mind the needs of Connecticut families, who are struggling in this national recession,” Governor Rell said. “I have often said that when I am at the budget negotiating table, I am negotiating on behalf of our families -- and the budget that I have promised to deliver to them is one they will be able to afford. The Democrats must meet me halfway so that we can finish the job we started so many months ago.”
