The State Budget
Governor Rell: Surplus Up $92 Million
April 20, 2007
“While the surplus and jobs numbers are encouraging, we
must continue to ensure that we move in the right direction. The Democrats’
recent bond proposal includes deep cuts to my recommendations for Manufacturing
Assistance funding – the same funding that is largely responsible for the jobs
growth we are currently enjoying.”
********************
Governor Rell
to Mayors: Democrats Budget Proposal Has Dire Consequences for Municipalities
April 18, 2007
“The Democrats are calling for a first-year investment in
education that is less than I proposed and would do nothing at all in the
second year.”
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Governor Rell's Property Tax Plan
Governor Rell's Property Tax
Plan Click Here
Property Tax Press Release Click Here
"Our local taxpayers are
in need of help. They are straining under the weight of ever-increasing
property taxes. It is time for us to take action, just as we did on ethics and
campaign finance reform and transportation."
Property Tax Relief PowerPoint Presentation Click Here
What Newspapers are Saying About the Governors
Plan Click Here
Listen to
Governor Rell's PODCAST About Property
Tax
Relief Click
Here
********************
Governor M. Jodi
Rell's State Budget Address
February 7, 2007
Mr. President,
Mr. Speaker, Senator Williams, Members of the General Assembly, Guests.
Today I present
to you my proposed biennial budget for the State of Connecticut.
This document
outlines my spending priorities for the next two years – and it lays out a
vision for Connecticut
for the next twenty years -- and beyond.
It is a budget
that invests in the generations -- in this generation and in the generations to
come.
It makes
unprecedented, long-term investments in education so that our state's future is
built upon the most solid footing of all - our children.
It invests in
health care and the environment. It invests in open space, farmlands and clean
water. It continues our investments in affordable housing, safe neighborhoods
and transportation.
It invests in
job creation and energy programs.
Little more than
a month ago I proudly took the oath of office as Governor and spoke of our
being the stewards of the public trust, of high expectations for leadership, of
guiding our state at an important crossroads in time.
A time to
cherish and protect all that makes CT so special - her natural resources, her
culture, her history, her people and her spirit. A time to meet
the pressing needs of today and to plan for tomorrow.
The budget I
present to you today honors our public trust and meets those expectations.
It is time for
us to take action. No more easy promises. No more press releases. No more
summits.
Let's get it
done.
The issues of
our day -- eminent domain, health care, energy, jobs and education -- have been
debated and debated and debated - year after year after year.
This session we
must get it done.
The budget I
present today was a challenge in putting together. It represents a
compilation of very wrenching decisions, difficult choices, too
many needs for too little money.
Spending cuts
that some will decry for one reason or another. New programs and services that
some had called for but are not funded. Indeed, I will undoubtedly be
criticized for cutting this or not including that.
Where I do
provide new funding for programs or services, I will probably be taken to task
for not providing enough.
I will accept
such criticisms ... for that is part of the price of leadership.
Leadership
demands courage and vision. It demands difficult, sometimes unpopular
decisions. It demands action.
So let me say at
the outset that I have the courage in this budget to call for specific actions,
to propose landmark programs and reforms -- and yes, to call for tax
increases. Tax increases on one side of the ledger and tax cuts on
the other.
Some may ask:
Why is it that we need tax increases next fiscal year when the state has a 500
million dollar budget surplus this year?
Because the cost
of running state government next year - without any new programs or services –
will increase by over 800 million dollars just to fund inflation, debt
service, health care for active and retired state employees, energy costs
to heat and light state buildings, gasoline for state police vehicles,
arbitrated contract awards for state employees and more.
$800 million
before any new investments are made.
And I want to
make new investments - investments for the generations - especially in
education, in property tax relief, in health care, and in energy relief.
The cornerstone
of my budget includes sweeping proposals to transform our educational system. I
am proposing that we live up to promises that have long been made, but too long
ignored.
Today I am
proposing the single largest investment in education in Connecticut history:
3.4 billion new dollars over the next five years.
My proposal is
comprehensive -- reaching from pre-school through college.
Today I sound a
clarion call on behalf of our children.
