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

Foley and Malloy are just plain wrong on taxes

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[A special note of thanks to all of you who have posted comments and sent emails of support urging me to continue writing posts Wait, What?  While I will continue to mull over the various issues and opportunities, the following is an attempt to gingerly re-enter the fray by using this blog to raise what I feel are important issues as we collectively seek to educate, persuade and mobilize the citizens of Connecticut to take back control of their state government.]

With that as the backdrop, this blog is entitled, Foley and Malloy are just plain wrong on taxes.

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 number comes from reports produced by the Legislature’s independent Office of Fiscal Analysis).

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 is needed to maintain the present level of services and meet its present statutory obligations.

On the campaign trail, Malloy claims that there is “no deficit” in the future; these projections come from the same independent Office of Fiscal Analyses, the entity he quotes in his regular campaign stump speech.

The truth is that Connecticut continues to face a budget crisis, but rather than tell the truth about the fiscal house of cards that has been built up over the past two decades, the two major party candidates have made a calculated decision that politics trumps reality and that their best tactic is to mislead the voters in the hope that Connecticut citizens will remain docile, compliant and unaware of the fiscal crisis that will not only swallow up their economic stability but that of their children as well.

Malloy has based his campaign on a promise never to propose or accept any tax increase in a second term, while telling voters that he will not cut vital services and telling state employees that he will not need to discuss further concessions with their union leaders.

Tom Foley, in turn, has made an equally strong commitment to a “no tax” pledge” saying that he will honor the existing state employee agreement and that he will not use state employee layoffs to balance the state budget.

In a recent attempt to prove that Foley’s “no tax” pledge is bigger than Malloy’s “no tax pledge,” the Hartford Courant wrote that Foley and his running mate, Heather Somers have even launched a new online “No New Taxes Petition.”

The “I’m no tax, no I’m no tax” charade make Foley and Malloy the modern day equivalents of  Frick and Frack, the two Swiss skaters who their fame as original members of the Ice Follies,  doing ice skating tricks while wearing Lederhosen.

But if the Democrat and Republican candidates for Governor succeed in ducking the real tax issue facing the state, the people of Connecticut, especially our middle income taxpayers, will be the true losers.

The truth is that most of the expenses related to the $4.8 billion projected budget deficit over the next three years must be paid.  Neither Malloy nor Foley can wish or lie the problem away.

For example, Governor Malloy’s irresponsible borrowing policies mean that the state MUST increase its debt service payments by at least $672 million dollars over the next three years and mandatory payments to the state employee and teacher pension and healthcare funds will account for an additional $620 million.

Putting aside critically important issues like the increased costs for education, healthcare, transportation, support and services for citizens with developmental chalengees, our public colleges and universities and all the other areas of state expenditures, Malloy and Foley can pledge that they will not raise any taxes all they want, but the winner of the gubernatorial election will need to come up with $1.3 billion over the next three years just to pay the additional debt service on the state credit card and the minimum payments into the state pension and healthcare funds.

On top of which, while the “no tax” pledges sound good in a television ad, the major party candidates owe the voters a detailed list of where they are going to cut billions from the state budget and how they are going to sidestep having to sit down and talk with state employee unions about the financial crisis.

This isn’t a magic show.  It is an extremely serious decision about who will lead the state and how they will deal with the very real issue of increased taxes.

As taxpayers across Connecticut are aware…

When Malloy introduced his record-breaking tax increase in 2011, he increased the income tax rate for everyone except those making over $1 million a year.  He told a joint session of the Connecticut General Assembly that he wasn’t increasing the income tax rate on the wealthy because he didn’t want to “punish success.”

As if Connecticut’s middle class and working families weren’t the ones who really deserved to be called successful.

Furthermore, a growing number of people are aware that in Connecticut, middle income families pay about 10% of their income in state and local taxes, the poor about 12% and the wealthy about 5-6%.

When Malloy and Foley say their will not support any increase in state taxes, what they ARE saying is that the full burden for maintaining our schools and other important local services will fall on Connecticut’s already overburdened local property taxpayers.

In fact, every time a Connecticut voter hears a gubernatorial candidate say they he will not support additional taxes, they should understand that he is saying that he will continue Malloy’s strategy of coddling the rich and dumping the burden on homeowners, car owners and those who pay property taxes through increased rent.

When it comes to the 2014 gubernatorial campaign, one truth stands out.

Foley and Malloy will use their television ads to claim that they won’t raise taxes.

But there should be a huge disclaimer on those ads that should read:

If this candidate wins, vital state services will be cut and Connecticut’s middle class will be facing massive local property tax increases or face unparalleled cuts to their local public schools.

And no voter, liberal, moderate  or conservative, should cast their vote for either Malloy or Foley until each is willing to explain how they will actually deal with the fiscal realities that are facing Connecticut.

State Deficit?  What State Deficit?”

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In a recent interview with the CT Mirror, Governor Dannel “Dan” Malloy said,

“We really don’t have a deficit.”

However, if the truth be told, according to the non-partisan Office of Fiscal Analysis, the State of Connecticut continues to face a monumental fiscal crisis.  In fact, here are the projections from the experts for the fiscal years following this November’s election;

Fiscal Year 2016:  A $1.4 billion Connecticut state budget deficit

Fiscal Year 2017:  A $1.6 billion Connecticut state budget deficit

Fiscal Year 2018:  A $1.8 billion Connecticut state budget deficit

Malloy says the Office of Fiscal Analysis is wrong, although he uses their numbers when he complains that he inherited a $3.7 billion state budget deficit from former Governor Rell.

The most recent campaign pitch from Malloy is that he wants to be judged on his record.

And the fact is his record is extremely clear.

As a result of Malloy’s unfair tax package that coddled the rich and disproportionately hit the middle class, along with his constant use of budget gimmicks, the candidate who wins this year’s gubernatorial election will have to deal with a situation in which Connecticut will be at least $4.8 billion short of what would be needed to balance the state budget over the next three years.

Meanwhile, the cornerstone of Malloy’s campaign is his claim that he won’t propose or accept any tax increases during the next four years, he won’t need to renege on his deal with the state employee unions nor will he have to ask for further concessions from state employees and he won’t cut vital services here in Connecticut.

Is Malloy intentionally misleading voters?

Is he straight out lying?

According to that same CT Mirror article, Malloy says he will be able to achieve the un-achievable because, as he puts it, “he’s confident that both the nation’s and Connecticut’s economy are on the cusp of a major surge. 

As Connecticut heads into the last three months of the 2014 gubernatorial election, Governor Malloy may want to remember the famous phrase attributed to President Abraham Lincoln who said, 

“You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time.”

 If there is one thing that the 2014 campaign for governor should be about – it is tell the people of Connecticut the truth.

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

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