It’s extremely important for politicians to hide horrors before
elections. One shudders to think how voting in Connecticut for the General
Assembly might have changed if Connecticut’s eminently dupable citizens had known
before they entered the polling booths that their state was running a deficit
of $365-million.
The admission that Connecticut was running a deficit large
enough to require Governor Dannel Malloy to submit a deficit mitigation plan to
the General Assembly came nine days after votes were tallied in Connecticut.
State law requires the governor to submit to the General Assembly a deficit
mitigation plan whenever a budget deficit reaches 1 percent of general fund
spending.
State statute requires Mr. Malloy to submit to State
Comptroller Kevin Lembo a deficit mitigation plan. After Mr. Lembo certifies
the deficit on December 1, the governor is required to present his plan to the
Democratic dominated General Assembly.
Members of the General Assembly no doubt were – SHOCKED!!! -- to hear the governor’s budget chief Ben Barnes, Secretary of the State of Connecticut Office of Policy and Management (OPM), tell the members of the Appropriations Committee on November 14 that the deficit was indeed a startling $365-million.
Members of the General Assembly no doubt were – SHOCKED!!! -- to hear the governor’s budget chief Ben Barnes, Secretary of the State of Connecticut Office of Policy and Management (OPM), tell the members of the Appropriations Committee on November 14 that the deficit was indeed a startling $365-million.
Mr. Lembo had an intimation, possibly before the elections
had been concluded, that the deficit was big. But this big? How could anyone
know?
Mr. Barnes assured the committee that he had not dozed off
before the election vote tally. He was fully awake: “Please know that my office
has already begun work on this plan, and while I’m not prepared today to
address any elements that might or might not be included in that plan, you can
expect that we will announce specifics as soon as possible.”
The governor, who in the past had accused his Republican
predecessors of engaging in budget gimmickry, was surprised, we are to suppose,
by the size of the deficit, a good portion of which, $260 million, was
attributed by Mr. Barnes to an unanticipated increase in the Medicaid
caseload. “The enacted budget,” Mr. Barnes
told the members of the Appropriations Committee, “did not assume the current
caseload of 83,827 would be reached until August 2013,” Barnes said.
But of course: Budget figures are only as good as the
assumptions made by those compiling budgets. Who knew?
If there is a single reporter in the state who did not
suspect Connecticut’s budget was hugely out of whack before Mr. Barnes' belated
admission on Wednesday, he or she should be fired by their Managing Editors.
Before Mr. Barnes' reluctant and tardy admission, Mr. Malloy
was corralled by a reporter and asked to dilate on what precisely he planned to
cut in order to bring his budget into balance.
These are decisions, Mr. Malloy said, yet to be made. The
governor, the architect of the largest tax increase in state history, had told
reporters days earlier – three times in a single interview no less – that he
would not raise taxes to balance his budget, recalling earlier professions by
other chief executives, the most memorable of which was former President George
H. W. Bush’s pledge: “Read my lips -- no new taxes.”
“What would really be nice,” the governor confided to the
reporters, “is if they would settle some of these issues in Washington so that
the budget I present in February actually builds in whatever changes” are made.
Asked the same question – what was to be cut in the coming
budget -- Mr. Barnes offered coyly, “Government spending. State government
spending. That’s about as specific as I’m going to get ... You act as if I have
in my mind a full list of what we’re going to do and I don’t yet. We’re working
hard to do that. Until we get through that process and work with the governor
and make sure we’re right on what the deficit is going to be, it’s way
(sic) premature for me to discuss what any kind of plan in the future’s going to be.”
However dark the deficit cloud, a ray of sunshine, one CTNewsJunkie reporter noted, pierced through: "Malloy
and Barnes both expressed hope that the state may benefit from a one-time
revenue spike generated by people selling off capital gains this year in an
effort to avoid new federal taxes next
year (emphasis mine)."
To put the matter clearly, Mr.
Barnes and Mr. Malloy hoped to receive a mini-bonanza from the quarter
millionaires taxed by a newly re-elected President Barack Obama, who claims to
have received from the people a mandate to increase the capital gains tax on business
producers. The business producers are expected by Mr. Barnes and Mr. Malloy
to sell off their capital gains to avoid
paying Mr. Obama’s onerous anti-entrepreneurial tax, but Connecticut will
reap additional revenues from the selloff that then may be applied to reduce
the state’s equally burdensome $365-million deficit.
This budgetary persiflage is, of
course, a one time, temporary patch – precisely the sort of “fix” Mr. Malloy
charged against his Republican gubernatorial predecessors.
And after the fix?
Comes yet another deluge of taxes –
either higher state taxes imposed by Mr. Malloy or pass-alongs, cuts in state
revenue sharing directed at municipalities which, of course, will require
increased municipal taxes to plug state induced gaps in municipal budgets.
Or – a modest suggestion from the
vastly outnumbered Republican loyal opposition in the General Assembly -- the
governor can just cut spending like other prudent cost conscious governors,
many of whom are Republicans.
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