Date: Fri 11-Jun-1999

Publication: Bee

Author: CURT

Quick Words:

edink-state-debt-budget

Full Text:

ED INK: Riding High On Our Debts

The new state budget approved by both the House and Senate last Friday in

Hartford is sending $6.7 million in state aid to Newtown -- about $300,000

more than had been expected. A swelling state surplus and a generous spirit

among the politicians in Hartford combined to produce more state aid for

schools and towns, $273 million in tax cuts, and $50 rebate checks for most

state residents.

While it is nice that Newtown will be getting a little more state aid than

expected, we are concerned by the way money is spilling out of Hartford these

days. The strong state economy and the robust stock market combined to

generate tax revenues that produced a state budget surplus of over $550

million. There has been so much talk about the surplus, most people think that

the state is operating in the black. Nothing could be farther from the truth.

Connecticut is $9 billion in debt; $2,800 for each man, woman, and child in

the state. Ten percent of the state budget is used to finance that debt. While

the economy is strong and surplus revenues continue to roll into state

coffers, making principal and interest payments is not a problem. So most of

the surplus is being directed toward new state spending for payroll, computer

work, additional pay for health care workers serving welfare patients, lawsuit

settlements, and the redevelopment of Hartford's downtown. (The money

redirected to the people in tax cuts and rebates is just 20 percent of the

surplus.)

You would think that state budget makers would take a cue from household

budget makers: when you get a little extra cash, you pay off the people you

owe. Connecticut will not always be so flush, so it would make sense to start

paying down our debt so that in future years Hartford isn't sending us tax

surcharges to pay the bills instead of tax rebates.