Rep. Giuliano Blasts Irresponsible Budget

A Press Release From Rep. Marilyn Giuliano

As the sun rose on Sunday morning, the Connecticut House of Representatives gave approval to a biennium budget that circumvents the Constitutional spending cap; relies on new gambling revenue; and accrues hundreds of millions of dollars in new debt, State Representative Marilyn Giuliano said.

The constitutional spending cap was put into place as a compromise to the newly instituted income tax back in 1991 to prevent state spending from increasing too quickly.  However, the majority party’s budget exempts a whopping $6.3 billion from the cap to make possible a 10% increase in overall spending.

“For years I have been concerned about state government spending, but at least we had the spending cap to serve as a financial firewall to protect Connecticut taxpayers,” said Giuliano. “Now, the majority party has made an end-run around the constitutional cap put in place by Connecticut voters. I am deeply troubled by this irresponsible and dishonest maneuvering.”

The budget borrows $750 million to pay for day-to-day expenses and delays nearly $400 million of scheduled debt payments that will cost tens of millions in interest payments down the road. While the majority party claims the budget does not raise taxes, it relies on revenue from a 16% increase in the gas tax scheduled to take effect on July 1st, an extension of the 20% corporate surcharge tax that was supposed to sunset, and a continuation of the electric generation tax that was also supposed to expire. There is also revenue expected to come from the addition of more gambling in the form of a game called Keno. 

“We are borrowing an alarming amount of money because we can’t afford the government we have. Yet, in the same breath, we are increasing spending. It’s irresponsible,” Giuliano added. “Our working families and businesses have contributed more than enough. It’s not fair to ask them to give more when government isn’t sacrificing. Our economy is stagnant and unemployment has remained high. Now we are compounding that problem.” 

A number of one-time revenues were swept into the General Fund:

• This year’s entire $220 million projected surplus

• $100 million from the transportation fund

• $25 million from the banking fund

• $15.5 million from the tobacco and health trust fund

The budget bill was not unveiled until 11:30pm on Saturday night and was voted on after5am on Sunday morning. Giuliano felt legislators should have been given much more time to pour over the details of the $44 billion spending plan considering the importance of this two-year budget.

The bill passed on a party line vote of 95-48 and still needs action in the Senate.