STATE OF CONNECTICUT
NANCY WYMAN COMPTROLLER	OFFICE OF THE STATE COMPTROLLER 55 ELM STREET HARTFORD, CONNECTICUT 06106-1775	MARK OJAKIAN DEPUTY COMPTROLLER

State Comptroller Nancy Wyman today called the Governor's proposed budget a shortsighted spending plan that ignores the financial needs of Connecticut's cities and towns and the taxpayers who created an estimated half-billion-dollar surplus.

"The Governor acknowledged that the state budget is the people's checkbook," Wyman said, noting that the state income tax will contribute nearly $5 billion of the proposed $12 billion budget. "But what he didn't say is that his budget proposal will drain the taxpayer's checking account, add precious little to their savings account and run up their credit card debt by over three billion dollars."

Wyman said the Governor's budget proposal:

• Breaks the constitutional spending cap for the current fiscal year while using gimmicks to maintain the appearance of staying under the cap for the next two. Over the past three years, the Governor has exceeded the spending cap by $952.5 million. His recommendation to exceed the cap again in the current fiscal year would bring the total amount exceeding the cap over the last four years to nearly $1.5 billion.

• Claims to use the surplus to fund only one-time expenses, but actually spends more than $92 million of the surplus on ongoing programs.

• Cuts the sales tax on hospital services while simultaneously eliminating the uncompensated care program. The net result of this plan is a $100 million loss of federal reimbursement and a $50 million increase in the tax burden on state residents. Connecticut has consistently ranked last in the nation in the ratio of federal taxes paid to federal reimbursement received. Claims to increase funding for local school districts by lifting the cap on educational cost-sharing (ECS) but pays for that increase by cutting the amount of funding towns receive from the Mashantucket Pequot and Mohegan gaming payments. School districts with the greatest need lose under this proposal.

• Deposited only $28.9 million into the state's emergency Rainy Day Fund, despite forecasts of declining revenues in the coming years that may require the state to rely on the fund to avoid or lessen tax increases. The Comptroller has proposed legislation that would have deposited an additional $213 million into the fund this fiscal year.

• Authorized more than $3 billion in new debt over the next two years, worsening Connecticut's position as having the highest per-capita bonded debt in the nation at nearly $3,000 per person.

"The Governor calls this budget fiscally conservative," Wyman said. "But what this budget really does is ignore fiscal reality at the expense of the taxpayers. The citizens of Connecticut, and their money, deserve better."

The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - osc.opinions@po.state.ct.us

Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.

For Immediate Release
February 8, 2001

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