Look-Out – He’s got our credit card and he is going nuts!

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At last week’s State Bond Commission meeting Governor Dannel Malloy responded to a question by admitting that that his administration was informing Wall Street analysts that Connecticut would be dramatically increasing the use of the state’s credit card this year.

The CT Mirror’s story about the stunning announcement was entitled, “Malloy to Wall Street: Expect state borrowing to jump 40 percent this year.” 

There wasn’t a lot of other media coverage about the statement despite the fact that it is probably the single most important thing that Governor Malloy has said since he falsely claimed, during last year’s gubernatorial campaign, that there was no state budget deficit this year and that he would be able to solve next year’s projected $1.4 billion budget deficit without raising taxes or cutting vital services.

  • Recall that with less than a week to go before Election Day 2014, Malloy said the state was enjoying a budget surplus, although we now know that this year’s budget deficit has added up to over a quarter of a billion dollars and continues to get worse.
  • And as to his “Read My Lips” promise of no new taxes and no cuts to critical programs, the proposed budget that Malloy announced in February included $900 million in additional tax revenue, shifting about $300 million in existing spending onto the state credit card, along with a series of devastating and irresponsible cuts to essential state services.

But forgetting that Malloy didn’t tell the truth about the status of this year’s state budget deficit while misleading voters by promising to do the impossible when it comes to next year’s budget, the latest news that he plans to put another $2.4 billion onto the state credit card this year should be front page, top of the fold, large font headline news in every media outlet in the state.

Although the amount of state debt already makes Connecticut one of the worst states in the nation when it comes to how much debt our taxpayers must pay back over the next two decades, we now have a governor who increased the amount of annual borrowing from about $1.4 billion to $1.8 billion a year in his first term and has now announced that he is planning to borrow forty percent more this year.

As Keith Phaneuf explained in his CT Mirror article last week,

“Malloy notified the State Bond Commission on Tuesday that he increased what is commonly referred to as the “soft bond cap” from $1.8 billion to $2.5 billion for the 2015 calendar year.

That’s up almost 40 percent from last year, and almost 80 percent from 2012, when Malloy had set the cap at $1.4 billion.”

In an attempt to explain why the state would borrow such an excessive amount this year, Malloy told reporters,

“[M]oney continues to be relatively cheap and that can’t be guaranteed to last forever…Let’s try to capitalize on getting the cheapest possible money that we can when we have that opportunity.”

To put that statement into perspective, imagine calling a family meeting and telling your spouse and kids,

“Hey everyone, we just got a credit card in the mail with a low interest rate so you should all go out and buy all the things you want because we don’t know how long we’ll have access to low rates like these…and then when your youngest asks, but dad, how will we pay for the high monthly minimum payments that will be due each month for the next twenty to thirty years, you pat him or her on the head and say, I’m impressed you understand that point but don’t worry about it, we’ll cross that bridge when we get to it.”

In response to Malloy’s breathtakingly irresponsible announcement, the General Assembly’s Republican leaders on the Finance, Revenue and Bonding Committee pointed out not only does Connecticut rank as one of the most indebted states — per capita — in the nation, but observed that, “During these tough fiscal times we should be reining in borrowing.”

Of course, after their political shot at Malloy and the Democrats, the Republicans on the Bond Commission then voted for all the new bonding that was on the agenda for this month.

It should be noted that Malloy’s obsession with excessive borrowing is hardly new.

As the CT Mirror’s story notes,

“In the last two years leading up to the 2014 gubernatorial election — which Malloy won by defeating Greenwich Republican Tom Foley — the governor and the legislature’s Democratic majority also moved hundreds of millions of dollars of operating expenses onto the credit card to avoid pre-election tax hikes.

These steps included:

  • Refinancing debt to push $392 million in payments owed then until after the election.

  • Bonding $173 million in new municipal aid.

  • Bonding $57 million for pollution abatement and stem cell research grants that previously were paid for out of the operating budget.

