Month: May 2017

Sen. Osten Supports Democrats’ Budget Predictability Plan

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Sen. Osten Supports Democrats’ Budget Predictability Plan

State Senator Cathy Osten (D-Sprague) today joined Senate Democratic leaders at the State Capitol to unveil a ‘budget predictability plan’ that would help Connecticut avoid future revenue volatility while simultaneously reducing the chance of unpredictable budget deficits and paying down some underfunded liabilities.

The Senate Democrats’ plan permanently caps the amount of revenue that the state can expect to collect every year from its highly volatile estimates & finals (mostly capital gains) portion of the state income tax; the plan caps those estimates at $3.1 billion per year, the current year’s collection rate, and does not assume any more revenue will be collected from Connecticut’s wealthiest residents.

Any revenues that might be collected above that $3.1 billion in future years would be dedicated to increasing the state’s budget reserve (known as the ‘Rainy Day Fund’) or making payments on unfunded liabilities, such as employee retirement pensions. Contributions could also be dedicated to certain one-time capital projects, paying in cash, rather than borrowing money.

The Senate Democrats’ plan builds on recent Democratic efforts to lay out a sustainable path for responsible allocation of future-year budget surpluses, which also target budget reserve savings and accelerated debt repayment. Today’s proposal goes even further, dedicating volatile revenues above the cap level to savings even without the presence of an overall budget surplus.

“In three of the past four years, executive and legislative budget analysts have been unable to accurately predict our income tax revenues, and the results have varied from alarming to disastrous. We cannot continue to grow Connecticut and provide the quality of life and jobs that our residents desire if we are hamstrung by decreasing revenues and increasing fixed costs,” said Sen. Osten, who is Senate Co-Chair of the legislature’s budget-writing Appropriations Committee. “This proposal helps by capping the amount of revenue we can expect to collect from Connecticut’s ultra-wealthy residents, and the less revenue we have to spend, the more austere our budgets will be. But we’ll have fewer nasty budget surprises. I think it’s a trade-off worth making.”

“By limiting our state’s current and future reliance on highly volatile revenue streams, we can provide for more predictable budgets going forward and greater stability for all state initiatives,” said Senator John Fonfara (D-Hartford), Co-Chair of the Finance, Revenue & Bonding Committee and the architect of the budget predictability plan. “Dedicating volatile revenues we do receive to savings will strengthen the state’s fiscal position by improving our credit rating and paying down the unfunded liabilities that are now consuming an increasing share of state resources.”

Fonfara and Senate Democrats Announce Budget Predictability Plan

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Fonfara & Senate Democrats Announce Budget Predictability Plan

Proposal to Bring Structural Change and Stability to Connecticut’s Budget

Senator John Fonfara (D-Hartford) and Senate Democratic leaders of the General Assembly today unveiled their budget predictability plan. Since the national Great Recession, Connecticut has suffered from volatile revenues and unpredictable budget deficits. At the same time, unfunded liabilities have come to consume a growing portion of the State’s budget.

To address this problem and get Connecticut on steady financial footing, the Senate Democrats proposed instituting a budget predictability plan, recognizing the need to grow a robust Rainy Day Fund and pay down our long-term obligations.

“By eliminating the volatility and unpredictability of our budget process and instituting structural reforms we can stabilize our budget, responsibly pay down our debt and build a robust Rainy Day Fund,” said Senate President Pro Tempore Martin M. Looney (D-New Haven). “This plan will help set Connecticut on course for fiscal health and economic growth.”

“This plan puts an end to the cycle of uncertainty resulting from the budget’s reliance on unpredictable revenue streams. More predictable budgets are not only good for the state’s credit rating, they provide much needed stability for the state’s business community,” said Senate Majority Leader Bob Duff (D-Norwalk).

“By dedicating volatile revenues to paying down our unfunded liabilities and investing in our budget reserve fund, we will provide for more predictable budgets going forward,” said Senator John Fonfara (D-Hartford), Co-Chair of the Finance, Revenue & Bonding Committee.

