Gubernatorial Election 2014, Malloy, State Budget, State Deficit, Taxes Gubernatorial Election 2014, Malloy, State Budget, State Deficit, Taxes
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/
Gubernatorial Election 2014, Malloy, State Budget, State Deficit Gubernatorial Election 2014, Malloy, State Budget, State Deficit
Keith Phaneuf’s lead article in yesterday’s CT Mirror reads, “Malloy doesn’t get predicted revenue boost, big deficits remain.”
“A new analysts’ report Thursday found tax receipts and other revenues still likely to grow as originally anticipated last summer – when major deficits were projected for the next two fiscal years.
That means the governor — who has called those earlier estimates “extremely conservative” – still must close shortfalls topping $1.3 billion next fiscal year and $1.4 billion in 2016-17. Malloy, whose budget plan is due to legislators on Feb. 18, repeatedly has ruled out tax hikes.”
A political campaign dedicated to lying to Connecticut’s voters is in the past, and with the release of the “Consensus Revenue estimates,” Malloy’s Budget Director, Ben Barnes, announced “The revenue estimates for the biennium will be the basis for the Governor’s budget proposal.”
So despite a year of constantly denying the very real looming deficit, the Malloy administration finally admits that the dire “predictions” produced by the Independent Office of Fiscal Analysis are true.
Throughout his re-election campaign, Malloy claimed that not only would tax receipts grow by about seven percent during the next two years, but as the CT Mirror recalls, “Connecticut could expect more, according to the governor. And the revenue from that extra growth would make the deficit relatively easy to manage, provided municipal aid was kept flat and agencies did not receive inflationary spending increases.”
Is the news a surprising development? Hardly…
Here are just a handful of the budget related posts on Wait, What? over the past year;
10-24-14: Can we have a little honesty about Connecticut’s state budget problems?
No, because – That’s not how it works! That’s not how any of this works!
Rather than honestly confront the projected $1.4 billion budget deficit in next year’s state budget and the shortfall of more than $4.8 billion over the next three years, the two major party candidates for governor have decided to simply lie their way to Election Day in the hopes that voters will not discover the magnitude of the fiscal problems Connecticut will face over the next few years.
10-1-14: Forgive them, for they know not what they do – Not!
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.
8-13-14: State Deficit? What State Deficit?”
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.
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.
8-5-14 All is well in the Land of Oz
“We really don’t have a deficit…I know that’s hard to believe.” (Dan Malloy)
Malloy tells the CT Mirror;
- Connecticut doesn’t have a deficit
- There will be no cuts to key services
- There is no need to discuss concessions with state employees
- He will not propose or accept any tax increase during his four years as governor – even to shift the tax burden by making the wealthy pay their fair share so Connecticut can reduce the disproportionate pressure on the middle class.
And how is Malloy going to achieve this incredible feat of having more services, no additional taxes and no deficits? As the CT Mirror explains,
“The governor said he’s confident that both the nation’s and Connecticut’s economy are on the cusp of a major surge.”
7-14-14: Connecticut deserves a government that will tell its citizens the truth
As the CT Mirror explains in the series on where the candidates stand of the state budget, Pelto: State budget deficit reveals a broken fiscal system;
“Former state Rep. Jonathan Pelto doesn’t have any trouble standing out from the rest of the 2014 gubernatorial candidates. For Pelto, a $1.4 billion shortfall – more than four years after the last recession ended – typifies a broken fiscal system that threatens Connecticut’s schools, state workers’ pensions, and middle class families.”
6-6-14: Look there goes a flying pig!
The truth is that Connecticut is facing a projected state budget deficit of at least $1.3 billion dollars for the fiscal year that begins after this year’s gubernatorial election.
But today Governor Dannel “Dan” Malloy boldly announced… “We don’t face a deficit.”
In a late afternoon CT Newsjunkie story entitled, Malloy Dismisses Deficit Projections, Won’t Ask for More Concessions, the Governor not only explained that the deficit was going to disappear but he took the opportunity to repeat his iron-clad pledge that he will not propose or accept any new taxes in a second term.
As Malloy explained, “There will not be a tax increase.”
And to top things off, Malloy said that he was ruling out asking state workers for more concessions should he be re-elected as Connecticut’s Chief Executive Officer.
While the Governor’s hyperbole is impressive, there is not a state employee, retirees, public school teacher or retired teacher, let alone a public official or taxpayer who believes that Malloy’s portrayal of reality is accurate.
Hearing about Malloy’s remarks, one can’t help but dwell on that classic idiom about pigs flying or the one about Hell freezing over.
5-6-14: Malloy’s “NO TAX” pledge will send Connecticut into the abyss
As a result of Governor Malloy’s gimmick ridden state budget, the candidate who wins the 2014 gubernatorial election will take office facing a projected state budget deficit of $1.3 billion or more.
By using one-time revenues for on-going expenses, purposefully under-funding various government programs and utilizing a series of budget gimmicks, the new 2014-2015 state budget is just about as irresponsible as they come.
The moment Malloy signs it into law he will be creating a budget deficit for this year and a catastrophe in the budget that will follow.
But as irresponsible as Malloy’s latest budget is, nothing compares to the damage that will come with his recent “NO TAX” pledge should he be elected to a second term. Malloy sealed his fate when he recently told reporters that he would, “neither seek nor accept any further tax increases” in a second term.
Pandering to phantom voters, Malloy has engaged in a George Bush “read my lips” moment.