  • Borrowing an extra $39 million so that debt payments tied to converting state finances to Generally Accepted Accounting Principles could be deferred until after the election.

And finally, as if to prove just how out of touch all of Connecticut’s leaders are on the issue of the growing burden they are placing on Connecticut’s taxpayers by borrowing more and more money, the CT Mirror story concludes with,

“Malloy spokesman Devon Puglia countered Wednesday that Republican lawmakers are not critical of state borrowing whenever the funds support projects in their home districts.

“I’ve never seen such hypocrisy out of the GOP,” Puglia said. “It’s unbelievable.”

Both Frantz and Davis [The Republican’s two top leaders on the General Assembly’s Finance Committee] serve on the bond commission and have voted to approve financing for various projects in their communities, or in those of their colleagues…”

Great, just great….

Rather than address the real problem, the Democrats and Republicans spend their time hurling insults at each other while they all just keep using the state’s credit card knowing that it is Connecticut’s residents who will end up having to pay off the enormous cost of the principal and interest they are racking up.

CT Capitol Report Headline Reads – The Oracle: Pelto: Told you so…

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While some tend to fall back on the phrase, “I told you so” much too often, the truth is that rarely does one get a chance to point to someone else confirming an individual’s claim that that they really were right when others were wrong….

So with that as the backdrop and propelled by an opportunity to brag, tempered by an appropriate dose of humility, I am proud to report that ctcapitolreport, the state’s leading news aggregation website, is sporting a headline that reads – The Oracle: Pelto: Told you so…

The reference is to my long-standing and on-going observation that in order to balance next year’s Connecticut state budget, provide sufficient revenue to fund critical services and begin to reduce the unfair tax burden on Connecticut’s middle class, Connecticut’s elected officials must find the courage to actually do what is necessary and that means appending Connecticut’s tax code to require that the state’s wealthy begin to pay their fair share of taxes.

Longer term Wait, What? readers will recall that this blog does cover issues other than the unfair, inappropriate and discriminatory Common Core Smarter Balanced Assessment Consortium (SBAC) Testing Scheme.

In fact, another primary focus of this blog has traditionally been Connecticut’s irresponsible fiscal policies that have resulted in a truly regressive tax system in which the state’s lowest income families pay about 12 percent of their income in state and local taxes, the middle class pay about 10 percent of their income in state and local taxes and the wealthy, who have been coddled by both Democrats and Republicans, only pay about 5 to 6 percent of their income in state and local taxes.

While the inequities in Connecticut’s tax system have been growing for decades, the problem has become particularly severe as a result of Governor Dannel Malloy’s unending fiscal gimmicks and his unprecedented dedication and addiction to irresponsible fiscal policies.

The article the website www.ctcapitolreport.com  is referring to is a news story posted early today by Connecticut’s premier budget reporter, Keith Phaneuf of the CTMirror.

Phaneuf has written another MUST READ story for those who want to understand Connecticut’s state budget and how Governor Dannel Malloy lied his way through the 2014 gubernatorial campaign by claiming there was no state deficit and that if he was re-elected we would eliminate the projected $1.4 billion projected deficit for next year without having to raise taxes or cut services.

Keith Phaneuf’s latest article is entitled “Tax hike ideas abound at the Capitol,” and can be found at: http://ctmirror.org/2015/03/23/tax-hike-ideas-abound-at-the-capitol/

The CT Mirror piece concludes with the following;

Former state Rep. Jonathan Pelto, D-Mansfield, who tried unsuccessfully to petition onto the 2014 gubernatorial ballot, predicted last summer that the big budget deficits projected for the next two fiscal years would eventually force a progressive income tax debate this spring.

“Requiring the wealthy to pay their fair in state income tax is the only responsible way to balance the state budget and begin to reduce the heavy and inappropriate burden on Connecticut’s middle-income taxpayers,” Pelto said last week. “Failure to require the rich to pay their fair share will mean unacceptable cuts in vital services and hurting the middle class and all working families by shifting even more of the tax burden onto local property taxpayers.