The Senate Democrats’ plan sets realistic expectations for our capital gains and other volatile income tax revenues by permanently capping the estimates & finals (E&F) portion of the state income tax at projected FY 18 levels.

The estimates and finals portion of the state income tax is the portion paid by individuals who do not withhold income taxes—including small business owners and financiers who earn income from capital gains. The Democrats’ plan:

  • Sets a permanent cap on E&F revenues at projected FY 18 levels—revenue below this cap level would be eligible for general appropriations—i.e. to be built into the state’s baseline budget. Revenues above the cap level would instead be dedicated to savings.
  • Dedicates revenue above the cap level to responsible savings & additional debt payments—all E&F revenues above the cap level, i.e. all E&F growth from FY 18 forward (est. $30 million in FY 19), would be dedicated to structural improvement of the state’s fiscal health, as follows:
  Proposed (Volatility Cap)
BRF Balance / Appropriations Budget Reserve Fund Unfunded Liabilities Capital Expenditures
0 to 5% 24% 75% 1%
5 to 10% 45% 50% 5%
10 to 15% 42% 50% 8%
Greater than 15% 0% 90% 10%

The Senate Democrats’ plan would provide multiple benefits to the state’s fiscal health, including:

  • Managing our unfunded liabilities—Dealing directly with our unfunded liabilities by making additional, early contributions to the state employees’ and teachers’ pension funds, and retiree healthcare.
    • Additional payments made sooner will decrease the need for large payments in future years.
    • These payments would be in addition to annual ARC pension payments.
    • Establishing a permanent plan to manage our unfunded liabilities will improve the state’s standing with credit rating agencies—which may lead to lower interest rates on state bonding.
  • Lowering fixed costs—Additional payments on our unfunded pension plans will help to lower fixed budgetary costs in the future, preserving funding for essential safety net and economic development initiatives.
  • New contributions to the Budget Reserve Fund—Growing our rainy day fund better prepares CT for future recessions and further improves our credit rating, which means lower interest rates on bonding.
  • Available savings for capital projects or critical one-time initiatives—Allows for direct payment for capital projects or critical one-time initiatives, in lieu of issuing new bonds.
    • Paying for capital projects with free cash, as opposed to issuing bonds, saves the state on interest payments.

The Senate Democrats’ plan builds on recent Democratic efforts to lay out a Sustainable Path for responsible allocation of future year budget surpluses—also targeting budget reserve savings and accelerated debt repayment. Today’s proposal goes even further, dedicating volatile revenues above the cap level to savings even without the presence of an overall budget surplus.

The new proposal will not reduce the bottom line of the state budget in FY 18, unless estimate & finals revenues exceed current projections. In FY 19, the proposal is expected to reduce available revenues for general appropriations by $30 million.

Additionally, over the last six years, Democrats have consistently funded annually required contribution (ARC) payments on the state employees’ pension plan, reversing decades of negligent fiscal management by prior Republican and Democratic administrations.

Senate Democrats Announce Budget Predictability Plan

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Senate Democrats Announce Budget Predictability Plan

Proposal to Bring Structural Change and Stability to Connecticut’s Budget

Senate Democratic leaders of the General Assembly today unveiled their budget predictability plan. Since the national Great Recession, Connecticut has suffered from volatile revenues and unpredictable budget deficits. At the same time, unfunded liabilities have come to consume a growing portion of the State’s budget.

To address this problem and get Connecticut on steady financial footing, the Senate Democrats proposed instituting a budget predictability plan, recognizing the need to grow a robust Rainy Day Fund and pay down our long-term obligations.

“What we have developed is a responsible plan to eliminate wild fluctuations in our budget from year to year, while also remaining committed to paying down our unfunded liabilities and long-term debt obligations,” said State Senator Mae Flexer (D-Danielson). “This retooling of the way we predict revenues will allow us to get off the roller coaster the state has been riding financially, while also saving for our future and I am proud of the plan we have developed to stabilize our finances in the State of Connecticut.”

