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Pretentious Progressives And The Rescission Dodge


If the Malloy administration seems to be pretentious, it is because Governor Dannel Malloy is fast becoming Connecticut’s pretender in chief.

Consider budget rescission. A rescission is a post-budget adjustment made by the governor without legislative approval. If the rescission is small enough, the governor need not refer his budget adjustments to the General Assembly, a politically embarrassing and time-consuming business. Any referral to the General Assembly would be a tacit admission that the budget figures previously presented and approved were out of balance, and any budget reconfiguration by the General Assembly would occasion multiple media controversies that easily can be avoided through the rescissionary process.

In January of this year, Mr. Malloy used his recessionary knife to cut upwards of $31 million from his budget: that was Mr. Malloy’s second rescission. The rescissionary red line is set by statute at one percent of the budget; passing the line, the governor must resubmit his budget to the legislature for re consideration.  Intermittent rescissions are common in the Malloy administration because smaller rescission bites do not trigger legislative overview or approval.

Shortly after Mr. Malloy proposed his first budget in 2011, he asked the Democratic controlled legislature to increase his recessionary authority from 5 to 10 percent. Democrats in the General Assembly were amenable to a temporary increase, and Mr. Malloy used his increased rescission authority to slice $1.6 billion from his two-year, $40.11 billion budget, according to CTNewsJunkie.com. The same Democratic dominated General Assembly was not at all amenable to early labor reforms proposed by Mr. Malloy. Arguing that “We need to make the relationship between the state and our employee base sustainable, something it currently is not,” Mr. Malloy proposed that the legislature invest him with authority to “privatize any state service he saw fit over the next two years.” That measure was indecorously stripped from the final version of the bill increasing Mr. Malloy’s rescission authority.

Misused, the rescission authority of the governor is one of multiple mirrors in a house of mirrors that legally skirts a constitutional provision assigning revenue and expenditure authority to the legislative branch of government. The rescission authority of the governor should be used only when emergencies occur that throw the budget out of balance; instead, it is used to cover willful “miscalculations” in the budget, and its frequent use absolves the legislative branch of its constitutional obligation to monitor, determine and adjust its own appropriations and expenditures.

The real purposes of rescissions are twofold: first, to make minor mostly temporary spending cuts in an already swollen budget; and second, to prevent the progressive Democratic controlled General Assembly from imposing more ruinous taxes – or, better still, from sucking money from similarly tax starved municipal governments.

Progressives in the General Assembly have no intention – none – of imposing permanent spending cuts on a petted, ravenous, union infested public employee workforce. By spending no time at all discussing permanent long term spending decreases, Mr. Malloy -- now a celebrity on the national progressive circuit – has, in concert with Connecticut’s Democratic dominated General Assembly, long since signaled a collective intention of raising yet more revenue. 

The Democratic majority in Connecticut has instead distracted public attention by flashing under the public’s nose bright and spangley social issues while surreptitiously picking the public’s pocket. This raid on the prosperity of Connecticut’s middle class may accurately be portrayed as a war on women and the poor and white men and fatherless over-schooled and under-educated children in Connecticut’s urban centers, and the war had been undertaken on behalf of a prosperous and growing tax gobbling union-protected much petted professional interest group that regularly votes in favor of the conspiracy of some against all.  

Comptroller Kevin Lembo has projected a $172.8 million deficit, which falls an eyelash short of the figure necessary to activate a deficit mitigation plan. God willing, Connecticut’s slow but inexorable slide into penury will trigger the mitigation process. Progressives in the legislature are poised to raise taxes on the rich, sending them fleeing to – who knows? – Indiana, a state upon which Mr. Malloy has declared a propaganda war that cannot fail to benefit the new Democratic leader of the national Democratic Governors Association, who is – trumpets please! – Dannel Malloy, the progressive porcupine. The final blow to Connecticut's faltering economy will come from progressives in the General Assembly undistracted by national adulation such as the wily Martin Looney, President Pro Tem of the state’s Democratic Majority in the House, a man who can club baby seals – fiscal but not social conservatives -- with the best of them.

Comments

peter brush said…
Today, I am challenging the legislature and business leaders across the state to join me in committing to build nothing less than a full-scale economic revival. Not a recovery, a revival. When I speak of a vision for an economic revival, what do I see?
I see a Connecticut in ten years that is a leader in bioscience and personalized medicine.
I see a Connecticut that leads in precision manufacturing.
I see a Connecticut that is home to a reinvigorated insurance industry, and I see a Connecticut that is a Mecca for digital and sports entertainment.
I see a Connecticut, ladies and gentlemen, where there are many, many jobs. New jobs. Thousands of new jobs. Blue collar jobs and white collar jobs.
Jobs building new affordable housing, jobs in agriculture, jobs in technology.
Jobs that pay well & provide good benefits. Jobs that won't be shipped down south or sent overseas.
Jobs that people will come to Connecticut to find, instead of leaving Connecticut to look for.
Source: Connecticut 2012 State of the State Address , Feb 8, 2012
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Malloy’s message comes as legislators have accused the normally activist governor of proposing his budget, then withdrawing.

The governor insisted Thursday that his disengagement was strategic, a recognition that legislators needed the same time his administration took to recognize that the budget for the biennium that begins July 1 will require painful cuts.

“It’s now time. You’ve had it for six weeks. You’ve examined it. You understand the revenue side. You understand what the spending cap is, or at least your leadership should understand it,” Malloy said. “Let’s get a budget. Let’s get it going. Let’s do our jobs. Let s stop bemoaning the situations we’re in and turn ourselves to the really hard work of finalizing a budget.”

Malloy's budget proposal raises taxes by expanding what is subject to the sales tax and by curtailing tax credits now enjoyed by business. The line he has drawn is opposition to raising tax rates, such as the income tax on high earners.

Asked Thursday what he considered a tax increase, he gave a three-word answer: "A new tax." 2015
----------------
"When you're preaching to people to tell the truth, Tom, you should do it yourself. ... You have spent two years attacking my integrity and my truthfulness. And now because we're pushing back a little bit, you're like a bully in the play yard who wants to call a peace now because finally somebody is answering what you've said for years about me."

"I didn't drive a company into bankruptcy. You did," Malloy said. "You should tell the truth to the people who are watching, Tom. ... I think fair is fair, Tom."

"You're a person who is worth tens and tens of millions of dollars. You paid no income taxes two years in a row, Tom," Malloy said.

"Listen, I really don't have a response to the governor," Foley said in his one-minute rebuttal. "Connecticut has some very serious problems — some of them are problems that you caused through your tax hike and your anti-business policies. I think this campaign should focus on that.''

If you had told the truth to the FBI, you wouldn't have gotten either of the jobs" in President George W. Bush's administration as an economic development official in Iraq and then as the U.S. ambassador to Ireland, Malloy said. "That's the reality.''
2014
dmoelling said…
I just returned from a business trip to the Midwest (Michigan/Wisconsin) and on local AM radio regional banks are advertising for loans to small/midsized manufacturers! There is no better indication of how poisonous the local economy is than that.

Combine that with conversations with ex-Midwesterners (like myself) who live in CT complain about how much costs have risen here, and how crabby everyone is. This will be a mini Argentinian style death spiral before we know it.

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