Or, in other words, “I told you so.”

Malloy budget targets most vulnerable among us

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As we know, Democratic Governor Dannel Malloy promised that he would not propose or accept any tax increase if he was elected to a second term  and then went ahead and proposed over $900 million in revenue “enhancements” in his budget address this week.

Malloy also used his re-election campaign to promise that he would maintain funding for local cities and towns and would not cut vital services.

On budget day, in the same document he proposed flat funding Connecticut’s Education Cost Sharing education funding formula; he cut about $70 million from a variety of important public education programs that assist local schools as they seek to serve some of Connecticut’s most vulnerable children.

And as if all of that wasn’t revolting enough, Malloy reserved his most drastic and draconian cuts for some of the state’s most important social service programs.

In a powerful and MUST READ commentary piece, Sarah Darer Littman lays out the truth about Malloy’s devastating budget plan in her commentary piece at the CTNewsjunkie;

Governor’s Budget Ignores Evidence, Hits Vulnerable (By Sarah Darer Littman)

Last week, after two years of hearing testimony, the Sandy Hook Advisory Commission issued its draft report.

One hundred and thirty pages of the 198-page report relate to mental health issues, and the importance of building “systems of care that actively foster healthy individuals, families and communities,” particularly in light of research showing that “approximately half of young people qualify for some behavioral health diagnosis by the time they reach 18.”

Yet less than a week later, when Gov. Malloy revealed his biennial budget for 2016-2017, it was as if the Commission had produced an expensive paperweight, for all the attention it received from the administration.

According to an analysis by CT Voices for Children,  the “Children’s Budget” – state government spending that directly benefits young people – makes up only a third of the overall state budget, yet over half (54 percent) of the governor’s proposed cuts come from programs affecting children and families.

That’s before we even get to health care and education.

The Sandy Hook report specifically mentioned the importance making it easier for families to obtain mental health services for young people. Yet the budget reduces funding for the Young Adult Services program by $2.7 million (3.3 percent) and reduces funding for school based health centers by $1 million (8.5 percent).

In the Department of Education, the governor plans to eliminate funding for “lower priority or non-statewide programs” by $ 6.2 million. Here we’re talking about programs such as Leadership, Education, Athletics in Partnership (LEAP); Connecticut PreEngineering Program; Connecticut Writing Project; neighborhood youth centers; Parent Trust; science program for Educational Reform Districts; wrap-around services; Parent Universities; school health coordinator pilot; technical assistance – Regional Cooperation; Bridges to Success; Alternative High School and Adult Reading; and School to Work Opportunities. Not only that,he’s cutting $6.49 million annually for Extended School Building Hours and Summer School components of the Priority School District Grant (i.e. grant program for districts with greatest academic need).

Wrap-around services, longer school days, and enrichment for students, particularly in the more disadvantaged districts, were something Malloy touted when he was selling his education reform package back in 2012. “It’s not as if we don’t know what works,” Malloy said in an article in the New Britain Herald: “wrap-around services, longer school days and longer school years, Saturday enrichment options.”

On top of what Malloy said, there’s over 100 years worth of research on summer learning loss. It disproportionately affects lower-income students whose parents can’t afford to send them to pricey summer camps or other enrichment activities. What’s more, the effects are cumulative, contributing to the achievement gap.

Take the time to read Sarah Darer Littman’s entire commentary piece.

You can find it at: http://www.ctnewsjunkie.com/archives/entry/op-ed_governors_budget_ignores_evidence_hits_vulnerable/

Dan “Read My Lips” Malloy goes with $900 million plus in new revenue…

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During his campaign for re-election, Governor Dannel Malloy told Connecticut’s voters that there was no state budget deficit this year … [Despite the fact that a sea of nearly $250 million in red ink appeared after Election Day.]