“By limiting our state’s current and future reliance on highly volatile revenue streams, we can provide for more predictable budgets going forward and greater stability for all state initiatives,” said Senator John Fonfara (D-Hartford), Co-Chair of the Finance, Revenue & Bonding Committee. “Dedicating volatile revenues we do receive to savings will strengthen the state’s fiscal position by improving our credit rating and paying down the unfunded liabilities that are now consuming an increasing share of state resources.”

The Senate Democrats’ plan sets realistic expectations for our capital gains and other volatile income tax revenues by permanently capping the estimates & finals (E&F) portion of the state income tax at projected FY 18 levels.

The estimates and finals portion of the state income tax is the portion paid by individuals who do not withhold income taxes—including small business owners and financiers who earn income from capital gains. The Democrats’ plan:

  • Sets a permanent cap on E&F revenues at projected FY 18 levels—revenue below this cap level would be eligible for general appropriations—i.e. to be built into the state’s baseline budget. Revenues above the cap level would instead be dedicated to savings.
  • Dedicates revenue above the cap level to responsible savings & additional debt payments—all E&F revenues above the cap level, i.e. all E&F growth from FY 18 forward (est. $30 million in FY 19), would be dedicated to structural improvement of the state’s fiscal health, as follows:
  Proposed (Volatility Cap)
BRF Balance / Appropriations Budget Reserve Fund Unfunded Liabilities Capital Expenditures
0 to 5% 24% 75% 1%
5 to 10% 45% 50% 5%
10 to 15% 42% 50% 8%
Greater than 15% 0% 90% 10%

The Senate Democrats’ plan would provide multiple benefits to the state’s fiscal health, including:

  • Managing our unfunded liabilities—Dealing directly with our unfunded liabilities by making additional, early contributions to the state employees’ and teachers’ pension funds, and retiree healthcare.
    • Additional payments made sooner will decrease the need for large payments in future years.
    • These payments would be in addition to annual ARC pension payments.
    • Establishing a permanent plan to manage our unfunded liabilities will improve the state’s standing with credit rating agencies—which may lead to lower interest rates on state bonding.
  • Lowering fixed costs—Additional payments on our unfunded pension plans will help to lower fixed budgetary costs in the future, preserving funding for essential safety net and economic development initiatives.
  • New contributions to the Budget Reserve Fund—Growing our rainy day fund better prepares CT for future recessions and further improves our credit rating, which means lower interest rates on bonding.
  • Available savings for capital projects or critical one-time initiatives—Allows for direct payment for capital projects or critical one-time initiatives, in lieu of issuing new bonds.
    • Paying for capital projects with free cash, as opposed to issuing bonds, saves the state on interest payments.

The Senate Democrats’ plan builds on recent Democratic efforts to lay out a Sustainable Path for responsible allocation of future year budget surpluses—also targeting budget reserve savings and accelerated debt repayment. Today’s proposal goes even further, dedicating volatile revenues above the cap level to savings even without the presence of an overall budget surplus.

The new proposal will not reduce the bottom line of the state budget in FY 18, unless estimate & finals revenues exceed current projections. In FY 19, the proposal is expected to reduce available revenues for general appropriations by $30 million.

Additionally, over the last six years, Democrats have consistently funded annually required contribution (ARC) payments on the state employees’ pension plan, reversing decades of negligent fiscal management by prior Republican and Democratic administrations.

Flexer, Senate Democrats Announce Budget Predictability Plan

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Flexer, Senate Democrats Announce Budget Predictability Plan

Proposal to Bring Structural Change and Stability to Connecticut’s Budget

Senate Democratic leaders of the General Assembly today unveiled their budget predictability plan. Since the national Great Recession, Connecticut has suffered from volatile revenues and unpredictable budget deficits. At the same time, unfunded liabilities have come to consume a growing portion of the State’s budget.