By making an “ironclad” NO TAX increase pledge, Malloy joins the Republican candidates in assuring that the people of Connecticut must live with a tax system that crushes the middle class while coddling the rich.
4-30-14: Post-election state budget deficit projected to be an incredible $1.4 billion
As Wait, What? readers have been reading for months, the Malloy administration has been painting a rosy picture of Connecticut’s state budget situation thanks to the unparalleled use of budget gimmicks and inflated revenue estimates.
Readers have been repeatedly informed that Malloy’s irresponsible approach to budgeting would leave Connecticut with a $1 billion state budget deficit in each of the three years following the November election.
Based on the latest revenue projects, yesterday’s Wait, What? post increased that projected budget deficit to at least $1.2 billion and this afternoon, the Malloy administration, along with the General Assembly’s Office of Fiscal Analysis, announced that the person who is elected to be governor in November will face a budget deficit of close to “$1.4 billion or 7.4 percent of annual operating costs.”
And the list of articles warning about the fiscal realities facing the state goes on and on and on.
Whether you read Keith Phaneuf’s pieces in the CT Mirror or the news analysis and commentary pieces here at Wait, What?, the message has been the same….Governor Malloy and his administration have been lying to the votes of Connecticut.
And now, months after the campaign is over and just weeks before Malloy presents his 2015 state budget proposal, the governor’s budget office finally admits – Connecticut is facing a budget crisis well in excess of $1 billion.
Campaign Finance, Corporate Welfare, Democratic State Central Committee, Gubernatorial Election 2014, Malloy, State Elections Enforcement Commission Campaign Finance Reform, Democratic State Central Committee, Gubernatorial Election 2014, Malloy, State Contractors, State Elections Enforcement Commission
The driving force behind Connecticut’s successful effort to reform its campaign finance system ten years ago was the revelation that disgraced Governor John Rowland had used his position to solicit gifts and campaign donations from state contractors and others who directly benefited from the expenditure of taxpayer funds.
Following its passage in 2005, Connecticut’s new campaign finance law was heralded as one of the strongest in the nation.
Putting aside the way the new law unfairly treated third party candidates, Connecticut’s lawmakers passed, and Governor Jodi Rell signed, a sweeping piece of legislation that systematically outlawed state contractors from making campaign donations to benefit a political candidate.
Whereas John Rowland’s campaign finance reports were filled with the names of major state contractors such as the Tomasso Brothers Corporation, the Gilbane Company and the Manafort Brothers, as a direct result of Connecticut’s landmark campaign finance reform legislation, every governor and gubernatorial candidate after Rowland would be prohibited from accessing state contractor money.
However, as the final round of campaign finance reports are submitted for Connecticut’s 2014 gubernatorial campaign, it is becoming increasingly clear that when it came the prohibition on state contractor donations, Governor Dannel Malloy and his political operation fundamentally violated the spirit of Connecticut’s campaign finance law and, quite possibly, the letter of the law as well.
As has been widely reported, in addition to collecting the $6.5 million taxpayer funded check from the State Elections Enforcement Commission, the Malloy campaign funneled at least $5.1 million into the Connecticut Democratic State Central Committee’s “Federal Account,” where a significant portion of those funds were used for the exclusive benefit of Malloy’s campaign for re-election.
A review of the list of those who donated that $5.1 million includes dozens of state contractors including the some of the very companies associated with John Rowland’s downfall, including the Tomasso Brothers Corporation, the Gilbane Company, the Manafort Brothers and others whose campaign donations tarnished Connecticut’s reputation and sent a sitting governor to prison.
The role state contractor donations played in the Malloy campaign has received a fair amount of media coverage, such as Jon Lender’s investigative series in the Hartford Courant’s reporting on how top executives at Northeast Utilities donated more than $50,000 to benefit Malloy’s campaign. The head of NU instructed subordinates that they could support Malloy by making their checks out to the Connecticut Democrat’s “Federal Account.” (See details about the NU story via NU Chief Asks Subordinates To Support Malloy By Giving To Democratic Party and Election Agency Probes Legality Of NU Chief’s Solicitation For Malloy.) The latest campaign reports indicate that NU officials helped Malloy by donating at least $56,750 to that Democratic account, as instructed.
But the full extent of the Malloy campaign unethical use of state contractor donations goes well beyond the Northeast Utilities example.
HAKS Engineering of New York collected more than $18 million from the State of Connecticut since Dannel Malloy took office. Some of their work was part of a new contract to inspect overhead power lines on the New Haven Line of Metro North. A May 2014 article in the CT Mirror reported that executives of HAKS Engineering had donated $45,000 to the account the Malloy campaign was using to sidestep Connecticut’s law prohibiting state contractors from giving funds to benefit Connecticut candidates.
In fact, by the end of the 2014 campaign cycle, HAKS executives and their families, along with their related companies, had actually donated about $80,000 the Democrat’s “Federal Account,” including $32,000 from Hasam Ahmad and his wife, $10,000 from Shahida Akhtar, $10,000 from Elliot Gene Sander, and donations in the range of $5,000 or more from other HAKS employees including Franco Balassone, Mahmood Mohammed, Louis Torelli and Mubbashir Rahman.
Another example of the Malloy campaign collecting campaign donations from those who have directly benefited from the Malloy administrations actions is Winstanley Enterprises, the lead developer of New Haven’s Downtown Crossing. The publicly funded project is now home to Alexion Pharmaceuticals, the company that received a $51 million corporate welfare package from the Malloy administration to move to that property. Adam and Carter Winstanley each donated to $20,000 to the Democrat’s Malloy oriented “Federal Account,” while David Winstanley pitched in $10,000 for a total of at least $50,000 from the Winstanley family.
