Thread: POLITICANS PLAY SOLITARE, WATCH BASEBALL DURING BUDGET DEBA

House Minority Leader Lawrence F. Cafero Jr., R-Norwalk, far right, speaks while colleagues play solitaire on their computers as the House convenes Monday night to vote on a new budget. (AP)


POLITICANS PLAY SOLITARE, WATCH BASEBALL DURING BUDGET DEBATE IN CONNECTICUT...

http://www.courant.com/



Following approval by the House of Representatives shortly before midnight, the state Senate approved the Democratic-written budget early Tuesday morning that raises the income tax on millionaires and funds numerous social programs.

The vote marked the latest turn in the longest budget battle in state history - breaking the record that was set in 1991 during the creation of the state income tax. Connecticut has been one of only two states - along with Pennsylvania - that still did not have a budget in a summer-long soap opera that was filled with dueling press conferences and high-pitched political rhetoric on both sides. (Pictures: Legislators Meet To Hammer Out Budget)

The bill was approved, largely along party lines, by 22 to 13 shortly before 2:30 a.m. Tuesday. Sen. Joan Hartley of Waterbury was the only Democrat who voted against the budget - joining all 12 Republicans. Sen. Andrew Maynard of Stonington was traveling out of the country and missed the vote.

Republicans complained that the two-year, $37 billion budget would increase spending by more than $800 million over two years, while Democrats said they had cut $3.1 billion from the "current services'' budget that counts lower-than-expected increases as cuts. Those spending cuts represent 35 percent of the state's projected $8.5 billion deficit, according to the legislature's nonpartisan fiscal office. Despite those figures, Republicans said that the budget had "no real cuts'' and simply had accounting maneuvers and money transfers. (More: Budget Details)

The budget calls for cutting the sales tax from the current 6 percent to 5.5 percent in January 2010, along with increasing the state income tax to 6.5 percent on couples earning more than $1 million annually and individuals earning more than $500,000. The sales-tax cut, however, is contingent and can be repealed if the state does not meet its revenue targets.

Senate President Pro Tem Donald Williams, the highest-ranking senator, said the tax package "can move this state forward'' in the future. He thanked Republican Gov. M. Jodi Rell for working with the legislature on both sides of the aisle and not being "wedded to strict ideology'' on budget issues.

"There will be no perfect budget in this - the worst budget year in our lifetime,'' Williams said in wrapping up his speech. "This budget does about the best we can possibly do in these tough times.''

Rell was uncharacteristically silent Monday on the budget and did not talk to reporters on whether she would veto or sign the Democratic bill. As such, some legislators predicted that Rell might allow the controversial budget to become law without her signature.

Senate Majority Leader Martin Looney, a New Haven Democrat, said, "This is a responsible budget for the state of Connecticut in hard, challenging economic times.''

The income tax increase is "a very significant breakthrough'' for the rich to pay more of the tax burden, he said.

Senate GOP leader John McKinney of Southport voted against the measure said that none of the budgets were particularly good budgets because the state is facing the largest deficits that any legislator has ever seen.

"It's too much in spending, too much in borrowing, too much in tax increases,'' McKinney said at about 1:45 a.m. Tuesday. "We're spending more money in 2010 than in 2009. ... Businesses aren't increasing their spending. They can't understand why we in government are doing that.''

He added, "There are too many promises in this budget that we can't keep. ... We can't rely on the financial industry to save us again.''

It would have been a better idea, McKinney said, to close the state-owned Riverview Hospital for young individuals with psychiatric problems that would have saved millions of dollars. It costs the state $862,000 per year, per child at that psychiatric facility, which will continue to be funded. The financially troubled UConn Health Center will receive $12.8 million more than last year "instead of having a solution'' in the long-term that could have saved money for the center that has been bailed out by the legislature four times since 2000, he said. Pork projects are littered throughout the budget, including funding for some food pantries and not others, he said.

He complained that deferred Medicaid payments and deferred pension payments were not good financial ideas and essentially deferred decisions until a later date. He complained that the state will be paying $1 million over two years to teach the elderly how to avoid tripping and falling.

"I have a hard time saying that with a straight face,'' McKinney told his Senate colleagues.

McKinney said he hopes that Republican Gov. M. Jodi Rell vetoes the budget, but he told his colleagues that he did not know if that would happen.

"I'm sad that the majority has failed to meet her half way,'' McKinney said.

Sen. Andrew Roraback, a Goshen Republican who represents multiple towns in Litchfield County, told his Senate colleagues that the idea of balancing the state budget on the backs of a relatively few millionaires was a bad idea and would make the state's revenue stream even more volatile. In tough economic times, the money could be "here today, gone tomorrow'' as the wealthy take huge hits in their income in an economic downturn, he said.

The chief reason that the state is in economic difficulty is that the state is projected to collect about $2 billion less this year than last year because of the major collapse on Wall Street that began with the bankruptcy of the Lehman Brothers investment banking firm in mid-September 2008. The entire market then took a sharp fall as the federal government was forced to bail out major corporations, and the credit markets started to dry up.

"We're setting ourselves up for a potentially dire circumstance two years from now,'' Roraback told his colleagues on the Senate floor.

Sen. Dan Debicella, a Shelton Republican who serves as the ranking Senate Republican on the budget committee, said the Democratic bill creates an overreliance on 27,000 very wealthy families. If 2,000 of those families moved out of the state, it would be "devastating'' for the state budget, he said.