My education
plan invests in our children – and I firmly believe it will save billions of
dollars and thousands of young lives for generations to come.
It will save in
terms of prisons we will not have to build, lower teen pregnancy rates, reduced
high school drop out rates and more.
Because education is the only real cure for each and every one of these
ills.
Ills that are
measured not just in dollars, but in lives, and in the quality of those lives,
and in lost opportunities and unfulfilled promises.
In 2005 I
created the Early Childhood Education Cabinet, to assure support for high
quality preschool for all 3- and 4-year-olds. This is critical if we are
to make progress in closing the achievement gap.
Over the
biennium, I am proposing that more than 40 million dollars be invested to
finance one-third of the unmet preschool needs for these children – children
living in the poorest communities of our state. I am also proposing 4
million dollars for 4,000 slots.
And there is a
workforce element to my early childhood initiative.
Our most
financially challenged school districts face the greatest need in raising
academic performance and they bear the greatest responsibility for educating
our workforce of the future.
That is why we
need the most competent teachers to work in the early childhood field and why
under my plan additional academic credentials will be required in 2010 and
2015.
We will make
improvements at the pre-school level, but we cannot let children slip back when
they reach elementary school. We cannot allow our children to fall
through educational cracks, for if we do we will spend tens of millions of
dollars on remedial instruction; we may forever lose these children
academically and socially and our state’s economic future will be at risk.
That is why
increased funding must be accompanied by accountability.
For years we
have talked about a 50/50 cost sharing for education between the state and its
municipalities - this budget gets it done.
How can we help
our young people fulfill their potential and their promise – if we don’t keep
ours?
Now is the time
to act.
For years we
have talked about lifting the cap on Education Cost Sharing
grants to restore fairness to the formula - this budget gets it done.
For years we
have talked about raising the foundation level of the ECS formula – this budget
gets it done. Under my budget the foundation will increase from
$5,891 to $9,687 over five years.
For years we
have talked about ensuring that each city and town receives an increase in
education funding levels – this budget gets it done.
All in all, my
budget provides for a 59% increase in ECS funding over the next 5 years – a 59%
increase. And the increases begin right away – they are not back-ended.
Every town will
benefit. For instance, by year 5 of my program, Bridgeport will be receiving 85 million
dollars more a year for education. Danbury
will be receiving 28 million dollars more. West
Hartford will be getting 22 million dollars more.
As to
accountability, I am calling for a number of new measures. We will
require early intervention programs for students at the first signs of academic
need. Those children who fall behind will find themselves in summer
school.
All day
kindergarten will be required where large percentages of students do not reach
proficiency levels. More math and science courses will be required
for high school students.
A high school
graduation exam will be put into place.
Districts that
fail to make adequate progress will be required to designate more money for
intervention and will be in danger of losing their autonomy. For schools
that continue to fail, the state Department of Education may replace personnel,
replace school administrators or reconstitute schools entirely.
Tough polices,
but needed policies.
And we must make
dramatic investments in higher education as well.
Over the past
several years we have transformed the physical campuses of our state colleges
and universities.
Now is the time
to transform our commitment to financial aid. We cannot allow money to be
a barrier to student access to higher education. Therefore, I am
recommending 25 million dollars in additional student financial aid for both
public and private colleges.
This investment
will result in an additional 14,000 students receiving scholarships and aid.
I firmly believe
that we are making history today with this unprecedented commitment to
education. It is our obligation as government leaders. It is our
call to leadership.
And we need look
no further than into the eyes of the future – the eyes of our students.
Some of whom are with us today.
I would ask the
students from the University High School of Science and Engineering in Hartford to stand.
They are why we
need to invest in education. They are our future. Let us pass
this program for them – and for all our students. Thank you for being
here.
Aside from
education, health care continues to be a very real need in our state. We are
fortunate to have one of the highest percentages of people who have health
insurance.
But at any given
point in time, about 220,000 people are without insurance. In December, I
proposed the Charter Oak Health Plan and enhancements to the HUSKY program to
make sure that every adult and child in Connecticut
has access to health insurance.
The Charter Oak
Plan will provide good, basic health care to uninsured adults for a premium of
about 250 dollars a month. Since announcing my plan, I have heard from many
people eager for the program to become available.
