Malloy gives Climate Change Denier $35 million in taxpayer funded corporate welfare

Despite Connecticut’s massive and growing fiscal crisis, Governor Dannel Malloy’s corporate welfare program continues to spin out of control.  This time the recipient of the Malloy administration’s taxpayer funded give-a-way program is another massive, extraordinarily profitable hedge fund, a company headed by a multi-millionaire corporate executive who is a climate change denier.

Last Wednesday, as the nation and its citizens reeled from the results of Election Day, Governor Dannel Malloy announced his decision to give Greenwich-based AQR Capital Management $35 million dollars in Connecticut taxpayer funds.

AQR Capital Management is one of the nation’s largest hedge funds, with assets of over $159 billion. The company’s CEO, Cliff Asness, is known for his Republican, Libertarian and right-wing politics, including his consistent denial that climate change is a problem facing the world.

As the Hartford Business Journal reported in, Greenwich firm to expand with $35M in state loans, grants,

Gov. Dannel P. Malloy on Wednesday announced the company’s participation in the Department of Economic and Community Development’s First Five program, providing up to $28 million in loans and up to $7 million in grants to support the firm’s $72 million expansion project. AQR Capital will retain 540 jobs as it creates new ones, Malloy said.

Since the Malloy administration’s corporate welfare program is funded through state borrowing, the $35 million gift to AQR Capital Management will cost taxpayers well in excess of $40 million.

Making the corporate subsidy all the more outrageous, AQR’s top executive has been an extremely controversial figure in the business world.

Addressing Cliff Asness’ statements, a Fortune Magazine article published on March 11, 2015 and entitled, Top hedge fund manager: Global warming isn’t a danger, reported;

One of Wall Street’s most successful hedge fund managers is once again wading into the climate change debate. His conclusion: It’s not as big of a problem as some suggest.

The hedge fund executive went on to suggest that, “based on the current pace of global warming, it will take another 500 years before the changes become a real problem.”

Connecticut crippling state debt is already making it impossible to maintain vital services and will leave future generations with impossibly high debt payments.

In fact, Governor Malloy’s unprecedented use of corporate welfare will cost Connecticut taxpayers well in excess of $1 billion and his fiscally irresponsible policies have already undermined Connecticut state government’s ability to meet its obligations in the years and decades to come.

Careening down the wrong path as Education Reform Industry spends more money to buy public policy

Connecticut has become a striking example of what is truly wrong with the way government and public policy functions in the United States today.

Rather than using the state motto, “Qui transtulit sustinet – He who is transplanted still sustains,” the Constitution State could easily shift to, “Step right up and buy your public policy here.”

And presiding over the entire farce is a governor devoted to coddling the rich, while lying to the people.

Victorious thanks to a campaign in which he repeatedly claimed there was no budget deficit, promised that he wouldn’t raise taxes or cut critical state services, Governor Dannel Malloy is now ducking a budget deficit that is skyrocketing.  Malloy’s next step will be to raid the state’s Rainy Day Fund to balance this year’s budget, or worse, he will put the massive deficit on the state’s credit card thereby dumping even more debt on the backs of Connecticut’s overly burdened middle class.

And as for next year, while the state’s fiscal situation deteriorates, Malloy’s proposed state budget includes massive and unacceptable cuts to a wide variety of state services.

Rather than offer up a plan to ensure that services are maintained by requiring the wealthy to pay their fair share in taxes, Malloy is berating legislators or anyone else who challenges the house of cards he has built.

When it comes to the budget related to public education, Malloy’s proposed budget actually REDUCES spending on public schools by well over $150 million over the next two years, the largest such cut in history.

Yet Malloy has proposed INCREASED spending on charter schools by more than 25 percent.

As if to highlight the modern system of “pay-to-play” policy making, while Malloy turns his back on Connecticut public school students, parents and teachers, the corporate education reform industry is pouring even more money into their unending quests to privatize public education and denigrate teachers.

The corporate funded New York based entity called Families for Excellent Schools has set up yet another “education reform” front group in Connecticut.  This one is called “Coalition for Every Child.”

According to the latest reports filed with the Office of State Ethics, this organization has spent over a quarter of a million dollars lobbying in just the past eight days.  The pro-Common Core, pro-Charter School group has even hired Malloy’s chief adviser, as well as Malloy’s former press secretary, to run their PR campaign in support of Malloy’s plan to divert even more scarce public dollars to charter schools companies.

Three other corporate education reform industry groups, the Connecticut Coalition for Achievement Now, Inc. (ConnCAN), the Connecticut Council for Education Reform (CCER), and Achievement First, Inc. (the charter school management company with strong ties to the Malloy administration,) have spent nearly $100,000 more in recent weeks in a lobbying program designed to persuade legislators that it is good idea for them to cut funding for their own public schools, while increasing the taxpayer subsidy for the privately run charter schools.

What are Malloy’s education reform supporters doing and saying with all their money?

The Connecticut Council for Education Reform is using its money to tell parents that the unfair, inappropriate and discriminatory Common Core Smarter Balanced Assessment Consortium test (SBAC) is a good thing even though it will label the majority of children as failures. (See: No, the Common Core SBAC test is not like a blood test.)