To address this problem and get Connecticut on steady financial footing, the Senate Democrats proposed instituting a budget predictability plan, recognizing the need to grow a robust Rainy Day Fund and pay down our long-term obligations.

“What we have developed is a responsible plan to eliminate wild fluctuations in our budget from year to year, while also remaining committed to paying down our unfunded liabilities and long-term debt obligations,” said State Senator Mae Flexer (D-Danielson). “This retooling of the way we predict revenues will allow us to get off the roller coaster the state has been riding financially, while also saving for our future and I am proud of the plan we have developed to stabilize our finances in the State of Connecticut.”

“By limiting our state’s current and future reliance on highly volatile revenue streams, we can provide for more predictable budgets going forward and greater stability for all state initiatives,” said Senator John Fonfara (D-Hartford), Co-Chair of the Finance, Revenue & Bonding Committee. “Dedicating volatile revenues we do receive to savings will strengthen the state’s fiscal position by improving our credit rating and paying down the unfunded liabilities that are now consuming an increasing share of state resources.”

The Senate Democrats’ plan sets realistic expectations for our capital gains and other volatile income tax revenues by permanently capping the estimates & finals (E&F) portion of the state income tax at projected FY 18 levels.

The estimates and finals portion of the state income tax is the portion paid by individuals who do not withhold income taxes—including small business owners and financiers who earn income from capital gains. The Democrats’ plan:

  • Sets a permanent cap on E&F revenues at projected FY 18 levels—revenue below this cap level would be eligible for general appropriations—i.e. to be built into the state’s baseline budget. Revenues above the cap level would instead be dedicated to savings.
  • Dedicates revenue above the cap level to responsible savings & additional debt payments—all E&F revenues above the cap level, i.e. all E&F growth from FY 18 forward (est. $30 million in FY 19), would be dedicated to structural improvement of the state’s fiscal health, as follows:
  Proposed (Volatility Cap)
BRF Balance / Appropriations Budget Reserve Fund Unfunded Liabilities Capital Expenditures
0 to 5% 24% 75% 1%
5 to 10% 45% 50% 5%
10 to 15% 42% 50% 8%
Greater than 15% 0% 90% 10%

The Senate Democrats’ plan would provide multiple benefits to the state’s fiscal health, including:

  • Managing our unfunded liabilities—Dealing directly with our unfunded liabilities by making additional, early contributions to the state employees’ and teachers’ pension funds, and retiree healthcare.
    • Additional payments made sooner will decrease the need for large payments in future years.
    • These payments would be in addition to annual ARC pension payments.
    • Establishing a permanent plan to manage our unfunded liabilities will improve the state’s standing with credit rating agencies—which may lead to lower interest rates on state bonding.
  • Lowering fixed costs—Additional payments on our unfunded pension plans will help to lower fixed budgetary costs in the future, preserving funding for essential safety net and economic development initiatives.
  • New contributions to the Budget Reserve Fund—Growing our rainy day fund better prepares CT for future recessions and further improves our credit rating, which means lower interest rates on bonding.
  • Available savings for capital projects or critical one-time initiatives—Allows for direct payment for capital projects or critical one-time initiatives, in lieu of issuing new bonds.
    • Paying for capital projects with free cash, as opposed to issuing bonds, saves the state on interest payments.

The Senate Democrats’ plan builds on recent Democratic efforts to lay out a Sustainable Path for responsible allocation of future year budget surpluses—also targeting budget reserve savings and accelerated debt repayment. Today’s proposal goes even further, dedicating volatile revenues above the cap level to savings even without the presence of an overall budget surplus.

The new proposal will not reduce the bottom line of the state budget in FY 18, unless estimate & finals revenues exceed current projections. In FY 19, the proposal is expected to reduce available revenues for general appropriations by $30 million.

Additionally, over the last six years, Democrats have consistently funded annually required contribution (ARC) payments on the state employees’ pension plan, reversing decades of negligent fiscal management by prior Republican and Democratic administrations.