Another key source of campaign funds for the Malloy operation was the law firm of Pullman & Comley whose attorney provided more than $45,000 during the recent campaign. The Bridgeport based law firm has snagged a series of extremely lucrative contract with various state agencies including the Attorney General’s Office, the State Treasurer’s Office, the University of Connecticut, the State Airport Authority and the Department of Transportation. Since Malloy became governor, the firm has collected in excess of $2.7 million and that doesn’t even count the money billed in this fiscal year.
Yet another example is the one the CT Mirror noted in their May 2014 article where they wrote, “The Simon Konover Company, which the state pays $4.7 million annually to rent 55 Elm St. in Hartford, is up to $51,000 in donations, with $30,000 from three executives last month on top of $21,000 last year. Its tenants include the attorney general, treasurer and controller.” As the Malloy’s re-election campaign came to a close, the total raised from those directly associated with the Simon Konover Company reached $71,000.
And what about those big construction companies that were so generous to John Rowland. The Malloy operation also managed to collect donations from officials the Tomasso Brothers Corporation, the Gilbane Company and the Manafort Brothers Company. The Manafort Brothers Company led the pack with $22,000 in donations.
Check back tomorrow for even more examples of the role state contractors inappropriately played in Malloy’s re-election effort.
American Federation of Teachers, Campaign Finance, Charter Schools, Malloy, Randi Weingarten, State Board of Education, Stefan Pryor, Steve Perry Capital Preparatory Magnet School AFT, AFT-CT, Capital Prep Charter School, Charter Schools, Gubernatorial Election 2014, Malloy, Steve Perry, Weingarten
Less than twelve hours after Governor Dannel Malloy took the stage to declare victory on Election Night 2014, Commissioner of Education Stefan Pryor and Malloy’s political appointees on the State Board of Education met to unanimously endorse a proposal to open eight new charter schools in Connecticut.
A CT Mirror article at the time entitled “State education board wants to open eight new charter schools” reported that while the State of Connecticut faces a $1.4 billion projected budget deficit for next year, “The State Board of Education is asking the state for $11 million to fund eight new charter schools to open over the next two school years…The request, put forward by Education Commissioner Stefan Pryor and approved unanimously by the state board…”
The CT Mirror added that, “Allan B. Taylor, chairman of the 13-member state panel, said expanding school choice for students makes sense.”
The Hartford Courant covered the story as well noting;
Of the eight new charters proposed to open over the 2015-16 and 2016-17 fiscal years, two proposals were approved by the board at a lengthy meeting in April amid much testimony for and against new charter schools.
The charters already approved to open in 2015-16 include Stamford Charter School for Excellence and Capital Prep Harbor School in Bridgeport. Those proposals, however, are contingent on the availability of funding.
After funding for Steve Perry’s proposed Bridgeport charter school, along with money for seven others charter schools, won the full support of the State Board of Education, Melodie Peters, the President of the Connecticut Federation of Teachers, submitted a hard-hitting commentary piece to the CT Mirror entitled, “Plan for more charter schools flawed in many ways.”
Peters, one of Malloy’s biggest supporters began her article by saying, “The state education department commissioner’s proposal last week to hand over more public education resources to privately managed charter schools deserves an ‘F’ as both ‘incomplete’ and tone deaf.”
“Now is not the time to ask taxpayers for another $21 million on an experiment whose record of ensuring a quality education for all has yet to be demonstrated.
It has been just six months since the scandal involving the charter management outfit Family Urban Schools of Excellence (FUSE) and the schools it operated in Hartford and Bridgeport made headlines. Recall that the extent of the alleged corruption and nepotism quickly led to a Federal Bureau of Investigation probe of FUSE and its affiliated Jumoke schools that today is still ongoing.”
Having told members that Lt., Governor Nancy Wyman would be Malloy’s point person on education in Malloy’s second term, Peters added,
“In August, the Malloy-Wyman Administration rightly responded to the crisis by ordering a thorough review of the department of education’s policies governing charter management companies. The department quickly agreed to changes that echo what parents, educators, and advocates have been urging for years: charters should be held accountable to the same standard as traditional public schools.”
The AFT -CT President went on to blast Pryor’s decision to seek funding for eight more charter school saying, “The state should not green-light more charters or expand their reach without first verifying that education department oversight of charters has actually improved.
Of the various issues associated with President Peters’ “blistering attack” on the decision to approve Pryor’s proposal for eight more charter schools, perhaps the most interesting is that Peters completely and utterly failed to mention that the newest member of the State Board of Education, Meriden Federation of Teachers President Erin Benham, voted IN FAVOR of the resolution to fund eight new charter schools.
In a political move to reward the AFT-CT for ramming through an endorsement of Dan Malloy, without even granting the other candidates [like myself] the opportunity to fill out a candidate questionnaire, meet with the AFT-CT PAC or address the AFT-CT Board of Directors, Malloy announced on August 21, 2014 that he was taking the unprecedented step of appointing Meriden AFT President Erin Benham to a four year position on the State Board of Education.
As the time, Peters wrote,
“We applaud the administration of Governor Dannel Malloy and Lieutenant Governor Nancy Wyman for selecting Erin Benham to serve on the State Board of Education. They have appointed a committed classroom educator and trusted labor leader with a long, successful record of direct engagement in grassroots efforts to improve schools in Meriden and across Connecticut.
