Managing Editor of the Journal Inquirer Chris Powell notes in a recent column that Connecticut’s constitutional cap on spending has over
the years been easily surmounted by governors and legislators determined to
spend money. And indeed, spending has spiraled in the state. Governor William
O’Neill's last pre-income tax budget was about $7.5 billion. Connecticut’s
current biennial budget is hovering around $40 billion, and the Democratic
dominated General Assembly has not yet finished tinkering with it.
By broadening the sales tax while reducing the sales tax
rate and removing from under the spending cap pension payments for state
workers, progressive magicians in the General Assembly are now in the process
of transmuting a multi- million dollar deficit into a multi-million dollar
surplus. Spending in Connecticut has tripled within the space of four
governors, one of whom was independent Governor Lowell Weicker, the father of
Connecticut’s income tax.
Mr. Powell notes that the constitutional cap “has been
evaded many times and has never been anything but a deception, a sop to
disgruntled taxpayers for enactment of the state income tax in 1991.” Evasion
has been made effortless by the failure of legislators to define the terms of
the spending cap.
The spending cap legislation itself is far more lucid – and
many hundreds of pages shorter – than former US Senator Chris Dodd’s mega bill,
Dodd-Frank, or the unreadable and unread Obamacare legislation. The spending
cap bill limits the increase in general budget expenditures to the five year
average in personal income growth or the 12 month rate of inflation, whichever
is greater, and the bill stipulates reasonable exception to its own strictures.
The bill stipulates that “general budget expenditures” include “all state
spending” except: payments on the principal or interest of bonds, notes and
other forms of debt; state grants to distressed municipalities (for grants in
effect on July 1, 1991); first year expenditures on federal mandates or court
orders. The bill further stipulates that the cap can be overridden only when
the governor declares an emergency or the existence of extraordinary
circumstances, after which at least 3/5ths of the General Assembly must affirm the declared emergency.
That’s it – a fairly straightforward and simple bill, easily
skirted, as Mr. Powell has noted.
Bill Cibes, formerly the head of Mr. Weicker’s Office of
Policy Management (OPM), recently has written an op-ed piece for a Hartford paper urging that the cap be repealed. Mr. Cibes once ran for
governor on an income tax platform. Soundly defeated, Mr. Cibes’ second act as
Mr. Weicker’s OPM chief permitted him to shape and implement Mr. Weicker’s
income tax bill. If Mr. Weicker was the
father of Connecticut’s income tax, Mr. Cibes was its wet nurse. Appended to
the tax was the spending cap provision, a sop to weak-kneed legislators
wavering in their approval of the income tax. Following his stint at the OPM,
Mr. Weicker prepared a cushy bed for Mr. Cibes, whom he appointed President of
the Connecticut State
University System, an administrative apparat governing four state universities
that since has expanded to include seventeen institutions presided over by
President of the Board of Regents
Gregory Gray. If citizens
object to the state’s big spenders, Mr. Cibes advised in his column, they can
always vote them out of office. Constitutional restraints are both unnecessary
and troublesome, according to Mr. Cibes, who has yet to demand the abolition of
the First Ten Amendments to the US Constitution, widely regarded as a restraint
on presidents and legislators who, in the absence of constitutional
prescriptions, also may be voted out of office.
Mr. Cibes is not alone in considering the cap an impediment
to improvident spending. Revising Governor Dannel Malloy’s out of balance
budget, the House Appropriations Committee recently approved the withdrawal
from the spending cap of more than $2 billion per year in contributions to
pension plans and other retirement benefit programs, boosting a projected
deficit into a substantial surplus, thereby eliminating the need of spending
reductions.
New revenue raising measures both reduce sales tax rates
while broadening the tax. Generally, Democrats intend to increase receipts by
around $1.9 billion in the next biennial budget. Bottom line: Connecticut’s
revenues will be raised by an amount sufficient to eliminate prospective
deficits and leave the Big Spenders with a sizable surplus to satisfy those
special interests, among them state workers unions, that have collared state
government.
The debate on removing state pensions from spending cap
strictures has produced a thought bubble from Toni Walker, the Democratic House
chair of the Appropriations Committee. The cap, Ms. Walker said, is “like this
fictitious instrument that is always used as a talking point. We’ve got to
really examine what is the purpose of the spending cap, and is it really
serving the people of Connecticut the way we need it to?”
Of course, the “purpose” of spending cap legislation is
evident from both statutory and constitutional provisions, artfully and
assiduously violated by Big Spenders in Connecticut’s General Assembly. The
purpose of the spending cap is -- big surprise -- to cap spending. People determined to violate the cap, Ms. Walker among them, so far
have done so with impunity. But let us not misidentify the instruments driving
Connecticut to Hell in a hand-basket. It is not the cap that forces legislators
to violate the cap. At the root of Connecticut’s budget problems lies a
quenchless lust for spending money, which will not be abated by the
legislature’s equally quenchless lust for appropriating new revenue. In the
long term, Connecticut cannot survive such thoughtless – and apparently endless
-- greed.
Comments
But the worst is to tax my vet! Have they no shame.....
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I drive on our Nutmeg interstates, and notice that the speed limits are obeyed in the event only of traffic jams, but I'm not in favor of removing them. Nor am I in favor of a formula for gradually increasing the limit. (Maybe tie speed to average vehicle weight or price of gas?) The speed limits work tolerably well, and can be easily adjusted.
But, unlike with the speed limit, there are now entire classes of individuals whose financial well-being depends on the spending limit or to fluctuations thereto. First are the people who are, or in the case of public education, people who perceive themselves to be, beneficiaries and recipients of government services. Then you have the people whose employment is providing those benefits and services. These people may be inclined to wonder with Walker; what is the purpose of the cap?
The spending cap may not be worth much, may be more hortatory than compulsory, but it seems to me better than nothing. At least it gives me another angle from which to complain about out of control government. Speaking of lawyers, have you ever noticed that respect for law, even (or especially) by lawyers, has diminished even as we have increasingly multitudinous attorneys many of whom serve in legislatures writing more and more inscrutable, complex, non-hortatory legislation? I have. It's almost as if our legal system has become adjunct to our social welfare system. Representative Walker, for example, isn't a lawyer. "Toni Edmonds Walker is a seasoned social activist and advocate for youth, education, and human rights." We really have to wonder; what is the purpose of law?
So, to repeat, what's curious about the spending cap is its assumption that spending should always increase. This assumption may itself reflect the more basic leftist assumption that not only is there no original sin, not only are the individuals in Ms. Walkers New Haven constituency essentially good, but so are government and its spending good. Best are those dedicated servants who work for the government. As Ms. Walker suggests, the spending cap is for show. It's a sop to those bitter clingers who don't necessarily see that because a $7billion annual budget is good a $20billion one is necessarily much better.