Larson Champions Democrats’ Budget Predictability Plan

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Larson Champions Democrats’ Budget Predictability Plan

photo of Senator Name.

State Senator Tim Larson (D-East Hartford) today joined Senate Democratic leaders in supporting a ‘budget predictability plan’ that would help Connecticut avoid future revenue volatility while simultaneously reducing the chance of unpredictable budget deficits and paying down some underfunded liabilities.

The Senate Democrats’ plan permanently caps the amount of revenue that the state can expect to collect every year from its highly volatile estimates & finals (mostly capital gains) portion of the state income tax; the plan caps those estimates at $3.1 billion per year, the current year’s collection rate, and does not assume any more revenue will be collected from Connecticut’s wealthiest residents.

Any revenues that might be collected above that $3.1 billion in future years would be dedicated to increasing the state’s budget reserve (known as the ‘Rainy Day Fund’) or making payments on unfunded liabilities, such as employee retirement pensions. Contributions could also be dedicated to certain one-time capital projects, paying in cash, rather than borrowing money.

“This budget cycle at the state level has been really difficult, when considering the outlying expenses that we have and how they are expected to continue to expand in the future if we don’t make a significant change to how we interpret revenues and plan to pay for our obligations,” said Sen. Larson, a former East Hartford mayor. “What we are proposing is to put a mechanism in place that starts to control and pay forward some of those obligations. I think the people of Connecticut—including retirees, business owners and state employees—are looking for some stability, and we believe this plan will be used at a tool to guide us in forecasting what pension costs and the state’s responsibility will be going forward. We need to pay down our debt and put money back into our reserve fund. This is a tremendous step forward for us, and over time it will show our municipalities and business community that the State of Connecticut is serious about paying down debt and controlling spending.”

The Senate Democrats’ plan builds on recent Democratic efforts to lay out a Sustainable Path for responsible allocation of future year budget surpluses—also targeting budget reserve savings and accelerated debt repayment. Today’s proposal goes even further, dedicating volatile revenues above the cap level to savings even without the presence of an overall budget surplus.

“By limiting our state’s current and future reliance on highly volatile revenue streams, we can provide for more predictable budgets going forward and greater stability for all state initiatives,” said Senator John Fonfara (D-Hartford), Co-Chair of the Finance, Revenue & Bonding Committee and the architect of the budget predictability plan. “Dedicating volatile revenues we do receive to savings will strengthen the state’s fiscal position by improving our credit rating and paying down the unfunded liabilities that are now consuming an increasing share of state resources.”

The Senate Democrats’ plan sets realistic expectations for our capital gains and other volatile income tax revenues by permanently capping the estimates & finals (E&F) portion of the state income tax at projected FY 18 levels.

New Transit-Oriented Economy Growth in New Britain

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Sen. Moore E-news: Educating Our Future Workforce

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Senator McCrory E-News: Fighting for Minority-Owned Businesses

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Bye Leads Unanimous and Bipartisan Senate Passage of Bill to Prevent Practice of Discredited “Conversion Therapy” in Connecticut

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Bye Leads Unanimous and Bipartisan Senate Passage of Bill to Prevent Practice of Discredited ‘Conversion Therapy’ in Connecticut

Photo of Governor Malloy signing the conversion therapy bill.

Governor Dannel Malloy signs House Bill 6695 into law minutes after it was passed in the State Senate as legislators and advocates look on.

Senator Beth Bye (D-West Hartford) today helped lead the overwhelming and bipartisan passage in the state Senate of a bill that would prohibit the practice of “conversion therapy” in Connecticut, a discredited practice in which a health care provider attempts to counsel and change a minor’s sexual orientation.

The bill passed the Senate today on a 36-0 bipartisan and unanimous vote after passing the state House of Representatives last week on a bipartisan and overwhelming 141-8 vote. The bill was immediately transmitted this afternoon to Governor Dannel P. Malloy, who signed the bill into law at his Capitol desk. The measure takes effect immediately.