"This is the wrong budget for Connecticut right now. It's bad for our families. It's bad for business,'' Debicella said. "We don't just have a revenue problem in Connecticut. We have a spending problem.''

The bill was filled with phony cuts from the "current services'' budget that do not cut spending as advertised, he said. He and other Republicans have complained about fake lapse savings that do not require specific details in the budget.

For example, the budget calls for closing two prisons to save money, but it does not include any details on how or when they would be closed.

"This is dangerous, and I understand the desire that everyone shares that the rich should pay their fair share,'' Debicella said.

The contingent sales tax cut is "a fake tax cut'' that "only happens if our revenue estimates are precisely right,'' he said.

Sen. Sam Caligiuri, who is running for the U.S. Senate against Democratic incumbent Christopher J. Dodd, said Connecticut is at "an absolutely critical crossroads in its history.''

Two years ago, Caligiuri voted against the two-year budget that ended on June 30.

"This problem will not end tonight if we adopt the budget as proposed,'' Caligiuri said. "We have two choices - we either cut spending back to a level'' that meets expenses or raise taxes.

The Democratic budget will drive businesses out of the state, "and we will destroy the state we love,'' Caligiuri said. "My friends, that will be the outcome - in my judgement.''

Noting that his hometown of Waterbury has had huge budget problems in the past, Caligiuri said he hopes that Connecticut does not make the same mistakes as Waterbury did.

The budget calls for spending the entire $1.4 billion rainy day fund to cover the deficits over the next two years, along with $1.5 billion in federal stimulus money over two years. On top of that, the bill securitizes $1.3 billion in order to close the gap that won't be there after the biennium is over. Pension payments were deferred until later years. When those are all combined, the budget deficits will be large in the future, lawmakers said.

The biggest problem, Sen. Rob Kane said at around 1 a.m. Tuesday, is the 10 percent surcharge on the corporate profits tax that is retroactive to January 1, 2009 for three full years - meaning the 2009, 2010, and 2011 calendar years. The surcharge only applies to major companies with more than $100 million in annual income, such as giants like General Electric and United Technologies.

Sen. Michael McLachlan of Danbury said the state is relying heavily on federal stimulus money to balance the budget.

"We can't replace the Obama-bucks in 2011,'' McLachlan said.

Sen. L. Scott Frantz, a Greenwich Republican who also represents parts of Stamford and New Canaan, said he was highly disappointed in the budget because he believes it does not properly address the huge economic problems facing the state. The state's tax collections are in "a downward death spiral.''

"Anecdotally, hundreds, if not thousands of firms have left the state of Connecticut'' for other states and even foreign countries, Frantz said, saying that Bermuda will "treat your capital, treat your families'' in a welcoming fashion.

"Yes, it's a wonderful state. It has great beaches. It has Long Island Sound. It has great schools,'' Frantz said, adding that hedge-fund wizards and financial professionals will not stay in Connecticut indefinitely if their taxes keep going up.

"What are we going to do six months from now when we're going to be back here adjusting the tax rates?'' Frantz asked. "The rating agencies will ultimately come to Connecticut and go through our budget with a fine-toothed comb.''

Frantz noted that he drove past 14 or 15 homes in his district Monday on the way to the state Capitol that he said would be "mildly catastrophic'' if those families moved out of Connecticut. He said he drove past UBS, RBS, Sikorsky, and other companies Monday on the 90-mile ride from Greenwich and wondered what would happen if those firms moved out of the state.

"I'm still trying to figure out where the logic is because there's a disconnect,'' Frantz said of the state's message to businesses. "These business leaders are very intelligent. ... They are in a position where they can pick up and move. ... This is the most monumental decision you will be making in the state Senate.''

The Democrats had a sharply different view than the Republicans. In 1991, 35 percent of the deficit was made up through tax increases. In 2003, the number was 40 percent. In 2009, about 12 percent of the deficit is made up through tax increases, Williams said.

The bill preserves financial aid for college students, school-based health centers, Dial-A-Ride for senior citizens, pre-school education, the state's 62 family resource centers in public school buildings, and the state's subsidy for the two Life Star emergency helicopters that operate mainly out of Hartford Hospital. Noting that Republicans complained that the Democrats had three separate press conferences about Life Star, Williams said that Democrats should have had 50 press conferences on the issue.

Overall, the spending increase was far lower than in past budgets when the state was flush with cash in good economic times.

"There's no dramatic increase in spending,'' Williams said after 2 a.m. Tuesday. "This budget does not shred the safety net that keeps a roof over their head, that keeps them in their apartment. It continues to provide, for example, preventative dental care for those in need.''

Nice to know we are gettin our moneys worth....Red eight on that black nine sir...

lmfao

What do these people get paid for?

I'm also assuming that all of those laptops the reps are using to <cough> "work, are paid for by the taxpayers?

Everybody whose employer is paying for our salaries, and the computers, so we can spend our time playing games and watching sports please stand on your head

My boss won't even allow long distance service on my office phone/fax......for work I have to use my own home lines, computer, internet service and everything else. And I also have to foot the bill with no reimbursement.

Maybe I should go into politics

Originally Posted by Tbow009

Nice to know we are gettin our moneys worth....Red eight on that black nine sir...

lmfao

Nice one.

Glad to see they take their job seriously