STATE OF CONNECTICUT
THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775
WYMAN SAYS GOVERNOR'S BUDGET PROPOSAL IGNORES
||Contact: Steve Jensen
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
"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
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
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 - email@example.com
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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