Governor Rell Offers Third Budget Proposal

$36.9B Plan Reflects Governor’s Core Principles: Cutting Spending, Reducing Bloat of Bureaucracy, Positioning State for Economic Success

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            Governor M. Jodi Rell today presented a third state budget proposal, one that reduces state spending by $1 billion. The Governor’s proposal also calls for $391 million in new revenues by increasing “sin taxes” on alcohol and cigarettes and a temporary, three-year surcharge on corporate taxes, compared with $1.8 billion in new and increased taxes contained in a plan unveiled earlier today by majority Democrats.

            “We all know the economy has worsened – and we still don’t have a budget,” Governor Rell said. “We need a budget. We need to work together and do the job that the people of Connecticut elected us to do.

            “The proposals offered by the Democrats today are unsustainable and unaffordable,” the Governor said. “Their budget calls for $1.8 billion in new or higher taxes while cutting just $130 million in state spending – just three-tenths of one percent of their $37.9 billion budget. Their proposals will lead to red ink and pink slips.”

            Governor Rell’s plan actually shrinks the state budget by 1.3 percent in the first year of the biennium and spending would grow by just 1.2 percent in the second year.

            “I offer this plan in the spirit of compromise – to get a budget passed into law and to help the working families of Connecticut as they struggle in this economy,” the Governor said. “I would have preferred not to raise taxes at all. But it has been clear for months – and it remains clear – that the Democrat majority cannot, will not, cut state spending. I could cut more – but they cannot. And we need a budget.

            “I am showing the leadership we need to get us to the finish line,” Governor Rell said. “In that vein, I have invited the legislative leaders to join me in compromise – and to join me in negotiations starting Tuesday. I hope we will be able to reach an agreement soon and bring a budget to a vote.”