And Malloy’s most consistent and outlandish claim was that he would not propose or accept any new taxes if the citizens of Connecticut re-elected him to a second term.

But in this morning’s exclusive CT Mirror story on the new state budget plan that Governor Malloy will be proposing later today, we learn that the Governor will call for more than $900 million in new revenue over the biennium, of which about $500 million of that amount will come about by repealing pre-election tax breaks that Malloy proposed and signed into law during the past two years.  Malloy is also apparently reneging on the tax cuts he said he would institute if re-elected.

CT Mirror Reports;

“The biennial budget Gov. Dannel P. Malloy intends to propose today would erase a two-year, $2.5 billion shortfall with $1.6 billion in spending cuts and $900 million in additional revenue, an attempt to say he is equitably spreading pain while keeping a pledge not to raise taxes.”

Malloy, a Democrat re-elected last fall, is proposing a three-pronged approach to his second fiscal crisis in four years: deep spending cuts, combined with additional revenue raised by deferring promised tax cuts and boosting tax receipts without changing rates.

[…]

With a proposal that relies on $900 million in new revenue, Malloy can expect a vigorous debate over what constitutes a tax increase. According to administration officials, the budget creates no new taxes, nor does it raise rates, but it generates additional revenue by restricting tax credits, eliminating exemptions and making other tax rule changes.

Malloy campaigned on a pledge not to raise taxes and to deliver more than half a billion dollars in tax cuts over the next two fiscal years.

The governor’s plan bolsters net revenues by more than $900 million over the next two years combined. It does deliver a promised sales tax exemption for over-the-counter medications, worth about $29 million.

More on Malloy’s State Budget as it becomes available later in the day.

Ya know that “no tax pledge” I made during the campaign, well I lied! – Surprise

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So it’s finally official….

During last year’s gubernatorial campaign Governor Dannel “Read My Lips” Malloy repeated over and over again that he would not propose or accept any tax increases if the voters of Connecticut elected him to a second term in office.

[See 5/6/14 Wait, What Posts – Malloy’s “NO TAX” pledge will send Connecticut into the abyss or 9/3/14 Foley and Malloy are just plain wrong on taxes]

Of course, with the state of Connecticut facing a significant and growing budget deficit this year and a projected shortfall of at least $1.3 billion in next year’s state budget, the claim was never anything other than a hoax.

But hoax or not, Malloy not only stuck to his “no-tax” campaign promise but claimed that there wasn’t even a state budget deficit this year nor would there be a state budget deficit next year.

Well yesterday, the luster surrounding his absurd “no tax” pledge came off as Malloy confirmed that in his state budget address tomorrow he would be proposing to repeal the state law that eliminates the sales tax exemption on clothing costing less than $50, a law that he signed last spring and was scheduled to take effect on July 1, 2015.

Malloy told reporters, “There is a reality (that) this is a tough budget.  No one is sugar coating that.”

According to media reports, Malloy is still insisting that he is not raising taxes – although in the real world – if you propose a bill that requires Connecticut consumers to pay a 6.35 percent sales tax rate on clothing costing less than $50 — when they would not have done so without that proposal – it is called raising taxes.

But Malloy’s retort is that although consumers will actually have to pay the sales tax on clothing – starting July 1, 2015 – when they would not have otherwise been required to do so – the sales tax rate will drop from 6.35 percent to 6.20 percent on Nov. 1 2015 and will drop again to 5.95 percent on April of 2017, more than two years from now.

According to Keith Phaneuf at the CT Mirror,

“The governor tried to emphasize Monday that his focus on tax relief right now, given the limited resources available to him, “has to be middle-class-centric.”

But last May, when nonpartisan analysts were projecting the same post-election fiscal woes that they are reporting now, the governor was adamant that no taxes would rise after the election.

“I gave at the office,” he quipped, implying that the $1.8 billion in tax hikes he signed to close a big deficit in 2011 were sufficient.

As Phaneuf observes in his latest article, what’s changed?

