State Senator Thomas P. Gaffey
January 1, 2009
Column: Opening Day Signals Start of Challening Budget Process
A column from the Meriden Record-Journal by Senator Thomas Gaffey
Beginning today with the start of the 2009 session and continuing over the next several months, the Connecticut General Assembly must approve a spending plan for the following two years to provide for the state’s needs despite sputtering revenue and a grim forecast for a quick turnaround. There’s little doubt our state government will have a dramatically different look when the next budget is enacted.
Today’s opening day of the legislative session is of particular significance to the City of Meriden with the election of our own State Representative Chris Donovan as Speaker of the House. Having worked side-by-side with Chris for the past fourteen years, I know he is ready for this rather daunting task in this very challenging economic climate. He knows a balanced budget will be hard won under these circumstances, but Chris will be guided by the one overriding principle to which he has always adhered: fairness. I am very proud to be his friend and wish him well in his new leadership position.
We must all seize upon the opportunity presented by these tough times and make bold decisions to safeguard our future.
First and foremost, with a wary eye toward dwindling state revenue we must vigorously reexamine every single state department and the programs they administer. Programs that no longer serve to improve the state must end. Consolidation of departments with duplicative programs and similar missions must occur. For example, as the Senate Chairman of the Education Committee, I know full well that state education policy is far better-served and implemented from a seamless pre-school through college perspective. That perspective lays the foundation for the proposed consolidation of the Departments of Education and Higher Education into one state agency.
Second, every single tax exemption and credit currently in state statute must be subject to an equally strenuous exam. One estimate, by the non-profit public policy clearinghouse Connecticut Voices for Children, suggests that corporate tax credits alone will cost our state more than $300 million during the current fiscal year. And make no mistake: these credits are tantamount to an expenditure because state taxpayers always have to make up for revenue not collected.
Other tax credits, for such things as film and television productions and other economic stimuli, and a host of sales tax exemptions must demonstrate their value to improving our State’s economy and be more than a simple giveaway to effective lobbyists. Credits and exemptions that fail the economic stimulus test should also end. As just one example of what might be considered such a giveaway: the repair, maintenance, and winter storage of certain yachts is sales tax-exempt ostensibly to keep state businesses competitive, but also to the benefit of those who can already afford such luxury craft.
Also in terms of revenue, I remain committed to the reinstatement of border tolls on Interstate highways. Next week the General Assembly is due to receive a detailed analysis of their viability and revenue potential. I was extremely disappointed by Governor Rell’s recent and seemingly close-minded decision to rule out this option even before the report — recommended by her own Transportation Strategy Board and for which taxpayers have already paid an astounding $1.176 million — is presented. Neighboring states generate hundreds of millions of dollars through tolls annually; Connecticut should, too.
Third, Connecticut should look to sell assets deemed desirable by others, like serviceable buildings and certain parcels of property, for which the state has no pressing need. There are several advantages to this beyond the quick cash to be generated. First, private investors stand to get a better price in this market; then the resulting business can generate payroll and/or sales taxes for the state. Municipal governments would also benefit from the addition of previously tax-exempt state assets to the local grand list for property tax purposes.
In Meriden a perfect example of this exists at the former Altobello Center on the Chamberlain Highway. The City has had inquiries of expressed interest and the site is convenient to an existing commercial and shopping area. We must strive to be creative in our thinking in this challenging economic environment.
Fourth, other areas of spending must be respected, particularly where the next generation would be adversely affected. For instance, the state cannot undermine future prospects for millions of students by slashing preK-12 education spending which will inevitably shift a huge cost burden to cities and towns. Neither can the new state budget penalize the middle class and jeopardize a first rate workforce with harsh tuition increases in its community college and state university systems. Investments in sound education policies pay huge dividends.
The state must also keep current with its bonding programs to maintain a vital infrastructure. If we ignore our bridges, highways, schools, dams and levees, mass transit projects, and prisons we do so at our peril. Scheduled maintenance of our ‘bricks and mortar’ foundation not only preserves it, but provides employment, keeps money circulating in our local economy, and avoids more costly repairs if allowed to deteriorate.
Meriden and Cheshire have several qualified, authorized projects like this that are “shovel-ready.” In Meriden, investments in a new mass transit center and the flood control project at the Hub property, redevelopment of the Factory H site, extending the linear trail from the Quinnipiac River gorge up to Platt High and reestablishing Hanover Pond would have immediate and far-reaching benefits. In Cheshire, the Water Pollution Control Plant, Sanitary Sewers, Infiltration and Influent Pump Station improvements along with the West Main Street Streetscape projects are top priorities. And once the Obama administration is in office, we’ll have a better idea about the value and schedule for any federal package to help states underwrite comparable infrastructure improvements.
Conversely, we must rigorously avoid borrowing for penny ante, optional projects that ought to be deferred or privately funded.
Connecticut’s future begins this week with a great deal of fanfare but there is no illusion about the amount of work ahead of us and the gravity of our circumstance. I look forward to hearing from — and working with — each of you as the process unfolds and we fashion a balanced budget and brighter future for our state.
Tom Gaffey represents the 13th Senatorial District, which includes Cheshire, Meriden, Middlefield, and Middletown.
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