OP-ED | Malloy’s Budget a Good Start
by Susan Bigelow | Feb 17, 2011 10:35am
(11) Comments | Commenting has expired
Posted to: Opinion
Gov. Dannel P. Malloy finally delivered his much-anticipated budget speech to the legislature on Wednesday, and the news is exactly what we’ve been told it would be: bad. The budget is difficult, the long-dreaded deficit filled by a combination of spending cuts, government streamlining, and tax increases.
The news is most difficult, perhaps, for state workers who are yet again being asked to make concessions, this time to the tune of $2 billion. Malloy tried very hard to illustrate his theme of “shared sacrifice” when addressing state workers, calling state government unsustainable “in its current form.” He said that “The alternative to the two billion dollar figure would require us to completely shred the safety net and lay off thousands of state workers,” and warned that, one way or another, that money needed to come from state workers. “I don’t make these suggestions to be antagonistic,” he said. “Just realistic.”
For most Connecticut residents, though, the most controversial parts of Malloy’s budget will be the sales tax hike and, for high-earning residents, the small increase in the income tax. Malloy fairly sped through this part of the speech and gave no hard numbers, but he is looking to raise $1.5 billion in new revenue this way. He is also proposing that cities and towns be able to raise their own revenue through a tax increase on retail sales that will be returned to the town where it was collected, and through other means like increases in hotel and conveyance taxes.
The budget in general tries to strike a balance between higher taxes, service cuts and state worker concessions, and is tilted solidly towards the last. Even House Minority Leader Lawrence Cafero (R-Norwalk) was impressed: “That is probably the hardest push I’ve ever heard from any governor at any time,” he told the Hartford Courant on Malloy’s blunt message to the unions to either choose concessions or face layoffs. This clear message to unions is all the more surprising given Malloy’s close relationship with organized labor during the election.
Maybe that’s what it takes. Governors John G. Rowland and M. Jodi Rell tried an openly antagonistic approach to state employees, and mostly won themselves resentment and distrust for their efforts. Malloy, on the other hand, has some credibility and clout with the unions, and it’s clear he’s willing to use it to ask them to make tough sacrifices. Whether they’ll actually take him up on it remains to be seen.
Malloy’s budget is sure to provoke plenty of anger and outrage. Republicans are already unhappy at the idea of any tax increases, and advocates for higher education are pointing to a steep $143 million cut to the state’s public colleges and universities as draconian, and liable to lead to tuition increases. There is also plenty of doubt about whether Malloy can actually manage to wring such steep concessions out of the state employee unions, or pass tax increases through a legislature that has, in the past, often seemed unwilling to make difficult choices.
It’s very easy to say that the budget relies too much on taxes in a state where the tax burden is already high, or, conversely, that it taxes too little and asks state agencies and workers to shoulder an unequal portion of Malloy’s “shared sacrifice.” I’m sure we’ll hear those arguments again and again between now and June, and in many cases there will be concerns that need addressing. By and large, though, I thought the governor struck as good a balance as possible during these difficult times.
So what next? Will unions actually give enough back to close the gap? Will the governor be forced to agree to a larger tax increase than he’s proposing here? How much of the cuts will vanish in the legislature, and what will the public’s response be? We will likely get an early indicator of how voters feel about the budget when special elections are held later this month. We should also hear more as Malloy heads to “town halls” around the state to discuss the budget with residents. Malloy has done a lot of work to try and prepare the public for a difficult budget, and to justify the pain as best he can. We’ll see how effective a salesman he is for his plans, and what he might do if and when the legislature balks at them.
As for me, I think that while some of the cuts, such as those to health care for the needy and to higher education, are potentially very hurtful, this budget does a lot more right than it does wrong. Generally speaking, the balance of sacrifice does begin to address some of the major problems the state has, such as an expensive workforce, some inefficiency and redundancy, and a revenue structure that ties towns to the property tax.
It’s not perfect, but it’s a good start.
Susan Bigelow is the former owner/author of CTLocalPolitics.com. She lives in Enfield with her wife and cats.
Tags: budget, cuts, concessions, labor unions
(11) Comments
posted by: Hartfordatty | February 17, 2011 11:23am
I have a client who earns $27,000 in state benefits and earned income credit a year. (She is not only not alone, she is not unusual.) She has never had a job. She couldn’t get one even if she wanted to because she’d have to find one that paid &15;/hour with medical benefits without a high school diploma just to stay even. There are recent college graduates with children making $9/hour with no benefits. I didn’t get an explanation as to why the latter is responsible for helping keep the former in the lifestyle to which they’ve grown accustomed. I agree that sacrifices must be made, but why are the entitlement programs keeping the poor poor such a sacred cow that they are not being considered for cuts?
posted by: bgenerous | February 17, 2011 11:50am
I don’t find the small increase in the tax rate for the top earners controversial considering it very recently increased by 30% (from 5% to 6.5%).
