House Republican Press Release

 

 

 

October 1, 2008

Press Office: 860-240-8700

 

A VIEW FROM THE INSIDE
State Representative Ruth Fahrbach
State budget deficit requires swift action

 

Republicans in the legislature are calling for swift action to offset the growing $300 million state deficit that was confirmed by independent budget analysts during a fiscal forum convened by House and Senate Republicans at the Legislative Office Building in Hartford on Sept. 25.

 

Sinking revenues and the refusal by the majority Democrats and the Governor to make budget adjustments during the regular legislative session this year has led to the most desperate fiscal problems the state has faced in years. The budget problems will only worsen over time without legislative action and the deficit could reach $1.2 billion in 2010, according to the non-partisan Office of Fiscal Analysis.  Raising taxes is not option that should not be considered! Connecticut taxpayers cannot afford higher taxes.   Nor should we raid the rainy day fund.  With a deficit that is projected to grow over the next few years, the rainy day fund would be only a short term solution and would not address the projected deficits in future years.  

 

The forum included budget experts from the Governor’s office and revenue analysts. Several Democrats also took part in the forum that Democratic leaders declined to attend.

 

The forum revealed that:

·         Investment income is off 41 percent;

·         Real estate conveyance taxes are down more than 40 percent;

·         Gambling revenue is down 4.3 percent;

·         Car sales taxes are off 10.8 percent;

·         Job growth overall has remained flat for nearly two decades.

 

Interestingly, the data presented at the forum shows that Connecticut is over reliant on certain areas of the state when it comes to revenue. Fairfield County provides 45 percent of all the incomes taxes to Connecticut, for example. Since the budget was adopted in June of 2007, housing starts are off and astounding 122 percent. 

 

It is most imperative that we act quickly to address this growing budget deficit, as it is much more difficult to make budget adjustments within state agencies the further you get into the fiscal year. Difficult choices are going to have to be made, and those choices should be made by the current members of the legislature, who are responsible for passing the budget under which we are currently operating.  

 

 

State Rep. Ruth Fahrbach represents the 61st District, including Suffield, and parts of Windsor and East Granby, in the General Assembly.