Calling on Connecticut legislators to stop bickering and cooperate together to address the fiscal crisis in the state. Gov. M. Jodi Rell unveiled a new revise state budget on February 3rd, 2010 that does not increase taxes or fees.
Gov. Rell, who delievered her final state-of-state address to the Democratic-dominated General Assembly, said that state residents are hurting from the economic crisis and they are looking to their leaders in Hartford to lead them and improve the condition of Connecticut.
Rell said that the new legislative session marks a new beginning to cooperate together to firmly confront the realities of sliding revenues and increasing costs. Rell and state legislators were at odds for months in 2008, failing to come up with an agreement on how to solve the budget deficit as state revenues continued to slide.
While Gov. Rell insisted more spending cuts were needed, many Democrats voiced their concerns that Connecticut's most vulnerable were getting hurt by the proposed cuts of Gov. Rell. There were some indications on Wednesday that talks could resume this year as Democrats started reviewing the details of Gov. Rell's proposed changes to the second year of the two-year $37.6 billion state budget.
Some voiced concerns about Gov. Rell's plans to implement copays of up for $3 for certain Medicaid recipients and to resurrect previous proposals to elminate or change coverage for certain services like vision care for adults on Medicaid. Governor Rell also reiterated her position that higher taxes will not solve Connecticut's financial difficulties.
But both Gov. Rell and legislators from both parties agreed on one point: Besides the state budget, employment creation must be the main priority for the three-month legislative session. The state's unemployment rate is currently 8.9%. House Speaker Chris Donovan (D-Meriden), said that their number one priority is jobs.
Gov. Rell and President Obama's number one goal is jobs. She said that they are all headed in the same route. Only good things can result from that. The revised state budget Gov Rell laid out is for the next fiscal year, which begins on July 1st. She is expected to release a budget deficit-cutting plan later this month to cover the current fiscal year's budget deficit.
When combined together, both years are about $1.2 billion in the red. Gov. Rell's revised $18.9 billion budget for the fiscal year 2010 spends nearly $28 million less than what was originally approved.
To cover the budget deficit in the 2010 fiscal year, Gov. Rell is relying on additional federal stimulus funding, borrowing a total of $1.3 billion against future revenue stream, cuts to state agencies, delaying a $100 million payment to the retirement fund of state employees and instituting the game of keno, a lottery-type game, to raise $20 million.
Gov. Rell proposed the game of keno last year but it fell flat with Democrats. Given Connecticut's continued financial difficulties, some said that they are willing to consider it. Senate President Donald Williams Jr. (D-Brooklyn), said that he was opposed to the game early on. He said that he does not like it but it is one of the proposals that Gov. Rell is placing on the table and he is willing to study it.
Gov. Rell also called for different fiscal reforms and more budget-cutting power. Her proposals would need a portion of future surplus funds to be automatically placed into Connecticut's Rainy Day Fund and create a new commission that would recommend options to solve the unfunded pension liabilities.
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John Sullivan
