Connecticut’s Budget – 4/11/2011

Posted by Bob on April 13, 2011 under Daily Blogs | Read the First Comment

For many years games, gimmicks, political pandering and shortsightedness have dominated the budgetary process of the State of Connecticut.  Year after year, difficult decisions were avoided.  The long-overdue implementation of general accepted accounting principles (“GAAP”) will ultimately show the situation is more dire than it currently appears.  We now face what is projected as an approximately THREE BILLION, FIVE HUNDRED MILLION and 00/100THS ($3,500,000,000.00) DOLLAR deficit.  There is no magic or easy solution to resolve a shortfall of that size.

There has been a lot of rhetoric about the problems in Hartford, but unfortunately previous budget cycles have only made the situation worse.  Borrowing from future revenues, failing to adhere to funding recommendations from actuaries, agreeing to expenses that can not be sustained, and exhausting the state’s fund balance (or “Rainy Day” Fund) have put Connecticut in a very precarious financial situation. Most municipalities have taken great pains to avoid the temptation of such budgetary policies and are working painfully toward reducing long term costs.

Given the depths to which our state finances have sunk, I applaud Governor Dannel P. Malloy for his efforts to resolve the crisis which he inherited and support his proposed budget.  While reasonable minds can certainly disagree about each and every detail, Governor Malloy’s proposal is the only comprehensive plan that has been put forth to address the situation.  The Governor undoubtedly knows that some of his proposals are not politically popular, but has conducted himself in a mature and honest manner in explaining the dire situation to Connecticut residents.

What Governor Malloy’s budget does not do is attempt to balance the state’s massive deficit on the backs of Connecticut’s cities and towns.  Reducing aide to municipalities would have devastating consequences to local taxpayers.  The Educational Cost Sharing (“ECS”) allocation to Naugatuck in the 2010-2011 fiscal year alone was TWENTY NINE MILLION TWO HUNDRED ELEVEN THOUSAND FOUR HUNDRED ONE and 00/100THS ($29,211,401.00) DOLLARS. Even a slight reduction in that number would mean more layoffs of educators and support staff, an increase in the local mill rate or a combination of the same.  ECS funding is the largest of numerous state assistance programs that comprise part of Naugatuck’s local revenue on an annual basis.  Chief elected officials throughout Connecticut are fortunate to have a former mayor as our Governor who has balanced a budget successfully many times on the local level.

Much debate remains before final adoption, but passage of Governor Malloy’s proposed budget is in the best interests of Connecticut’s cities and towns.  While Connecticut’s state employees are not responsible for the deficit, hopefully their leaders remain committed to being part of the solution and willing to agree to a more sustainable government moving forward.  ”Shared sacrifice” will be painful, but many years of poor budgetary decisions require a fiscally responsible plan to restore financial stability.  Governor Malloy’s budget represents that solution.