“Since next year’s projected deficit – $1.3 billion – is the same as it was when Malloy took his no-tax-hike pledge…”

What has changed?

Well, Malloy got himself re-elected and now reality is starting to set in for the Governor and the people of Connecticut..

You can read more at; http://ctmirror.org/2015/02/16/malloy-coy-on-whether-his-plans-add-up-to-a-tax-increase/

Yippee – No New Taxes and you’ll be able to buy “cheaper” liquor for longer hours

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As we like to say here at Wait, Wait? You better sit down for this one,

Although the State of Connecticut is facing a projected $1.4 billion state deficit next year, Governor Dannel Malloy’s most significant campaign promise was that he would neither propose or accept any tax increase should the voters of Connecticut elect him to a second term.

In a made for media moment, Malloy went on a major morning radio show this morning to announce that rather than raise taxes, he would be proposing that Connecticut liquor stores be allowed to stay open on Mondays – Saturdays until 10 p.m and all the way until 8 p.m. on Sundays.

The hosts dutifully toasted the Governor’s proposal with tequila.

Malloy’s plan, according to WFSB TV News, will “lower the price of alcohol in the state and raise additional tax revenue for the state.”

Lower prices and more revenue without raising taxes….Hooray!

In what one supposes is a parallel proposal to promote more competition or create an incentive for more Corporate Hedge Funds to invest their money in liquor stores, Malloy also announced that he will also be proposing legislation that would allow liquor store owners to own up to six stores, rather than being capped at the existing number of three.

For those who are scratching their heads about how longer hours and more stores selling liquor will lower prices when the state mandates minimum per bottle pricing for all  types of alcohol in Connecticut, the Malloy administration explains that the Governor will also propose revising, but not repealing, Connecticut minimum liquor pricing policies.

According to the CT Mirror, “He says he would maintain minimum bottle pricing, but allow steeper discounts than are now allowed by law, namely by letting retailers charge consumers as little as the wholesale price.”

Considering governors normally release what they consider to be juicy tidbits in the week leading up to their budget proposal, Malloy’s announcement today really builds up the level of excitement for next week when he will propose his complete budget package to a joint session of the Connecticut General Assembly on February 18, 2015.

You can read more about this breaking news at the Courant via His Budget Might Induce Drink, But Malloy Wants Lower Liquor Prices and  CT Mirror at  His budget might induce drink, but Malloy wants lower prices

Are we there yet?  A big weekend for Wait, What? Blogs about the political landscape

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And this list doesn’t even include the ones in the pipeline:

Malloy’s commitment to coddle the rich!

In a new interview with the Hartford Business Journal, Governor Dannel “Dan” Malloy explains why we can’t ask the rich to pay their fair share;

Call it his most stunning, albeit honest, statement about his dedication to coddle the rich and ensure that the wealthy are not required to pay their fair share in taxes. In an interview with the Hartford Business Journal this week, Governor Dannel “Dan” Malloy reiterated his profound commitment to trickle-down economics and the notion that it is bad public policy to ask the rich to pay their fair share in taxes. Malloy told the Hartford Business Journal;

Maintaining, if not widening, the maximum differential between Connecticut’s taxes and New York and New Jersey’s is very important. I took a lot of heat amongst Democrats when I insisted that we maintain that differential in 2011, and I think it is important to do that. We know that the hedge fund industry in Connecticut has an advantage in Connecticut. Let us keep it. We know high-end earners [in Connecticut] have a tax advantage over New Jersey and New York. Let us keep it. Let us look at those areas that will allow us, particularly on a regional basis, to be a lower tax alternative.

Read the full blog at:  http://jonathanpelto.com/2014/10/04/malloys-commitment-coddle-rich/

 

Gates Foundation and Scholastic Corporation report that teachers love the Common Core!

Turns out teachers – LOVE – the Common Core.  In fact, an incredible seven in ten (68%) public school teachers report that they are “enthusiastic about Common Core implementation in their classrooms,”

Teachers, parents and public school advocates may want to play the YouTube video of Bobby McFerrin – Don’t Worry Be Happy song while reading this blog post.