“The SBOE, as well as the state’s education department, will greatly benefit from Erin’s experience in Meriden Public Schools. There, she and her fellow educators have proven that collaboration — not confrontation — is the way to form a productive working partnership with their district’s administration.
“Erin will bring tremendous value to the board with real-world teacher-student, educator-parent and labor-management experience. I have seen firsthand Erin’s passion for her vocation, and I have no doubt she will make a significant contribution to the board’s mission.
“We expect Erin to ensure that the voices of educators are heard and respected, and to play a role in helping to shape policy in all our state’s schools.
“We congratulate Erin on her appointment and look forward to her service on the SBOE throughout her four-year term.”
Two weeks later, American Federation of Teachers President Randi Weingarten came to Connecticut to endorse Governor Dannel Malloy for re-election, despite the fact that Malloy was, and is, the only Democratic governor in the nation to propose doing away with tenure for all public school teachers and unilaterally repealing collective bargaining rights for teachers in the poorest school districts in Connecticut, including some of the teachers who worked in Meriden.
And to drive home the special relationship between the AFT and Malloy – and Malloy and the AFT – AFT President Weingarten, AFT-CT President Peters and Malloy started their day with a tour and press conference at a Meriden public school, with none-other-than the newest member of the State Board of Education, Meriden AFT President Erin Benham.
Yet exactly sixty-one days later, Erin Benham, the teacher who Peters promised would, “ensure that the voices of educators are heard and respected, and [who would] play a role in helping to shape policy in all our state’s schools,” joined Malloy’s other political appointees on the day after the election to vote in favor of diverting millions of dollars to even more privately run, publicly funded charter schools.
In her commentary piece a week after the vote, AFT-CT Peters wrote,
“Another unanswered question is why we aren’t investing education resources in community schools that will educate all children, instead of cherry-picking students to boost standardized test scores. An investigation by Reuters in 2013 found charters across the country imposing “significant barriers” that result in “skimming the most motivated, disciplined students and leaving the hardest-to-reach behind….Wouldn’t we all be better served investing our tax dollars in traditional neighborhood schools that do not exclude our special education, ELLs, and children with behavioral disorders?”
And AFT President Peters concluded her commentary piece with the observation, “And until the department can demonstrate that it can, the State Board of Education should deny the outgoing commissioner’s request.”
Over the course of Malloy’s 2014 campaign for re-election, the American Federation for Teachers Federal Political Action Committee donated $10,000 to the Committee Democratic State Central Committee “Federal Account,” the fund that the Malloy campaign used to launder lobbyist, state contractor and political action committee funds into a program to assist the Malloy campaign.
In addition, the American Federation of Teachers Federal Political Action Committee threw in $600,000 to the Democratic Governor’s Association’s $5.7 million Independent Expenditure campaign to support Malloy’s re-election.
But putting aside, for the moment, AFT President Melodie Peters’s anti-charter school editorial of November 17, 2014, when the real vote on the motion to adopt the Malloy administration’s proposal to fund eight more charter schools was taken, it passed the State Board of Education unanimously….with the support of AFT’s representative along with Chairman Allan Taylor, Vice Chair Theresa Hopkins-Staten, Charles Jaskiewicz, Patricia Keavney-Maruca, Maria Mojica and Joseph Vrabely.
That is a lot of teacher’s money for an investment that appears to be ending in disaster.
Some would even call the whole thing yet another Wait, What? moment.
Foley, Gubernatorial Election 2014, Joe Visconti, Malloy, Pelto Foley, Gubernatorial Election 2014, Malloy, Pelto, Visconti
With Malloy and Foley having now spent in excess of $30 million to destroy each other and mislead voters, the crushing weight of the corrupt, entrenched and out-of-touch political system has claimed another victim. Earlier today, petitioning candidate Joe Visconti has dropped out of the race of governor and endorsed Tom Foley. If you feel comfortable with the major party candidates, I urge you to vote accordingly on Tuesday, Election Day. However, for those who believe we deserve better or want to send a message to the power elite, I invite you to darken in the bubble that says Write-in Candidate for Governor and then write in the name Pelto or Pelto/Murphy.
“Always vote for principle, though you may vote alone,
you will cherish the sweetest reflection that your vote is never lost.”
— John Quincy Adams
When assessing the last four years and examining the positions taken by Malloy and Foley during this year’s gubernatorial campaign, the truth is that no matter who wins on Tuesday, the burden to do what is right for the people of Connecticut will rest in the hands of a Democratic legislature. They will either rise to the occasion or they will not. So for those mulling over whom to vote for… If you believe that our elected officials need to stop their unwarranted assault on teachers and the teaching profession, feel free to write in the name Pelto. If you believe the state must derail the Common Core and its unfair, expensive and discriminatory Common Core Standardized Testing Scheme, feel free to write in the name Pelto. If you believe we must push back the corporate education reform industry that seeks to privatize our public schools and replace them with unaccountable charter schools that refuse to educate their fair share of Latinos, students who face language barriers and children who require special education assistance, feel free to write in the name Pelto. If you believe our government must stop coddling the rich and reduce the tax burden on the middle class by requiring the wealthy to pay their fair share of taxes, feel free to write in the name Pelto. If you believe our state must put an end to the outrageous use of corporate welfare and stop giving our scarce taxpayer resources to wealthy corporations, feel free to write in the name Pelto. If you believe that those elected to office must settle the critically important CCEJF v. Rell school funding lawsuit and develop a fair and constitutional school funding formula that will end the pressure on local property taxpayers, feel free to write in the name Pelto. If you believe the time has come to demand that those in office must stop using budget gimmicks and adopt a fair, honest and effective state budget that truly reduces the long-term debt that will destroy our children’s opportunities, feel free to write in the name Pelto. If you feel that we must rid the political system of tainted campaign money and hold those who have violated the spirit and law of Connecticut’s campaign finance laws accountable for their actions, feel free to write in the name Pelto. If you believe our citizens deserve access to an affordable system of public colleges and universities and you oppose what have been the deepest cuts in history to UConn, CSU and our community colleges over the past four years, feel free to write in the name Pelto. Or if you simply feel that enough is enough and that our political leaders have lost their way, feel free to write in the name Pelto for Governor. Because sometimes standing up and being counted is what is most important. And if you intend to write in the name Pelto, please take a moment over the next 48 hours to urge your friends, families, colleagues and neighbors to do the same.