While I’m glad the Governor didn’t lay the deficit on the door of the property taxpayers, the increased use of the conveyance tax isn’t welcome news for property owners.
posted by: Knitting Clio | February 17, 2011 12:21pm
As a state worker, I’m being asked to “sacrifice” twice—first in concessions, second in higher taxes. Where’s the “shared sacrifice” for the richest folks in the state?
posted by: hawkeye | February 17, 2011 2:35pm
Hartfordatty: Fifty years ago, the late Connecticut Democratic Party Chief John Bailey, brought in Southern votes, to cash in on our liberal welfare benefits. The great granchildren of this entitlement crowd, now are the vote, that supports Democrats at the polls, getting Gov. Donnel P. Malloy elected. Thats’ why the entitlement programs, keeping the poor, poor, is the sacred cow, that our Connecticut Democratic General Assembly will not consider for budget cuts!
This vote, keeps the Democrats in power, in Connecticut, which is also the reason, Democrats swept all of the big city voteS. Some call it, Democratic Party state prosperity, while the state is in a virtual state of bankruptcy.
People who have to work for a living, may have to move out of Connecticut, to survive, but the entitlement crowd in Connecticut, continues to grow and will never leave this state, as our Democratic lawmakers, continue to provide for them, as the voting power bloc, to keep electing Democrats.
State taxpayers are paying dearly, for Democratic Party prosperity! Gov. Malloy, and his Democratic General Assembly, will continue to provide them with the sacred cow, for political self-preservation.
Malloy and company, will not suggest any cuts be made to their Democratic entitlement voting bloc, that keeps them in power, even though, the state is “going down the tube,” and the working class is being forced, to pay more taxes, thanks to “the Gov. Malloy Magic Wand!”
posted by: PatrickT | February 17, 2011 4:29pm
This is a good start? How laughable.
Would someone please look up the definition of “sacrifice”. This “shared sacrifice” is neither. Sacrifice is something that is normally willingly offered. This is a half-step away from theft. Good start my butt.
posted by: ... | February 17, 2011 4:36pm
It is off to a good start for people who really look into it, like his comment about reviewing teacher tenure which missed most ears sine the moment taxes came up everything else disappeared. But the brief noise and anger at proposed, only proposed tax increases will die down in about a month for most residents as they see negotiations and reductions go through.
posted by: Polite | February 18, 2011 12:11am
Does anyone listen to what other neighboring States are saying about our Governor’s plan? http://www.nypost.com/p/news/opinion/editorials/connecticut_gift_to_new_york_t0w9A1oADLXXbcFLZiMv4J?
posted by: ... | February 18, 2011 9:30am
I wouldn’t consider the NY Post a highly reputable newspaper with in-depth editorials Polite. Just like a fair portion of CT, this article discusses only the half of a proposed (and only proposed, not law of the land) budget, taxes. Not the 2 billion in concessions to 45+ thousand people who will hbe directly affected.
Their are going to be spending cuts from the legislature as well too Polite over these three months. And don’t think Cuomo (who is also just starting up his job as well) is gonna get everything he wants as well. Neither will Malloy.
posted by: bingoballs | February 18, 2011 10:11am
Bank of America pays no state income tax!! Top 5% of the wealthy earned billions while everybody else was suffering!! One billion dollars in concessions for state employees equals an approx. cut in pay of $22,000.00 for each state employee when the majority of state employees make an average of approx. $50,000.00, without the additional taxes added on!!! Corporate executives and the Wall Street bankers are getting millions in bonus money again when it was their decisions that plunged this country into bankruptcy.
Where is the “shared sacrifice”???????
Stop pitting the private sector workers against the public sector workers because whether or not you like it, “WE ARE ALL IN THIS TOGETHER”!!!! This is a fight to keep the middle class alive and well, the fight for all workers to have jobs that pay well and have good benefits. They are winning this battle, and unless all workers, both private sector and public sector, come together and fight for “OUR FAIR SHARE”, there will be no more “middle class”, only the rich and the working poor, and the nonworking poor. WAKE UP AMERICA!!!
posted by: hawkeye | February 18, 2011 6:50pm
bingoballs: You object to state workers taking home less money, when 10% of our state work-force is unemployed. You promote the same union greed as the state unions in Wisconsin, also with a massive $3.5 billion dollar deficit, Democratic lawmakers, left the state of Wisconsin, so they would not have to face the same, union concession bargaining aganda needed in that state, even though these same lawmakers put Wisconsin into a massive budget deficit, as the Connecticut Democratic General Assembly, also buried us with their spending us into virtual bankruptcy.
posted by: hawkeye | February 19, 2011 12:25pm
Knitting Clio: Be happy you still have a job, as 10% of our working force is unemployed. You should complain about tax cuts, when our taxes, are paying your salary. You are the last person, under them umbrella of union greed that has buried our once great state, into a virtual state of bankruptcy, and now complains about making a double-sacrifice.
The State of Connecticut, does not owe you a living, even though, you have probably been “milking the state cow” for some time now.
Why are you so unappreciative, as a symbolic, union- benevolent parasite of society, for the free ride, you have had from non-state-employees?
Count you blessings, and don’t complain, “Knitting Clio!”