The USA Today headline reads, “Survey: Common Core standards working well.”

In other words, the USA Today and other “main stream media outlets” are telling the Common Core naysayers to sit down and shut up with all this anti-common core mush.

How do we know the Common Core standards are working well?

Because the Bill and Melinda Gates Foundation, the driving force behind the Common Core and its unfair, inappropriate and expensive Common Core Testing Scheme, along with one of the companies that will profit most from the implementation of the Common Core, have a new public opinion survey showing that public school teachers love the Common Core.

Read the full blog at:  http://jonathanpelto.com/2014/10/03/gates-foundation-scholastic-corporation-report-teachers-love-common-core/

CEA and AFT-CT not alone in endorsing anti-teacher, corporate education reform champions

And finally, take heart Connecticut teachers…

Last month, the New Jersey Education Association voted to endorse U.S. Senator Cory Booker for re-election.  Booker, like Governor Dannel “Dan” Malloy, is among the nation’s most anti-teacher, anti-public education Democratic elected officials.

Malloy’s Commissioner of Education, Stefan Pryor, was Mayor Booker’s top aide in Newark, New Jersey before he returned to Connecticut to lead Malloy’s corporate education reform industry initiative with its anti-tenure, anti-teacher, pro-charter school provisions.

In New Jersey and Connecticut, teacher unions have caved in and handed their support to people who have spent years knocking down and stomping on teachers, parents and our public schools.

You can read the full post at: http://jonathanpelto.com/2014/10/05/cea-aft-ct-alone-endorsing-anti-teacher-corporate-education-reform-champions/

Malloy’s commitment to coddle the rich!

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Call it his most stunning, albeit honest, statement about his dedication to coddle the rich and ensure that the wealthy are not required to pay their fair share in taxes. In an interview with the Hartford Business Journal this week, Governor Dannel “Dan” Malloy reiterated his profound commitment to trickle-down economics and the notion that it is bad public policy to ask the rich to pay their fair share in taxes. Malloy told the Hartford Business Journal;

Maintaining, if not widening, the maximum differential between Connecticut’s taxes and New York and New Jersey’s is very important. I took a lot of heat amongst Democrats when I insisted that we maintain that differential in 2011, and I think it is important to do that. We know that the hedge fund industry in Connecticut has an advantage in Connecticut. Let us keep it. We know high-end earners [in Connecticut] have a tax advantage over New Jersey and New York. Let us keep it. Let us look at those areas that will allow us, particularly on a regional basis, to be a lower tax alternative.

Malloy’s comment that he “took a lot of heat amongst Democrats when I insisted that we maintain that differential in 2011,” is a reference to the decision he made in his first year in office to raise the Connecticut income tax rate on everyone except those making more than $1 million.  At the time Malloy told a joint session of the Connecticut General Assembly that he didn’t want to raise the income tax rate on millionaires because he didn’t want to “punish success.” Considering that Connecticut could raise its income tax rate on millionaires by a couple percent and still be lower than New York and New Jersey, Malloy’s statement was a spit in the face to every middle class and working family in Connecticut. And even worse, as a candidate for re-election he has made it clear that he will not deviate from that un-American and un-Democratic course. As noted in a Wait, What? Blog yesterday,

“Governor Dannel “Dan” Malloy inherited a $3.6 billion budget deficit from Governor Rell and the Democratic-controlled General Assembly.  After four years in office, Connecticut is facing a budget deficit of at least $1.4 billion next year and more than $4.8 billion over the next three years.  In response, Malloy and Foley have pledged that they will not raise taxes, cut services, reduce the number of state employees or need to engage the state employee unions in any negotiations about salary or benefits.”

