Representing Brooklyn, Canterbury, Killingly, Mansfield, Putnam, Scotland, Thompson & Windham
June 25, 2009
Senate Democrats Pass Fair, Tough, Responsible Budget
Budget includes billions in spending cuts, call for shared sacrifice to solve largest deficit in state history
Senate Democrats have passed a state budget for the biennium that includes billions of dollars in spending cuts while preserving critical services for Connecticut’s families. The House is poised to approve the budget on Friday and then send it to Gov. Rell’s desk for her signature.
“We passed a fair and responsible budget that cuts spending and makes government more efficient,” said Senator Williams. “At the same time it is critical that we don’t make reckless cuts that will threaten our economy and shred our safety net. It is our hope that Gov. Rell will sign this budget and solve this crisis.”
Details of the Democrats’ plan include:
Billions of Dollars of Spending Cuts
The budget includes billions of dollars in cuts, including:
- Reduces outside consultant contracts by $95M per year
- Suspends payment for state’s share of Teachers’ Retirement Health & Municipal Health while holding teachers and municipalities harmless for a savings of $60m in FY10 and $65m in FY11
- Closes two prisons and implements other correctional policies for savings of $25m in FY10 and $45m in FY11
- Restructures Medicaid program for a savings of $25m in FY10 and $75m in FY11
- Implements SAGA waiver for savings of $6.8 million in FY10 and $38.6 million in FY11
- Reduces executive branch management by 10 percent across the board — $10.6M in FY10 and $12.5M in FY11
- Reduces DPS fleet by 20 percent for a savings of over $500k over biennium
Fair and Responsible Revenue
The budget includes essential ongoing revenues:
Income tax (Married Filing Jointly):
- $500k @ 6 percent
- $600k @ 6.5 percent
- $750k @ 7.5 percent
Also including:
- Cigarette tax — increase of $0.75 per pack
- Fee increases
- Modifications to the film tax credit
The budget includes temporary increases to help us through this economic crisis:
- Temporary 25 percent corporate surcharge
- Temporary 30 percent estate tax surcharge
The budget also relies on one-time revenues:
- Federal stimulus funds
- Rainy day fund
- Securitization of lottery proceeds
- Sale of surplus state property
More Efficient Government
The budget achieve various efficiencies:
- Streamlines functions of the legislative commissions by changing hiring practices so that the commissions are truly advisors to the legislature
- Transfers contract compliance and affirmative action functions of CHRO to the AG and DAS respectively
- Consolidates administrative hearing functions of DCF, DOT and CHRO into one Office of Administrative Hearings
- Instructs DOC and Judicial Department to work together to coordinate transportation of prisoners for a 10 percent savings in the cost of prisoner transportation. Also encourages increased use of video conferencing to reduce need to transport prisoners.
Restoration of Reckless Cuts Proposed by Gov. Rell
- LifeStar: The Governor proposed eliminating the entire LifeStar subsidy. $1.4m in each FY. This has been restored in the legislative budget.
- 1 percent Cut Across the Board on Medical Providers, including Nursing Homes: The Governor proposed cutting Medicaid provider rates, including nursing home rates, by 1 percent in FY10 and FY11. The cuts of $8.9m in FY10 and $11.6m in FY11 were restored.
- Family Resource Centers: The Governor proposed eliminating all funding for Family Resource Centers in both years of the budget. The Democratic budget restores funding of the Family Resource Centers — $6,041,488 in each year.
- Community Health Centers: The Governor proposed cutting funding to Community Health Centers by $3.9m in each FY. This cut was restored in the legislative budget.
- Prisoner Reentry Programs — STRIDE: The Governor eliminated funding for this program ($300k). The Democratic budget restores funding in the amount of $270k.
- JOBS First Employment Services: The Governor eliminated funding for this program ($18.5m each year). The Democratic budget restores funding at $17.5m for each year.
- Eyeglasses for the Poor: The Governor wanted to stop providing eyeglasses to adults on Medicaid, for a savings of $1.7m in FY10 and $2m in FY11. Our budget maintains this important service.
- Adult Dental Coverage: The Governor’s budget eliminated non-emergency dental services benefit for adults under Medicaid and SAGA (a savings of $22.7m in FY10 and $28m in FY11). The Democratic budget restored $14.7m in FY10 and $20m in FY11 to this important program.
- Higher Education Scholarships: Governor’s budget reduced scholarships like the Capitol Scholarship, the CT Independent College Students (CICS) Grant and the CT Aid to Public College Students (CAPCS) Grant by $24 million. The Democratic budget restores this entire amount.