Local Legislative Contingent Reacts Along Party Lines After Latest Special Session

By John Voket

Newtown’s State Representative, Democrat Chris Lyddy “cautiously” applauded his party’s leadership for their efforts, following Monday’s special legislative session, which he said will save jobs and preserve current funding proposals to cities and towns.

But Newtown’s Senate representative, Republican Minority Leader John McKinney and Representative DebraLee Hovey, who represents one local voting district, both decried the Democrats actions December 21. Rep Hovey said the Democrats efforts amounted to cutting too little too late, and Sen McKinney worried that resulting bonding to close operational shortfalls sets up the state to receive a bond rating downgrade which translates into additional future costs to taxpayers for all borrowing.

Lawmakers passed a Democratic plan to reduce the state’s latest budget deficit, even though Governor M. Jodi Rell and her fellow Republicans claimed it falls far short of what is needed to balance the books. Sen McKinney said the brief length of debate telegraphed to him that Democratic lawmakers came to the table with their minds made up.

“I’ve learned that the length of the debate being presented by the majority is directly related to the lack of quality in their product,” Sen McKinney said.

The proposal by the majority Democrats, approved Monday along mostly party lines, still leaves the state with a $137 million deficit — and the governor with the task of deciding how to cover the remaining red ink.

Democrats maintain the governor has not done enough to reduce spending within her agencies, such as reducing middle management. They claim the bulk of the deficit can be blamed on overspending by the administration, not just a decline in tax revenues.

“In her original proposal, the governor’s plan would have cost the state in excess of 5,000 private sector jobs. Now, more than ever, we need to focus on putting people back to work and protecting things like funding to municipalities as well as home care and nursing services to our elderly,” Representative Lyddy said in an email response for comments on the session’s outcomes from The Bee. “I cautiously applaud the democratic leadership for their efforts this past special session and urge the governor to sign the package passed last evening.”

Will Rell Sign?

The governor did not say whether she would sign the deficit-cutting plan into law. In a written statement issued after the votes, said she was “profoundly disappointed” and said state taxpayers have a right to be angry with the situation.

“They are faced with a bill for a state government that has become bloated and unaffordable,” Governor Rell said. “Instead of paring back on spending, the majority continues to run from their responsibility.”

Rep Lyddy reacted saying: “The rhetoric, from both sides of the aisle and increasingly from the governor’s office, does not get us any closer to a solution.”

Democrats in the General Assembly passed a two-year, $37.6 billion budget without Rell’s signature in September after a months-long impasse with her. That budget is now about $467 million short.

The figure, however, reflects a decision to scrap a planned $130 million sales tax reduction because of falling state revenues.

The Democrats’ plan reduces spending by $12.4 million, according to the nonpartisan Office of Fiscal Analysis. It also siphons money from various state funds and postpones a planned reduction in the state’s inheritance tax for two years.

Sen McKinney said he was particularly frustrated because Democrats expect the governor to find in excess of $212 million in cuts, after he said that an earlier proposal to do just that was summarily rejected by the majority.

“The default solution is to borrow the money if we can’t balance the budget this year, or retroactively imposing tax increases,” Sen McKinney said. The imminent danger in following that course this year, Sen McKinney explained, will be a likely bond rating downgrade because the state is already on a negative outlook from its rating agency Moody’s for doing the same thing last year.

“There is a limit to the state’s credit card, and the more you run up the balance, the less you have for infrastructure needs — school projects; highway and bridge repairs and other programs the state needs to jump-start the local economy,” Sen McKinney said.

Rep Lyddy countered on this point saying: “In regards to our recent bond rating notification. It’s important to realize that 47 states are currently operating with deficits. We, unlike states such as New York where municipal and education funding is being cut by somewhere around ten percent, have held our towns and cities somewhat harmless. We understand that services to seniors and low-income families are crucial to maintain.”

The freshman lawmaker said the state has basically exhausted most of its options.

“We have taken advantage of short-term savings, long-term savings, and have really used every option available to us to ensure that families are able to continue to support themselves,” Rep Lyddy added. “In short, we have used our lifeboats and now we need to move on to find other cuts and programmatic efficiencies.”

In her post-session statement, Rep Hovey took issue with what she describes as the piecemeal approach to achieving budget stability.

“I really can’t believe that this is the best the Democrats could come up with after all this time,” said Rep Hovey in a post-session release. “We can’t keep chipping away at the deficit, that doesn’t address the reasons we have a deficit. I realize it is difficult but we were elected to make difficult decisions. I wish more of the super-majority Democrats had the courage to do what we were elected to do.”

Democrats also publicly urged Rell to meet with the state employee unions to reach additional concessions, such as delaying a payment to the pension fund. Rell said her staff has reached out to the chief negotiator for the unions.

More Job Concessions Unlikely

While leaders of the State Employees Bargaining Agent Coalition said they are willing to meet with the Rell administration “to discuss real solutions to the continuing economic crisis,” they will not return to the bargaining table to negotiate additional concessions.

Rep Lyddy said he rejects any attempt to “slash and burn our workforce.”

“I do not support the Democrat’s plan to urge Governor Rell to revisit the SEBAC agreement that would defer $100 million into the pension fund,” Rep Lyddy said. “I believe this is fiscally shortsighted and does not achieve the types of cost savings that our state needs at this time.”

He believes the governor needs to sit back down with the union to see if the agreement can be renegotiated. But his Republican colleague Rep Hovey complained, “Their plan includes a measly $12 million in cuts and has no cuts to the state work force.”

Rep Lyddy also praised the restoration of $84 million in cuts to municipalities that was originally proposed by Governor Rell. Sen McKinney agreed that it was unfair to expect towns and cities to bear the brunt of cuts in aid in the middle of an already tough budget year.

“I think reductions have to happen long before towns engage in their budget process so they know what they’re going to get,” he said. “They are relying on those numbers and we have to make sure they get those monies they’ve been promised.”

Sen McKinney said he is hopeful that the “bipartisan agreement” to preserve that funding stream to communities like Newtown remains in place. But he will never say never.

“It could still happen if things get worse,” Sen McKinney concluded.

(Associated Press content was used in this report.)