Paid for by Pelto 2014, Ted Strelez, Treasurer, Christine Ladd, Deputy Treasurer, Approved by Jonathan Pelto
Campaign Finance, Corporate Welfare, Gubernatorial Election 2014, Malloy Campaign Finance Reform, Corporate Welfare, Gubernatorial Election 2014, Malloy
With Election Day almost upon us, Governor Dannel “Dan” Malloy used the past week to continue his massive “Corporate Welfare” Program.
On Wednesday, Malloy delivered a $10 million dollar Corporate Welfare Check, on behalf of Connecticut’s taxpayers, to General Dynamic’s Electric Boat division to help the company renovate a building in Groton that had been vacated by Pfizer.
While most Connecticut taxpayers are still struggling under the weight of the Great Recession, General Dynamics is on track to pull in another $32 billion in revenue this year. Thanks to the nation’s never-ending war effort, the defense giant has generated revenues in excess of $294 billion over the past ten years. The company is doing well enough that they even paid their new CEO $18.8 million last year. (For those that are keeping track, that would be nearly double what Connecticut taxpayers handed the company this week.)
On Thursday, the company receiving Malloy’s taxpayer funded largess was Fuel Cell Energy Inc. Fuel Cell Energy only collected $188 million in revenues last year, but that was up from just $70 million in 2010. Malloy is giving the company $20 million in taxpayer funds so that they can expand their Torrington facility rather than have to rely on private investors.
And on Friday, Malloy was in Danbury, this time with a Corporate Welfare Check for $32.5 million to help Praxair fund their new corporate headquarters.
Praxair’s revenue last year was about $12 billion, enough to pay their CEO a salary and compensation package of 26.5 million, “earning” him the #33 spot on Forbes list of highest paid executives. Praxair’s CEO has been paid more than $70.1 million over the past five years.
Of note is the fact that while Malloy was giving away taxpayer funds, Connecticut’s Office of Fiscal Analysis announced that the Malloy administration is overspending this year’s state budget allocation by at least $88 million. It is grim news and reflects the reality that Connecticut will be facing a major budget deficit next year.
But the fiscal problems facing that state didn’t deter Governor Malloy from giving away $62.5 million more in corporate welfare, and that doesn’t even count the tens of millions of dollars in other checks he handed out this week to private corporations.
In return for all this money, Malloy says that Electric Boat and Praxair have promised to create a total of 330 jobs over the next five years, while Fuel Cell Energy has agreed to create 160 new positions and keep those jobs in place for at least 4 years.
Meanwhile, on the campaign finance front, it is undoubtedly a coincidence that all three of these financially successful companies have generously donated to the Connecticut Democratic Party’s “federal account.”
The campaign contributions from General Dynamics, Praxair and Fuel Cell Energy are just a tiny fraction of the $4.3 million that Malloy and his political operation have raised from state contractors, people who have benefited directly from Malloy’s corporate welfare program, federal Political Action Committees and other wealthy individuals.
While many believe that state law clearly prohibits these funds from being spent to benefit a state-level campaign, Malloy and his campaign have been using the Democratic Party’s “federal account” to pay for his campaign mailings and other campaign expenses, allowing him to augment the $6.5 million Malloy received in public funds from the Connecticut Public Financing Program.
It all leaves one wondering what the “True Capitalists” would think of this world in which public funds are used to subsidize private activities that help ensure corporate officers and investors can get a better return on their private investments?
Of course, as Haruki Murakami, one of my favorite authors has observed,
“Waste is the highest virtue one can achieve in advanced capitalist society.”
3rd Party Challenges, Foley, Gubernatorial Election 2014, Joe Visconti, Malloy Foley, Gubernatorial Election 2014, Malloy, Visconti
Here we are, a week to go until Election Day and despite the fact that at least 50% of Connecticut voters have a negative opinion of Governor Dannel “Dan” Malloy, he may very well be on the verge of winning re-election with 43% of the vote.
With the “finish line” in sight, the news is full of reports that Republicans are continuing to condemn third-party candidate Joe Visconti for being a “spoiler.” These “political leaders” are demanding that Visconti get out of the race.
This, while Malloy has been uncharacteristically going out of his way to complement Visconti for his willingness to stand up and be honest about his beliefs.
Despite Malloy’s apparent public “endorsement” of Visconti’s 3rd party challenge, my recent blog post informing people how they can write in my name for governor has generated a new round of emails and nasty comments from Malloy supporters blasting me for threatening to be a “spoiler.”
All in all it is a wonderful and terrible commentary about the shallowness of principle that guides our establishment political parties and those who blindly follow their lead.
