Lawmakers Return To Capitol, Rell Releases Budget Plan

By Susan Haigh

Associated Press

HARTFORD  — Gov M. Jodi Rell is calling for a 25 percent cut to the state’s public utility tax, a move she says will save residents millions of dollars on their electric and gas bills.

The proposed 25 percent reduction was included in Rell’s budget plan Wednesday, along with a call to phase out the estate tax and eliminate the corporate surcharge and car property taxes.

Lawmakers opened the legislative session Wednesday morning with the budget front and center. Officials are debating how to address the year’s surplus, which is estimated at $537 million.

Rell delivered the annual State of the State address at noon, her first address as a candidate for governor. She called for the creation of a state Department of Energy, which would focus on energy planning and research.

This year’s session is a short one, just under 12 weeks. Lawmakers, who are also up for reelection in November, have already announced their intentions to tackle numerous nonbudgetary issues such as the high cost of electricity and fuels, tougher laws against sexual predators, state contracting reform, additional ethics reform measures and even some changes to the contentious campaign finance reform bill that passed in special session.

“It’s going to be very challenging,” said Senate President Pro Tem Donald E. Williams Jr, D-Brooklyn, last week. “But even though it’s a short session, it’s still three months and there’s certainly going to be the opportunity to move the state forward.”

The fate of the surplus is expected to take center stage this session. Democrats and Republicans have embraced the idea of setting aside at least some of the money for the underfunded teacher’s pension plan.

There is, however, disagreement on whether to pass a constitutional amendment requiring that the fund be fully funded. The fund’s assets are estimated at $11 billion and liabilities are projected at $16 billion, officials say.

There is also bipartisan agreement to deposit some of the money in the state’s Rainy Day Fund, which is short by approximately $800 million. But there are myriad ideas for how to handle any remaining money that might be available.