 | | 7/29 | | | 7/29 | | | 7/29 | | | 8/2 | | | 8/5 | | | 8/5 | |
|
|
More
|
|
|
|
Goverment Updates |  | |
Budget Press Release
from Representative David A. Baram
With Governor M. Jodi Rell's signature last week, a bipartisan agreement with the Legislature was completed that balances the state budget through fiscal year 2011 with no tax increases, no cuts in municipal aid and a decrease for residents' electric bills by an average of $60 a year.
The plan, which was approved by the General Assembly prior to the constitutional adjournment on May 5, includes $170 million in spending cuts across a host of state agencies and a reduction of $300 million from a previous borrowing plan. There is also hundreds of millions of dollars in savings from a shorter term and lower interest rate on the issuance of $956 million in Economic Recovery Bonds (ERBs).
During this tough economic time, we were able to finalize a budget with the Governor that keeps essential funding in place without increasing taxes. Passage of this budget adjustment is a major step in the right direction as we continue to work toward economic recovery.
Preserving and restoring programs and services for seniors was also an important consideration when we decided to support this budget in fact AARP endorsed the budget plan. For example, municipal matching grants for dial-a-ride transportation were preserved, and prescription drug coverage for seniors through ConnPACE and Medicare are maintained.
In addition, as an alternative to entering a much more expensive nursing home setting, seniors will see up to a $300 per month cost reduction for certain home care services that saves taxpayers millions of dollars over the long term. The existing 15% cost-share for home care clients is now reduced to 6%. Also, the Alzheimer's Respite Program which prevents or delays nursing home placement and saves the state money in the long-term is funded
There are no cuts to aid to cities and towns, which includes funding for education, road and bridge repairs as well PILOT (Payments in Lieu of Taxes) money, which all relieves pressure on local property taxes. PILOT funds are sent to towns that host state owned property that would otherwise be subject to local taxes if it were privately owned.
The ERBs have an eight year term at a low interest rate of 3% and will be paid off by using a small portion (one third) of two charges (Competitive Transition Assessment - CTA, and the Energy Conservation and Load Management - ECLM) on electric bills. As part of the budget, customers will see the CTA charge reduced by 2/3 with a net savings of about $5 per month for most electric customers. As the economy continues to recover and revenues grow, the ERBs can also be paid off earlier.
What we did with the ERBs was to help reduce the budget deficit while protecting utility customers by ensuring that cost savings on the surcharge are actually passed on to consumers. To help offset the use of a portion of the ECLM charge, we established the Connecticut Green Loan Fund with $18 million in previously authorized bonding which will be used to create up to $70 million in loans to spur growth in the energy conservation industry.
One year ago, the state was facing an estimated $10 billion budget deficit. Today, we have a budget that closes the deficit for fiscal year 2010 and also eliminates the 2011 shortfall. In fact, the state comptroller has predicted that the current fiscal year 2010, which ends June 30, will likely finish with a small surplus.
In the face of this economic crisis, legislative Democrats and the Republican Governor came together on behalf of all residents to balance our state budget with a combination of responsible cuts and the preservation of important services. No tax increases, no cuts to town aid and a break on electric bills is a winning equation for state and local taxpayers alike.
David A. Baram
5 Warbler Circle
Bloomfield, Ct. 06002
243-3041 - h
242-5555 - w
baram4@aol.com
|
|
|
|
|