It would appear that as far as leadership of the Democrats and Republicans are concerned, a spoiler is anyone who has the audacity to utilize their fundamental American right to participate in our democracy — if that person might possibly reduce the number of votes their establishment candidates might otherwise get.
Connecticut’s Ralph Nader once observed that the word spoiler is a “politically bigoted term.” Nader went on to note that those who condemn 3rd parties believe that,
“All of us who think that the country needs an infusion of freedom, democracy, choice, dissent should just sit on the sidelines and watch the two parties own all the voters and turn the government over to big business?”
Or perhaps the outspoken populist, Jim Hightower, put it even better when he wrote,
“So now is the time, more than ever, for those who truly value all the principles of democracy especially including dissent, to be the most forceful in speaking up, standing up and speaking out.”
Here is a message for those who support Malloy or Foley, but claim to believe in democracy…your hypocrisy is showing.
Dissent does not undermine democracy. In fact, dissent is essential to democracy.
Or as Frederick Douglas said,
“Those who profess to favor freedom and yet depreciate agitation, are people who want crops without ploughing the ground; they want rain without thunder and lightning; they want the ocean without the roar of its many waters. The struggle may be a moral one, or it may be a physical one, or it may be both. But it must be a struggle. Power concedes nothing without a demand. It never did and it never will.”
Instead of blaming Visconti or myself for their lack of public support, Malloy and Foley should be looking in the mirror and contemplating the fact that significantly more voters dislike them than like them.
Connecticut Education Assocation, Gubernatorial Election 2014, Malloy, Teacher Evaluations, Teachers CEA, Gubernatorial Election 2014, Malloy, Teacher Evaluations, Teachers
Meanwhile, why hasn’t Malloy announced that, if re-elected, he will de-couple the state’s teacher evaluation system from the unfair, inappropriate and ineffective standardized testing scheme
Many of Connecticut’s active and retired teachers recently received a “fact” sheet urging them to support Governor Dannel “Dan” Malloy’s bid for re-election.
While the “EXAMINE THE FACTS” document failed to highlight the reality that Governor Malloy actually proposed CUTTING funding for teacher health care, in an attempt to persuade teachers to vote for Malloy, the “fact” sheet claimed that Malloy is the “First governor in Connecticut’s history to annually fully fund teacher pensions during his term in office and guarantee full funding in the future.”
Let’s be honest – if Governor Malloy had unilaterally taken steps to “fully fund teacher pensions” and “guarantee full funding in the future,” that would have been a powerful reason for teachers to consider voting for him, but the truth is far from what Malloy’s supporters are suggesting.
The state law mandating full funding of teacher pensions, which were made iron-clad through “bond covenants” with Wall Street was adopted in 2007, four years BEFORE Dannel Malloy became governor.
In 2007, after persuasive lobbying by the Connecticut Education Association, Republican Governor Jodi Rell and the Democratic majority in the General Assembly approved a plan to borrow $2 billion to shore up Connecticut’s underfunded teacher pension system.
The legislation required that, “for each fiscal year in which the bonds are outstanding [up to 30 years], the act automatically appropriates the actuarially required annual state contribution to the Teacher’s Retirement Fund (TRF).”
As part of the bond covenants with the Wall Street investors, that state of Connecticut was prohibited from repealing that language.
Yes Virginia, there is a power greater than the democratically-elected government of Connecticut and it is called Wall Street.
The EXAMINE THE FACTS document makes it seem that Governor Malloy made the decision to fully-fund the Teacher Retirement Fund because he was “committed” to teachers.
That is simply not true.
Connecticut State Government made the necessary payments to fully fund the teachers retirement system because it had signed a contract with Wall Street investors in 2007 that required that those payments be made.
We know that the Democrat’s mantra is that Tom Foley is dangerous, despite the fact that he will be dealing with a Democratic General Assembly…But misleading or lying about Malloy’s record is hardly an effective way to persuade teachers to cast their vote for Malloy.
You can read the “fact” sheet here – http://www.cea.org/issues/news/2014/sep/29/pdf/Malloy-Foley-Examine-the-Facts.pdf
Meanwhile, why hasn’t Malloy announced that, if re-elected, he will de-couple the state’s teacher evaluation system from the unfair, inappropriate and ineffective standardized testing scheme.
American Federation of Teachers, Connecticut Education Assocation, Gubernatorial Election 2014, Teacher Tenure, Teachers AFT-CT, CEA, Collective Bargaining, Gubernatorial Election 2014, Malloy, Teacher Tenure, Teachers
As part of its ongoing effort to persuade Connecticut teachers to support Governor Malloy’s bid for re-election, the CEA has sent out information to its members including a “Fact Sheet” called EXAMINE THE FACTS.
In addition, the cover of this month’s CEA Advisor magazine reads;
EXAMINE THE FACTS;
A better direction for students, teachers and public education
A Better direction for education funding, pensions and collective bargaining.
See CEA Flyer – EXAMINE THE FACTS AND CEA Advisor:
The lead article begins,
“Educators are truth tellers. They enlighten. They inform … we like to think our Association plays a similar function for members like you.”
While it is fair to say the Republican gubernatorial candidate Tom Foley’s position on the issue of collective bargaining is extremely troubling and worthy of opposition, it is vitally important that voters been given the truth, especially by those who support a particular candidate.