“At its most basic level this bill helps support the emotional and physical health of young people who are going through a very difficult time in their lives, discovering their sexuality and coming to terms with that in a society which—even in 2017—is not always as accepting as it should be of America’s LBGTQ citizens. So it holds licensed professionals and others to a very high standard of behavior,” said Sen. Bye, a co-sponsor of the bill who led the Senate debate on the issue. “I think more importantly, this bill sends the message that homosexuality is not wrong, there is nothing to ‘fix.’ Hundreds of professional medical organizations have determined that, and our U.S. Supreme Court even ruled last week that there is no religious grounds for conversion therapy. So today was a big step forward for Connecticut in the arena of civil rights, and I am thankful to my Democratic and Republican colleagues for their overwhelming support of this bill. I think young people should take some comfort in the fact that both Democrats and Republicans in the Senate, people who are sometimes on the opposite sides of an issue, joined together today to support this bill and to support the teenagers who we seek to serve.”

“That this bill has moved so quickly through both the House and the Senate, and received such strong bipartisan support, sends a strong message that Connecticut supports LGBTQ youth,” said Rep. Jeff Currey (D-East Hartford), a co-sponsor of the bill with Sen. Bye. “I’m proud to have worked alongside Senator Bye to make our state a safer, more accepting place for all young people who fear they may be treated differently because of their sexual orientation or gender identity.”

House Bill 6695 prohibits health care providers or anyone “conducting trade or commerce” in Connecticut from practicing or administering “conversion therapy,” which is generally defined as any practice or treatment that seeks to change a minor’s sexual orientation or gender identity. The bill specifies certain types of counseling that are not considered conversion therapy, such as counseling that is intended to assist a person undergoing gender transition.

Under the bill, if any health care provider in Connecticut did engage in conversion therapy, it would be considered unprofessional conduct subject to disciplinary action. If anyone practiced conversion therapy while conducting trade or commerce, it would be deemed an unfair or deceptive trade practice. The bill also prohibits public funds from being spent on conversion therapy or any related actions.

Gerratana Leads Final Passage of Bill to Ban “Conversion Therapy” in Connecticut

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Gerratana Leads Final Passage of Bill to Ban “Conversion Therapy” in Connecticut

Conversion therapy is a discredited, dangerous practice aimed at changing a person’s sexual orientation

Senator Terry Gerratana today brought a bill to the floor of the Senate that would prohibit the practice of “conversion therapy” in Connecticut. House Bill 6695 received unanimous, bipartisan support in the state Senate today and an overwhelming vote of 141-8 in the House of Representatives last week. The bill was immediately transmitted to the desk of Governor Dannel P. Malloy, who signed the bill into law. The ban on conversion takes effect immediately.

“Conversion therapy is a dangerous practice, which has been rejected by the American Medical Association and has no place in Connecticut,” said Senator Gerratana, Co-Chair of the Public Health Committee. “LGBTQ youth don’t need to be changed or ‘fixed,’ they don’t need coercive therapy trying to make them be something they are not, they need our acceptance and support. Today’s vote is something we can all be proud of. It speaks to the values of our state and our commitment to creating a positive, accepting community for all our children.”

House Bill 6695 prohibits health care providers or anyone “conducting trade or commerce” in Connecticut from practicing or administering “conversion therapy,” which is generally defined as any practice or treatment that seeks to change a minor’s sexual orientation or gender identity. The bill specifies certain types of counseling that are not considered conversion therapy, such as counseling that is intended to assist a person undergoing gender transition.

Under the bill, if any health care provider in Connecticut did engage in conversion therapy, it would be considered unprofessional conduct subject to disciplinary action. If anyone practiced conversion therapy while conducting trade or commerce, it would be deemed an unfair or deceptive trade practice. The bill also prohibits public funds from being spent on conversion therapy or any related actions.