Calling this a "trust fund" is truly a joke ... It was and is just a slush fund used for whatever ..... No lack of money if the terms of the "trust" were followed with any kind of integrity. JH ... Clean up your party's act and the problem goes away! View Comment
This could part of the reason people want to leave and are leaving. They recognize a train wreck when they see one.
"You Can’t Keep Doing the Same thing and Expect a Different Result
By State Senator Toni Boucher
Notwithstanding the work by Members of the Appropriations and Finance Committees, the $19 billion state budget the General Assembly recently adopted relies on nearly $200 million in fund sweeps (taking money from Fund Accounts to use to pay current expenditures), unrealistic savings assumptions and other gimmicks to stay in balance.
Most residents recognize that year after year state budgets contain higher spending and unrealistic budget projections. Those do not reflect the world we live in. Some would say Hartford leaders fiddle while Rome burns. Those observers would like a financial extinguisher to put out the fire and start the rebuilding process.
The reality of this administration’s budget, which has deteriorated every year, is that it relies on the State Department of Revenue‘s (the taxman’s) ability to collect $75 million in unpaid taxes – specifically by using “vigorous collection activity” and going after delinquent taxpayers to plug their budget hole.
The budget package, negotiated by the governor’s staff and majority party leaders, once again increases spending, increases taxes and takes money away from important funds dedicated to priorities like transportation and health initiatives. Major budget points include:
Creates a two-year deficit of nearly $3 billion through 2017
This budget does nothing to help the basic fact that the growth in our current revenue stream does not, and cannot support our current expenditures.
The Sales Tax exemption for clothing and footwear which is currently scheduled to go into effect on June 1, 2015 has been delayed.
The over the counter prescription drugs sales tax exemption is delayed.
An exemption for teachers on their pension is delayed.
Electric customers may see increased fees on their bills to balance the budget.
Continues past bad practices
Moves expenditures off the books (Medicaid accounts) to artificially reduce expenditures. Bonds more money for operating expenses.
Contains $27.1 million in additional fund sweeps including more money to the tune of $2.1 million from the Special Transportation Fund and $4 million from the Tobacco Health Trust Fund.
Does not fund $51.6 million in retirees healthcare costs
Includes funding for numerous new programs and initiatives
Includes funding to support 489 new state employees despite $10 million saving due to a “hiring freeze.”
Is not in balance by at least $126.6 million
$75 million in unpaid tax revenue from delinquent taxpayers with no guarantee they will materialize
Does not include the appropriation of $51.6 million for retiree health costs
This budget is unrealistic. The administrations promise of future tax breaks are unlikely to happen as the budget anticipates higher sales tax revenues when personal disposable income is going down. This translates to less spending on the part of the consumer, threatening to reduce sales, inheritance, car and gas taxes.
Connecticut’s job market has not recovered and people are looking to find a way out. A recent Gallup Poll reported that 1 out of every two residents would leave Connecticut if they could due to the high cost of living in our state.
Governor Malloy’s blaming of past state administrations, U.S. Presidents, federal budget cuts and changes in capital gains legislation is not believable. Other states have experienced the same challenges yet they are growing. Those state leaders have learned that budget problems can be overcome with responsible and realistic budgeting and lowering costs for taxpayers and businesses.
Despite the largest tax increase in state history the bottom line is that bad spending habits continue, our economy is not improving, and there is no guarantee that working families will catch a break any time soon.
We have a very weak foundation in which we base our state budget going forward. Hartford must change the way its handles its finances if our residents are ever – to get ahead. The administration can’t keep doing the same thing and expect a different result and we desperately need different results." View Comment
Good or bad? Depends upon the entities that leave. CT has a very fragile tax base ... Way less than 1% pays somewhere north of 30% of the taxes ... If they leave ... And they have the wherewithal and motivation to do so ... CT does a Detroit real fast. And maybe that is good ... Forces a fix where right now there is no political will power to do so.
The idea that pressure from the everyday voter is going to turn CT around is a fantasy ... The faster this bus goes over the financial cliff the better for everyone that wants to stay. View Comment