I have also
heard the concern that this premium could still be difficult for some lower
income individuals – and I agree.
Therefore, I am
proposing funding of 55 million dollars for premium assistance to help lower
income individuals enroll in the Charter Oak Plan.
For some, the
monthly premium will start at just $75 dollars and will move up the income
scale.
I am also
proposing important enhancements to the state’s HUSKY program to ensure that
every eligible uninsured newborn and school-aged child is enrolled.
Over the past
thirty months, nearly 2,800 newborns were identified as having no insurance
coverage. That number should be zero.
My proposal is
to guarantee that every eligible newborn leaves the hospital with health
insurance. Based on income, parents might not even have to pay a premium.
But if a HUSKY
premium is required, the state will waive the premium for the first two months.
This will be our gift to Connecticut’s
newborns. And it will be another way to ensure that all of our children get a
healthy start in life.
Securing the
future means ensuring that the places in Connecticut
we love today will be here tomorrow.
My budget
includes more than 2.6 million dollars in operating funds and 587 million
dollars in capital funding for responsible growth initiatives.
Whether we live
near Long Island Sound, in the rolling countryside or in any of our cities and
towns, a walk or a drive in any season reminds us within moments just why we
love to live here.
Yet, Connecticut is also a
state under siege. We know we need economic development and jobs, but we also
know we need new housing and new businesses – because Connecticut will never be about standing
still.
Our task is to
balance these needs with thoughtful and forward-thinking policies that will
preserve – forever preserve – the character and beauty of our state.
In October I
committed the state to a path of responsible development by creating an Office
of Responsible Growth.
Today I commit
much more.
My budget:
* increases
grants to regional planning agencies
* provides 1.6
million dollars for enhanced global positioning information to help towns make
informed land use decisions.
* Includes 1
million dollars each year to help towns upgrade their local plans for
conservation and development.
* Proposes 245
million dollars in bonds per year for clean water projects, along with $20
million to secure open space for the future; And
* Provides 10
million dollars per year for Farmland Preservation Grants and 7.5 million
dollars for brownfield redevelopment purposes.
I am also
establishing a high level advisory group -- to prioritize projects that link
transportation, housing, and job creation. They will be charged with
developing a $20 million Responsible Growth Incentive Fund.
No plan for the
future can be complete without a plan for dealing with energy issues.
Dramatic energy
price increases have strained the budgets of individuals, businesses and
governments.
In September, I
unveiled my Energy Vision. It is a framework of aggressive initiatives
designed to drive the state toward more efficient energy usage and to foster
renewable resources.
There are four
major elements of my plan:
1) immediate cost reductions --
2) energy efficiency
3) making us a leader in alternative and renewable energy, and
4) better coordination and integration of energy policy and
planning.
To provide rate
relief I am proposing an Electric Conservation Incentive Program to provide
residents with up to 200 dollars if they significantly cut their electricity
usage.
I am also
eliminating the sales tax surcharge that is applied to businesses when their
electric usage exceeds $150 per month. This tax surcharge places Connecticut’s businesses
at a competitive disadvantage, and its elimination will provide immediate
relief to thousands of businesses.
My budget caps
the gross receipts tax to provide price protection for consumers should
gasoline prices increase significantly.
My budget also
fully restores the funding for the Energy Conservation and Load Management Fund
and the Renewable Energy Investment Fund.
I include
incentives aimed at promoting the local production of biofuel
crops and developing in-state biofuel production
facilities.
Lastly, in an
effort to address the fragmented coordination within state government, I am
calling for the creation of a new state Department of Energy.
This agency will
assume the policy and planning functions of our energy needs. The DPUC will be
restructured to focus its role on utility regulation.
Two years ago, I
said that it was time to confront our transportation problem in this state.
You joined with
me in showing leadership on transportation needs as we passed the largest
investments in transportation in more than 20 years. In fact, we have
done more, working together, in the last two years than had been accomplished
in the last 20 years. I thank you for your work.
