Connecticut's Budget! It's Hard Work! So Worth It!

A Letter from Governor Jodi Rell

July 30, 2009

Dear Friends:

The good citizens of Connecticut like you deserve a fair and balanced budget, one your family can afford and one that absolutely must keep our state a beacon for businesses and a home to a thriving workforce.

By the holding the line on taxes and reducing wasteful spending, elected leaders can help our beleaguered families hit hard by this recession and create a climate that will bring jobs and businesses to our state. That has always been my focus during the budget process, and I can assure you that has not changed. Not one bit.

We are now heading into the start of a second month without a budget, a stretch that has gone on far too long. But in that time, because I have stood firm for spending cuts, we have been successful in saving our families from as much as $1.5 billion increase in new or higher taxes.

In April, the majority Democrats proposed a $3.3 billion tax increase - the largest in state history. I said absolutely not. In June, majority Democrats called for $2.5 billion in tax increases. Again, I said absolutely not. Now they have cut it back to $1.8 billion in taxes. That is a victory for our taxpayers and a $1.5 billion avoidance of tax increases. But their taxes are still too high.

However, it has become painfully obvious that the majority Democrats cannot and will not cut state spending. You and other citizens of this great state want and need a budget much sooner than later and, as Governor, I intend to move our state forward. Therefore I am prepared to do that by recommending small and, in some cases, temporary tax increases.

Today (July 30) I released a new budget that cuts $1 billion in state spending. The majority Democrats managed to cut less than $130 million. While majority Democrats are calling for $1.8 billion more in taxes, my budget asks for $391 million in taxes and contains no income tax increases.

My budget raises "sin taxes" and makes a modest and temporary increase in the corporate surcharge. I am recommending a 10 percent increase in liquor taxes and $1 increase in the cigarette tax. I am asking for a temporary 10 percent increase in the corporate surcharge, a levy that will sunset after three years. The majority Democrats are seeking several new business taxes that will result in increased unemployment. I will not allow that to stand. It is both unpalatable and unwise and will bankrupt our future. Our families simply cannot afford the Democrats' tax package.

But again, we need a budget and we need it soon - it is what you and other taxpayers deserve. My proposal shows leadership and compromise.

I have asked legislative leaders to resume negotiations and I have called leaders of both parties back to the table for Tuesday, August 4. You and your neighbors have a lot at stake and you deserve leadership.  It is my hope to have a budget passed and signed into law as soon as possible.

Respectfully,

M. Jodi Rell

Governor