But the truth is that additional revenue (read taxes) will be needed. The question is, will the rich be asked to pay their fair share or will the middle class continue to be the primary target of Connecticut’s bad fiscal policies? The fact is that Connecticut’s middle class pay about 10% of their income in state and local taxes, while the poor pay about 12%. By comparison, the rich only pay about 5% of their income in state and local taxes. We don’t have a progressive tax structure.  We don’t even have a flat tax structure. Connecticut has regressive tax structure that is crushing the middle class. But Malloy (and Foley) promise that they won’t raise taxes on the rich — even as a mechanism to make Connecticut’s tax system more equitable. One thing is certain… Malloy and Foley’s approach to the state budget will mean that Connecticut cities and towns will not get the state aid they will need to maintain their schools and other local services.  This, in turn, will require Connecticut’s communities to continue to increase local property taxes.  The result will be underfunded schools and a tax system that is even more unfair for the middle class and working families. Election Day is one month from today and thev reality of the situation is that Dannel Malloy continues to prove that he has voided his right to be called a Democrat. You can read the Hartford Business Journal article at: http://www.hartfordbusiness.com/article/20141004/PRINTEDITION/310039981

Forgive them, for they know not what they do – Not!

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Read my lips…No New Taxes!

“Both Democratic Gov. Dannel P. Malloy and his Republican challenger Tom Foley said they will not increase taxes… (CT NewsJunkie)

When Governor Dannel “Dan” Malloy took office he faced a $3.6 billion dollar deficit.

As result of budget gimmicks, the use of one-time revenue and his failure to require the wealthy to pay their fair share in income taxes, the candidate for governor that is elected next month will have to manage a $4.8 billion dollar deficit over the next three fiscal years, including at least a $1.4 billion shortfall in next year’s state budget.

But rather than tell voters the truth about Connecticut’s fiscal situation at last night’s WFSB candidate debate, both Malloy and Foley reiterated their promise not to raise taxes over the next four years.  Their pledges come despite the fact that both of these politicians know that there is absolutely no way to balance the state budget without additional revenue.

Both Malloy and Foley say that, if elected, they will not raise taxes, not cut vital services, not reduce the state workforce and will not need to negotiate contract changes with state employees.

The notion that such campaign promises could be met is not only laughable but it is a sad commentary on how far from the truth Connecticut’s gubernatorial candidates will stray in their ongoing efforts to get elected.

Malloy and Foley’s claim that they will “flat fund” the state budget purposely overlooks the fact that the state budget will grow by at least half a billion dollars next year including an additional $330 million for debt service as a result of Malloy’s excessive state borrowing and $170 million in increased payments to the pension and healthcare funds.

If Malloy and Foley were being honest with voters they’d be saying that if they win, they will need to raise taxes, cut services, transfer costs to the cities and towns and negotiate contract changes with state employees.

However, as appalling as the candidate’s performances were in last night’s debate, the award for “anti-democracy” goes to WFSB for excluding or agreeing to exclude Joe Visconti, the petitioning candidate for governor, from the event.

According to the CT Newsjunkie article, “WFSB officials didn’t include him because he didn’t receive 10 percent support in the last public poll.”

A candidate needs to get 10% in the polls to attend a debate?

Wait, What?

WFSB, in conjunction with the two major party candidates, banned Visconti from the stage despite the fact that he collected the requisite 7,500 signatures and will be listed as a gubernatorial candidate on this year’s ballot.  Although it should irrelevant at this point, Visconti also received 7 percent of the projected vote in the last public opinion poll.  That translates to over 70,000 Connecticut voters saying they will vote for the 3rd party candidate.

The decision by WFSB and the Democratic and Republican candidates to hold a debate without Visconti is nothing short of an insult to every voter in Connecticut.  Connecticut has been traditionally known as the Constitution State but to refuse to allow a certified 3rd party candidate to participate in the televised debate violates the most basic tenets of our democracy.