In this case, the CEA statement on behalf of Governor Malloy is as follows:
MALLOY: Supports teachers’ rights to collectively bargain and negotiate contracts, benefits, and working conditions
Actually that isn’t really the truth:
Governor Dannel “Dan” Malloy remains the only incumbent Democratic governor in the United States to have proposed doing away with tenure for all public school teachers and repealing collective bargaining for teachers in the poorest school districts.
His plan was to replace the due process system called tenure with a series of certification contracts that would be renewed if teachers managed to prove their competency using an unfair and inappropriate set of standards.
While it is true that Malloy told a CEA forum last month that he did support teachers’ rights to collectively bargain and negotiate contracts, benefits, and working conditions, Malloy HAS NEVER publicly renounced his 2012 proposal to eliminate tenure for all public school teachers – the single most important working condition for teachers.
In fact, in an earlier candidate debate with Tom Foley, Malloy was asked about his infamous statement that a teacher need only show up for four years to get tenure.
In response Malloy said,
“I should admit that was bad language. It wasn’t about them. It was about tenure. … I shouldn’t have said it. I apologize for saying it.’”
So while telling the CEA that he supports collective bargaining, Malloy told that public that his idiotic and insulting statement that teachers “need only show up” to get tenure, wasn’t about teachers, it was about tenure.
That is hardly a successful effort on Malloy’s part to say that he believes in the important role of tenure.
But perhaps even more important is Malloy’s failure to publicly retract his effort to repeal collective as part of his Corporate Education Reform Industry proposal in 2012 (Senate Bill 24).
Section 17 of Senate Bill 24 read,
“(F) The provisions of sections 10-153a to 10-153n [Connecticut’s Collective Bargaining law], inclusive, shall not apply to any teacher or administrator who is assigned to a commissioner’s network school…”
The language meant that collective bargaining SHALL NOT APPLY to teachers working at turnaround schools.
Thankfully the outrageous, anti-union, anti-collective bargaining language was stripped out of the bill by the Democratic legislators…just as they would if Tom Foley tried to introduce anti-union, anti-collective bargaining legislation.
As the leadership of the CEA, AFT and other public employee unions continue to campaign for Dannel Malloy, they (or Malloy) still have not faced that fact that:
No Connecticut Governor – Democrat, Republican or Independent – has ever proposed unilaterally repealing collective bargaining for a group of public employees.
The truth is that Dan Malloy proposed unilaterally repealing collective bargaining for teachers working in the poorest schools in Connecticut and to this day he has NEVER publicly retracted that proposal or apologized for his union busting effort.
The CEA leadership is absolutely correct that teachers and all voters should EXAMINE THE FACTS.
People may want to vote against Foley for his anti-worker position, but Malloy has a long way to go before he has earned the vote of Connecticut’s teachers or state employees.
The question remains…
If Malloy really wants teachers to support him, why hasn’t he clearly endorsed the concept of teacher tenure and made a public statement that he was wrong to try and eliminate tenure and repeal collective bargaining in his 2012 Corporate Education Reform Industry legislation.
In the coming days we’ll take a look at some of the others issues presented as “facts” in the EXAMINE THE FACTS flyer teachers have been receiving.
Campaign Finance, Democratic Legislators, Democratic State Central Committee, Gubernatorial Election 2014, Malloy Campaign Finance Reform, Democratic Legislators, Democratic State Central Committee, Gubernatorial Election 2014, Malloy
In recent weeks, many of us have received the emails or invitations from the Connecticut Democratic State Central Committee urging, pleading and cajoling us to give them money so that they can fight off the “big” money that is pouring into Connecticut to attack Dannel “Dan” Malloy and his re-election campaign.
The display has been nothing short of sanctimonious – otherwise known as “pretending to be morally better than other people” or being “hypocritically pious or devout.”
Readers may recall the various Wait, What? blog posts over the past three years about how Connecticut’s once nationally-recognized campaign finance reform law became nothing more than a joke as a result of the loopholes that were proposed by Governor Malloy and passed by the Democrats in the Connecticut General Assembly.
“Big money,” “tainted money,” “special interest money,” is now pouring into Connecticut, in large part, because of Malloy’s effort to corrupt Connecticut’s campaign finance system in order to allow for the very mechanisms that he and Tom Foley are now using to augment the $6.2 million in taxpayer funds that each of them received to pay for their 2014 gubernatorial campaigns.
For background on the issue, read the September 15, 2014 Wait, What? post entitled, “Three cheers for campaign finance corruption in Connecticut!”
Governor Dannel “Dan” Malloy has deposited his check for $6.2 million from the State’s Public Finance System.
As a result of Connecticut’s landmark 2005 campaign finance reform bill, in return for raising $250,000 in contributions of under $100, Malloy (and the Republican nominee for governor) have each received $6.2 million in public funds to pay for their gubernatorial campaigns.
The original concept, which passed following the conviction of Governor John Rowland in 2005, was that in return for a multi-million dollar campaign donation from the public, candidates would agree to forgo private funds raised from state contractors, lobbyists, political action committees, and the wealthy and other special interest.
But that was before Malloy and the Democrats in the Connecticut General Assembly torpedoed the most important elements of the law.
Now, in addition to the $6.2 million in public funds, Malloy and his political operatives have collected at least $3.5 million for his campaign into the Democratic State Central Committees “federal” account, much of it from state contractors, lobbyists, political action committees and the wealthy. The political maneuver was made possible thanks to a proposal Malloy and the Democrats pushed through in 2013.
In addition, a “separate” political action committee called Connecticut Forward, has already raised $2.5 million to run ads in support of Malloy and against his opponent.