Meanwhile, ConnCAN and the rest of the charter school industry are using their hundreds of thousands of dollars to promote Malloy’s disgraceful budget and lobbying to stop the Connecticut legislature from pausing the development of further charter schools in the state.

Following the charter school industry’s success in preventing a charter school moratorium bill from passing the General Assembly’s Education Committee, the co-CEO and president of Achievement First Inc., the Executive Director of ConnCAN and state director for the Northeast Charter School Association all gleefully issued press releases cheering on the fact that the Malloy administration can continue its efforts to expand the number of publicly funded, but privately owned charter schools in the state.

Dacia Toll, co-CEO and president of Achievement First, Inc. the charter school management company that collects the lion’s share of the $100 million in Connecticut taxpayer funds spent on charter schools explained that, “The moratorium on public charter schools would have been a huge step backward.”

A huge step backward for the company’s bottom line that is…

While Malloy’s proposed budget actually INCREASES CHARTER SCHOOL FUNDING BY $36 million…

Malloy’s proposed budget cuts tens of millions of dollars to public schools including the following programs;

Reduces funding for the CT Pre-Engineering Program

Reduces Youth Service Bureau programs

Reduces funding for the Parent Trust Fund

Reduces funding for Neighborhood Youth Centers

Reduces funding for Science Program for Educational Reform Districts

Reduces funding for Wrap Around Services

Reduces funding for Parent Universities

Reduces funding for the School Health Coordinator Pilot

Reduces funding for Regional-Technical Cooperation

Reduces funding for Alternative High School and Adult Reading

Reduces funding for Youth Service Bureau Enhancement

Reduces funding for Health Foods Initiative

Reduces funding for School to Work Opportunities

Reduces funding for Commissioner’s Network Schools

Reduces the Priority School District funding for Extended School Building Hours and Summer School

Reduces funding regional interdistrict grant to reduce segregation

Reduces funding for the Leadership, Education, Athletic-Partnership (LEAP)

And the list goes on….and on…

And the Corporate Education Reform Industry is silent on these devastating cuts.

Their plan is simple – more money for charter school companies – cuts to public school programs and higher property taxes for the rest of us.

Connecticut has truly become the land where “step right up, buy your public policy” has become the standard.

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.

At last night’s candidate’s debate, Governor Dannel “Dan” Malloy, knowing that he will actually be forced to cut services and increase taxes, chose to repeat his “read-my-lips” pledge by saying, “Let me be very clear, there will not be a deficit, nor will there be a tax increase.”

Meanwhile, Foley, the Republican nominee who didn’t even bother to show up for the candidate debate, has taken an equally disingenuous approach to the state budget.

The two major party candidates’ — “Budget deficit? What budget deficit?” – strategy was on full display this week as the CTNewsjunkie reported, “Malloy, Foley Both Promise To Hold Towns Harmless.”

So Malloy and Foley are telling voters they will be no tax increases, no significant cuts in state services, no cuts in education or municipal aid and no mass layoffs of state employees.

The incredible truth is that the only candidate being honest about Connecticut’s budget problem is petitioning candidate Joe Visconti who says he’ll slash the state budget until it balances.  It would be a hard, even impossible, strategy to achieve and the impact would be disastrous, but give Visconti an A+ for his honesty.

Readers who want to know the truth about Connecticut’s ongoing fiscal crisis should read the Wait, What? posts of September 3, 2014 (Foley and Malloy are just plain wrong on taxes) and September 16, 2014 (Why Malloy’s (and Foley’s) anti-tax pledge is anti-middle class.)

As noted in the September 3rd post,

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 rose to 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 they 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.

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.”

As Keith Phaneuf is reporting in at CT Mirror,

Plummeting tax receipts have ripped a nearly $300 million hole in the next state budget, leaving legislators and Gov. Dannel P. Malloy just one week to fix it, according to a new report Wednesday from fiscal analysts.

Meanwhile, proposed new spending for pre-kindergarten programs, the elderly and working poor, public colleges and universities, and for cities and towns hang in the balance – as do tax breaks for teachers and consumers and the potential expansion of legalized gambling in Connecticut.

New projections from the administration and the legislature’s nonpartisan Office of Fiscal Analysis also worsened the deficit in the first budget after the November election, pushing it close to $1.4 billion or 7.4 percent of annual operating costs.

Meanwhile, the $500 million-plus surplus Malloy touted just two months ago when he proposed a tax rebate has disintegrated to $43 million.

Combined with the $271 million already in the emergency reserve, that surplus leaves the Democratic governor with a fiscal cushion of less than 2 percent against a post-election deficit more than four times its size as he enters his re-election campaign.

You can read the latest at: http://ctmirror.org/tax-receipts-plunge-next-ct-budget-300m-in-deficit/

Also, in the coming days, we’ll continue to explore the growing impact that three years of dishonest budgeting has had on the state of Connecticut, vital state programs and services, and the state’s citizens.