GOP Reintroduces Budget Reforms

02.05.2016
Issues & Policies

Legislative Republicans this week resubmitted a plan for short- and long-term state budget reforms to put Connecticut “on a new path toward fiscal sustainability, predictability and positive growth.”

The proposals, first proposed last fall, would achieve $370 million in savings this fiscal year, undo some recent corporate tax changes, restore cuts made to social services by the governor’s September rescissions, but require no state employee labor concessions.

GOPPlanChief among the tax changes are restoring the use of corporate tax credits to 70%, and eliminating the unitary combined reporting system.
The long-term GOP proposals would make structural changes in state spending, and require state employees to participate more in the funding of their healthcare and retirement benefits.
Republicans want to cement the definition of the state spending cap, which voters overwhelmingly approved 20 years ago but policymakers since have repeatedly changed.
The problem stems from the fact that the General Assembly has never formally ratified the cap into state law, which led the state’s attorney general last year to issue an opinion that until that happens, the cap has and “will continue to have no legal effect.”
GOP lawmakers also continue to call for an effective transportation lock box, and want to cap state borrowing at $1.8 billion annually.
Under the GOP plan, all state employees in non-hazardous positions would increase their contributions to their state pensions to 4%–still less than the New England average, they say, of 7% for government employees.

Under the plan, all state employees in non-hazardous positions would increase their pension contributions to 4%--still less than the New England average.

In addition, the Republican plan:

  • Stops longevity payments
  • Transitions new state employees to a defined contribution plan similar to what Rhode Island uses
  • Increases state employee health premiums and co-pays
  • Changes work rules to help state better manage employees and their time

Many of the recommendations match proposals introduced by Gov. Malloy in his midterm budget address this week.
And during his address, the governor also once again opened the door for all budget ideas to be presented at the negotiating table for the midterm revisions.
CBIA appreciates the GOP’s proposals and looks forward to working with the Republicans, their Democratic colleagues, and the governor to address and solve the state’s fiscal challenges.
Everyone involved should rally around real, long-term reforms so Connecticut can meet the competitive demands of a 21st century economy.
For more information, email or call CBIA’s Louise DiCocco (860 244.1169) |

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