Rather than exclude 3rd party candidates, WFSB and other broadcasters have an obligation to open up access for their viewers.  As WFSB knows,

“Broadcasters have an obligation to serve the public’s interests, not just their own commercial interests. The government provides broadcasters free and exclusive access to a portion of the public airwaves – “spectrum” – for broadcasting. These profitable licenses come in exchange for broadcasters’ commitment to serve the “public interest, convenience, or necessity.”

Preventing a certified candidate for governor from participating in the televised debate should be viewed as a violation of WFSB’s broadcasting license.

Why Malloy’s (and Foley’s) anti-tax pledge is anti-middle class

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In a September 3, 2014 Wait, What? post entitled, Foley and Malloy are just plain wrong on taxes, the blog explained that Malloy and Foley are being fiscally irresponsible with their pledge not to propose raising taxes if they are elected. The article begins with the following;

Although Governor Dannel “Dan” Malloy is fond of saying that he inherited a $3.7 billion budget deficit when he was sworn into office in January 2011…The candidate who is sworn in as Governor of Connecticut in January 2015 will be facing a combined budget deficit of at least $4.8 billion over the next three years!   YES – You read that number correctly.  Even after taking into consideration increased revenue from an “improving” economy, Connecticut state government will be $4.8 billion SHORT of what it is needed to maintain the present level of services and meet its present statutory obligations.

As a result of Governor Malloy’s irresponsible borrowing policies, the state MUST increase its debt service payments by at least $672 million dollars over the next three years.  The additional mandatory payments for the state employee and teacher pension and healthcare funds will require an additional $620 million.

And that doesn’t even count the minimum increases needed to maintain the most vital state services.

There is absolutely no way to balance Connecticut’s state budget without additional taxes.  The question is not whether we will have tax increases, but who will be providing that additional state revenue.

Furthermore, by pledging not to “raise” taxes at the state level, there will be no meaningful state increase in state aid to municipalities and that will translate into massive increases in local property taxes, as towns face the growing costs of education, public safety and other local services.

While Malloy and Foley can try and claim they won’t raise taxes, by forcing higher local property taxes, the two major party candidates will – in fact – be raising taxes that disproportionately hit middle-income families and small business that are particularly hurt by the way in which Connecticut raises revenue at the local level.

But Malloy and Foley’s “no-tax” pledge is even more unfair than it seems because they are promising to maintain the existing tax system that coddles the rich.

As the non-partisan CT Voices for Children has reported;

  • In Connecticut, wealthy residents pay a smaller share of their income in state and local taxes than the rest of us, while families raising children are uniquely hurt by Connecticut’s present tax system.
  • After federal income tax deductions, Connecticut’s wealthiest families pay an average of 5.5% of their income in state and local taxes, while the middle class pay 10.5%, and the poor pay 11% of their income in state and local taxes.
  • In addition, Connecticut is one of only two states that make no adjustment in their income taxes for the cost of raising children.  A family with $60,000 of income with three kids owes the same as the family with $60,000 of income and no kids.  It is a tax policy that is hardly pro-child.

The candidates for governor who have made a “no tax pledge” is not only being fiscally irresponsible, but is sending a loud and clear message to Connecticut’s middle class.   What Malloy and Foley are saying is that not only are they refusing to take responsibility for properly running the state of Connecticut, but they are admitting that they will be leaving Connecticut’s unfair tax structure in place while increasing the burden on local property taxpayers.

As of now, the Democrat and Republican candidates for governor have made a strong case for why they SHOULD NOT BE ELECTED.  Only 3rd Party candidates Joe Visconti (and I) have had the courage and wisdom to admit that the next governor needs to keep all the tools of governance on the table.

It is time for Malloy and Foley to admit their no-tax pledge is bad fiscal policy.

Or worse, while they know that additional taxes will be needed to balance the state budget and reduce the burden on the middle class, they’ve decided to lie rather than tell the truth in an attempt to get elected.

Paid for by Pelto 2014, Ted Strelez, Treasurer, Christine Ladd, Deputy Treasurer, Approved by Jonathan Pelto

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