To update you, I
cut the ribbon on a new rail maintenance facility in New Haven. The replacement fleet for the New Haven Line is being
built. The New Britain to Hartford busway is
moving forward. There are new rail stations in Guilford,
Clinton and
Branford. New stations are planned for Georgetown,
West Haven, Orange and Westbrook.
In addition we
are constructing additional rail parking in Bridgeport,
Branford, Clinton and Madison. Over 5,000 new parking spaces
are in various stages of development, just on the New Haven line alone.
But there is
more to do.
My budget
includes:
5 million
dollars for rail station improvements and
24 new rail cars
--
12 for MetroNorth and 12 for Shoreline East.
This will bring
the total number of new cars for Connecticut's
commuter rail fleet to 366 – and they can't get here soon enough!
I am also
proposing 35 million dollars to construct a new parking garage in Stamford. And I
have directed the DOT to ensure that alternative parking arrangements are
provided for the duration of the construction period.
My budget also
includes $4.4 million to increase Shoreline East service, including first-time
ever weekend service and additional weekday trains.
My budget
provides 40 million dollars to address high priority bridge repair and
replacement projects. Our commitment to public transportation is in
addition to our commitment to our roadways – not at the expense of them.
Finally, my
budget includes nearly 200 new positions for the Department of Transportation,
including engineers, construction inspectors,
and CHAMP motorists’ assistance drivers.
We are recasting
our transportation system in Connecticut
– and you are seeing the results of our commitment in every corner of the
state!
One corner of
our state that is a focus of my budget is Southeastern CT. It was just two years
ago that the federal government tried to close our Navy base in New
London-Groton. We fought back – as Team CT – and we won, convincing the BRAC
Commission of the value of our sub-base.
But it was a
lesson learned – a lesson that told us we needed to diversify and improve the
economy of southeast CT
so that we are never put in that position again. I have taken that
lesson to heart and in my budget I am not only enhancing the Shore Line East
rail line, but I am committing 6 million dollars for the Southeast Connecticut
Tourism Circulator, a bus for tourists to travel from New London to Mystic
Seaport to the casinos and other popular area destinations.
I am also
proposing $10 million for a revolving economic development loan fund, and
750,000 thousand dollars to develop a master plan for an intermodal
transportation center in New London.
All of these
initiatives, together with what we have already done, represent my continuing
commitment to the southeastern part of our state as we bring a new vitality to
the region.
I am also
bringing vitality to our state’s job picture and economy throughout my
budget.
Through the unprecedented investment in preschool and elementary and
secondary education.
In expanded college scholarships.
In expanding the
state’s job creation tax credit to entice more new
development.
In increasing support for small business innovation research.
In assisting the CT Center for Advanced Technology with subsidies to
develop a fuel cell cluster.
In providing funding and policy direction for brownfield
redevelopment.
In our financing of increased rail service. And more.
It is all
interwoven in a new vision for Connecticut.
A vision where we invest today for the rewards of tomorrow.
A vision where we simply get it done.
While we
modernize and improve our transportation system we cannot lose sight of the
need to improve the overall safety of our roadways. People in Connecticut are rightly
frustrated by the unsafe drivers who seem to grow in numbers each day.
People who speed well above 65 miles per hour. Those who change lanes constantly and unsafely. Tailgaters. Those who do not use signal lights. Those who drive improperly in breakdown lanes. Road
rage, unfortunately, is becoming commonplace because unsafe driving
is becoming commonplace.
We need more
troopers on the road. And we will provide them.
I am proposing
to re-deploy 13 of 16 troopers at the Department of Emergency Management and
Homeland Security back into the field.
I am also
calling for the State Department of Motor Vehicles to assume full
responsibility for the operation of our weigh stations. This proposal
would make 21 troopers available to redeploy to highway patrol.
These simple
changes will put an additional 34 experienced state troopers on the road
and allow us to open the weigh stations far more often -- and
significantly increase our detection of unsafe trucks on our roads and
highways.
In addition to
this redeployment, I am proposing the funding of three trooper classes in the
next two years.
I am also
committed to reducing the backlog of the input of DNA samples at our state
forensic laboratory.