Now, as the Hartford Courant’s Jon Lender is reporting in “Democrats Press Controversial Attempt To Use Federal Account To Fund Malloy’s Re-Election,” and Christine Stuart is explaining in Democratic Party Wants To Use Federal Account For Malloy Mailer, Malloy and the Democrats are taking their campaign finance charade one step further.
The Courant reports:
The state Democratic Party is pushing an already controversial campaign-financing issue to a new level, asking the Federal Election Commission to comment on the legality of the party using money from a federal campaign account to pay for a planned campaign mailing asking voters to re-elect Gov. Dannel Malloy.
And CTNewsJunkie explains Malloy ruse with:
State election law prohibits state contractors from contributing to state party accounts or statewide candidates. But state contractors are not prohibited from giving money to the party’s federal account, which pays for some administrative costs and federal campaign activities.
Last month, state election regulators were forced to rule that an email solicitation from the head of Northeast Utilities in 2013 didn’t violate Connecticut election law even though it used Malloy’s accomplishments to solicit money for the Democratic Party’s federal account.
The SEEC concluded that it was “offensive and disturbing and violates the spirit and intent of the Connecticut state contractor ban,” but there was nothing in the state law that made the more than $50,000 in contributions illegal.
The decision to pass Connecticut’s campaign finance reform law in 2005 and give candidates public funds to run their campaign was based on the requirement that candidates would not be able to accept money from people doing business with the state or others whose vested interest was to “buy” themselves public policy.
But instead, Malloy and the Democrats passed loopholes in the campaign finance laws that they sought to benefit from by being able to divert money from companies that do business with the state into the Democratic Central Committee’s Federal Account.
And now, Malloy wants to go even further and use that tainted money to directly pay for his campaign mailings.
Malloy’s blatant disregard for campaign finance reform is a perversion of everything the Democrats claim to stand for when it comes to getting dirty money out of politics and overturning the disastrous Citizens United ruling in which the United States Supreme Court determined that, in essence, defines corporations as people for the purposes of being able to buy elections.
And who are some of the “people” who donated to the Connecticut Democratic Party’s “Federal Account” that Malloy is now trying to use for his campaign?
In addition to numerous corporations and individuals who directly benefit from having state contracts are the following political action committees;
AETNA INC. POLITICAL ACTION COMMITTEE — $5,000
AT&T INC. FEDERAL POLITICAL ACTION COMMITTEE (AT&T FEDERAL PAC) — $5,000
BANK OF AMERICA CORPORATION STATE AND FEDERAL PAC — $5,000
BOEHRINGER INGELHEIM USA CORPORATION POLITICAL ACTION COMMITTEE — $7,500
CBS CORPORATION POLITICAL ACTION COMMITTEE — $1,000
CIGNA CORPORATION POLITICAL ACTION COMMITTEE — $5,000
COMCAST CORPORATION & NBCUNIVERSAL POLITICAL ACTION COMMITTEE – FEDERAL — $5,000
COMPUTER SCIENCES CORPORATION PAC — $5,000
COZEN O’CONNOR POLITICAL ACTION COMMITTEE — $5,000
DEMOCRATS FOR EDUCATION REFORM — $5,000
DOMINION RESOURCES, INC. POLITICAL ACTION COMMITTEE – DOMINION PAC —$2,000
GENERAL DYNAMICS CORPORATION POLITICAL ACTION COMMITTEE (GDC PAC) — $2,500
GENERAL ELECTRIC COMPANY POLITICAL ACTION COMMITTEE (GEPAC) — 6,000
GHC ANCILLARY CORPORATION POLITICAL ACTION COMMITTEE — $3,000
MINERALS TECHNOLOGIES INC. POLITICAL ACTION COMMITTEE (MTI PAC) —$2,500
NATIONAL CONFECTIONERS ASSOCIATION OF THE UNITED STATES, INC. POLITICAL ACTION COMMITTEE — $2,500
NESTLE WATERS NORTH AMERICA INC. PAC — $1,000
NORTHEAST UTILITIES EMPLOYEES’ POLITICAL ACTION COMMITTEE-FEDERAL —$2,500
PFIZER INC. PAC — $10,000
PITNEY BOWES INC. POLITICAL ACTION COMMITTEE — $3,500
PRAXAIR, INC. POLITICAL ACTION COMMITTEE — $5,000
PURDUE PHARMA INC. POLITICAL ACTION COMMITTEE (PURDUE PAC) — $5,000
SPECTRA ENERGY CORP POLITICAL ACTION COMMITTEE (SPECTRA-DCP PAC) —$2,500
SYNERGY PAC — $5,000
THE HARTFORD FINANCIAL SERVICES GROUP, INC. PAC (AKA THE HARTFORD ADVOCATES FUND) — $10,000
THE PHOENIX COMPANIES, INC. – PAC FEDERAL — $2,500
THE TRAVELERS COMPANIES INC. PAC — $10,000
THE WALT DISNEY PRODUCTIONS EMPLOYEES PAC — $5,000
THERMO FISHER SCIENTIFIC INC. PAC — $2,000
UNITEDHEALTH GROUP INCORPORATED PAC (UNITED FOR HEALTH) — $10,000
WAL-MART STORES INC. PAC FOR RESPONSIBLE GOVERNMENT — $5,000
WALGREEN CO PAC — $2,500
WEBSTER BANK PAC – FEDERAL — $2,500
WELLPOINT, INC. WELLPAC — $2,000
XEROX CORPORATION POLITICAL ACTION COMMITTEE (XPAC) — $2,500