Pledge: No Tax Increases—

Rep Lyddy Stands With Bipartisan Contingent On $220 Million In Cuts

By John Voket

Newtown’s State Representative Chris Lyddy told The Newtown Bee that Legislative Democrats have found millions of dollars to help cover the current fiscal year’s budget shortfall. State officials, including Governor M. Jodi Rell and State Comptroller Nancy Wyman, estimate the current budget deficit at about $1 billion.

Some lawmakers, however, are predicting they will be returning to the state capitol, possibly before the end of the fiscal year, to consider another deficit-mitigation plan as the economy gets worse and the current deficit swells toward the $1.3 billion mark.

That concern did not dissuade Rep Lyddy from standing with a unanimous, bipartisan contingent that supported a $1.23 billion deficit mitigation initiative that nearly eliminates that projected deficit for the current fiscal year through a series of cuts and other adjustments without any tax or fee increases.

Rep Lyddy said about $1.6 billion in various off-budget funds or “nonappropriated” accounts were identified by the Legislature’s Office of Fiscal Analysis, and that he supported a plan that will include $220 million in savings being diverted from those funds.

Senate President Donald E. Williams, Jr, D-Brooklyn, told the Associated Press the Legislature’s budget-writing committee will be asked to review the long list of little-known funds and decide where to cut the $220 million. Some of the money, he said, has been sitting untouched for several years.

“We do know that all of it is taxpayer money, all of it is off-budget money and it’s time that that money is accountable to taxpayers,” Rep Williams said. “And in this crisis it makes sense to use that money to help balance the budget.”

The deficit mitigation plan was subsequently approved by the Senate following late night deliberations Rep Lyddy said broke around 1 am Thursday morning.

In a release, Rep Lyddy said the deficit package defended seniors from cuts proposed by the governor that would discontinue payment for certain prescription drugs under Medicare Part D, preserved special education funding to towns, and maintained critical investments in renewable energy,

“Funds that promote renewable energy are an important part in our state’s economy and future,” said Rep Lyddy. “We need to find a balanced approach to our budget that does not adversely impact our ability to create new jobs in the emerging green energy industry.”

Gov Rell’s proposal would have taken money from state energy conservation funds, which environmentalists say is needed to encourage Connecticut’s growing alternative energy industry.

Gov Rell called the $200 million figure “incredible” and said it came from “unspecified savings from accounts that are depleted and largely restricted.” She described the Democrats’ plan as “a disappointment on a number of levels.”

Robert Genuario, the governor’s budget director, said the funds are not pools of hidden cash. Some are large bond funds that finance public school construction and purchases of open space and cannot be used for other purposes. Others, he said, were set up by donors wishing to make charitable contributions to the state for specific purposes.

Mr Genuario, who has already examined many of the funds for extra revenue, said cutting $200 million from them to help balance the budget “is a reasonable effort” but “may be optimistic.”

By using the money from the funds, Rep Lyddy believes he and his fellow House Democrats can avoid most of the reductions to state social service programs that Gov Rell proposed in her plan, such as health insurance for children and prescription drug coverage for the elderly and disabled.

The deficit mitigation package also includes $373.3 million from the federal stimulus package and $281.7 million from the state’s rainy day fund.

The governor has said the Democrats’ plan contains few real cuts but does have “$5 million in unspecified contract savings, $16 million in unspecified rescissions and an incredible $200 million in unspecified savings from accounts that are depleted and largely restricted.”

“I am pleased the legislature was able to find additional savings to preserve funding to special education and continue to help protect seniors, the disabled and working-class families,” said Rep Lyddy. “The legislature encourages the governor to continue to use her rescission authority as we work together to balance this year’s budget.”

The governor said she will continue to work with lawmakers to address the state’s fiscal problems.

Newtown’s senator, Minority Leader John McKinney, told The Hartford Courant that he voted against the bill, saying he was concerned not about what was in the bill, but what was not in the package.

“We are in agreement on many things,’’ Sen McKinney said following the early morning vote Thursday, adding that the package was still short of closing the full deficit for the current fiscal year. “I think this package — although a step forward — is not a big enough step.’’

Sen McKinney and Gov Rell criticized Democrats for not specifically calling for a retirement-incentive program for state employees. Gov Rell hopes to start the program during this fiscal year to begin saving money.

“Everything is going to be on the table, but the retirement plan has to be well thought-out,” Rep Lyddy said, adding that availing certain labor pools to retirement incentives like corrections officials could exacerbate already currently understaffed and overburdened state facilities.

The Democrats decided against the GOP’s suggestion to extend hours of alcoholic beverage sales at the state’s two Indian casinos, but they did include Republicans’ proposal to reduce lottery agents’ commissions from five percent to four percent, making it the lowest commission paid to retailers by any lottery in the United States, according to a lottery industry organization.

The Democratic plan also includes Republican proposals to eliminate deputy commissioner positions, cut some deputy warden slots, and expand the state’s returnable bottle deposit program to include water bottles.

In the end, Rep Lyddy said he was happy to see the necessary collaboration with GOP representatives to get the package passed.

“We all came to consider all ideas, and decide which ones work best for our state in a bipartisan manner,” Rep Lyddy said. “I hope we will continue to work together as we continue to address budget deficiencies for the upcoming fiscal years.”

The Associated Press contributed to this story.