The value of
timely DNA testing was never more evident than in the tragic case of James
Calvin Tillman. Convicted of rape in 1989 and sentenced to 45 years in
prison, Mr. Tillman was exonerated after 18 years behind bars when modern DNA
testing proved that he did not commit the crime for which he was
convicted. What happened to Mr. Tillman must not – cannot - be repeated.
While there is
no way to recapture time lost and to compensate for the tragedy of injustice, I
firmly believe that the state owes Mr. Tillman some form of reparation.
Therefore, I am proposing a tax-free lump sum payment of $500,000 for Mr.
Tillman so as to help him re-establish his life. Mr. Tillman and his
mother are with us today – I ask that they stand.
I apologize on
behalf of the state. I thank you for your grace and dignity in dealing
with this injustice and I wish you well in the next chapters of your life.
And speaking of
doing what is right – we must end the underfunding of
teacher and state employee pension plan obligations. Our teachers
honor their commitment to our students everyday in
their classrooms. Our state employees honor their commitment to the
people of Connecticut
by working hard everyday. We must honor our teachers and our state
employees by fully funding their pensions.
To this end, my
budget includes payments equal to 100% of those actuarially required.
Fiscal
responsibility also means proposing a balanced budget. As I said earlier
my budget contains tax increases. I wish it did not. I wish we
didn’t have structural holes in our current budget. I wish our existing
revenue stream could keep pace with rising energy costs, rising employee costs,
rising health care and the like. I wish our existing revenue stream could
allow us to make the investments we need in education, energy, transportation
and the like. But it cannot.
And I will not
employ gimmicks like underfunding pensions,
underestimating caseload counts, bonding for current services, and more. It’s
time – long past time – that we were fiscally responsible.
To pay for our
historic and unprecedented investments, I am proposing a fractional increase
across the board in the income tax rate – a quarter of a percent for this
fiscal year, and an additional quarter of a percent in the following
fiscal year. I am also calling for an increase in the cigarette tax of 49
cents per pack. These dollars will be targeted to health care programs like my
Charter Oak Plan.
The decision to
raise taxes was not an easy one, I can assure you. But remember, while we
are increasing the income tax rate we are substantially increasing state aid to
education and providing property tax relief.
For years people
have called for property tax relief. This budget gets it done.
That is why I am
again proposing the permanent elimination of the car tax.
I want to
eliminate the local property tax on privately owned or leased passenger cars,
non-commercial pick up trucks and motorcycles over a five-year period starting
this July.
As of July 1,
2011, Connecticut
taxpayers would no longer have to pay the local car tax.
Cities and towns
would be reimbursed for lost tax revenue, assuming a 100 percent collection
rate.
In fact, the 100
percent reimbursement municipalities receive from the state will actually be
higher than what many of them collect now.
Let’s do away
with this burdensome, regressive tax and put taxpayers’ hard earned dollars
back in their wallets – where it belongs.
Let me also be
very clear about one more thing: I have had to make cuts I did not want
to make and I have had to raise taxes I did not want to raise, in large part
because we have a constitutional cap on spending. But, I respect that cap
and I believe it acts to restrain runaway spending and taxes.
81% of the
voters supported the cap when it was put into place 15 years ago. They still
support it today. So do I.
The cap must
always be the foundation of our fiscal policies, and I will protect its
integrity and oppose efforts to open up its definitions in order to turn the
spigot on to well-intentioned but unaffordable spending increases.
I am exceeding
the cap this year to provide for increased state spending for education
programming and education-related property tax relief. It’s a targeted
expansion, not an open-ended redefinition that will allow spending in other
areas to explode.
As I have said
time and again today, my budget and tax proposals represent an investment in
our future. Investments in the generations to come.
Investments that go beyond budget and election cycles.
I believe this
budget is very good for the people of Connecticut.
I believe it will help fulfill the hopes and dreams of all our families.
We are a state
in transition. We must continue to invest in our people.
Education. Energy. Health
care. Responsible growth. Four issues that all
speak to the need for generational investment. These issues shape the quality
of life we are able to provide for ourselves and our children.
It’s time to
honor our commitments. It’s time to show real leadership. It’s time
to get it done.
Thank you and
God Bless the Great State of Connecticut.
Content Last Modified on 2/7/2007 4:04:24 PM