GREENWICH DELEGATION: SUPPORTS COMMON SENSE TAX DAY BUDGET

Erases $736 Million 2011 Deficit – No Taxes, Smaller Gov’t -$74 Million to Create Jobs

HARTFORD – Today being Tax Day, April 15th, the last day Connecticut residents have to mail in their tax bills, State Reps. Livvy Floren, Lile Gibbons and Fred Camillo along with the rest of the House Republican caucus unveiled their 2011 budget that erases the $736 million deficit for 2011 without raising taxes by consolidating government agencies, and shrinking the public workforce and commits $74 million to stimulate job growth.

The balanced plan preserves municipal and school aid, and sets aside $74.5 million to stimulate job growth. Companies that hire the unemployed can earn $17.5 million in tax credits, and the plan establishes a $25 million small business revolving loan fund, and eliminates the Business Entity Tax.

“This proposal is fair and balanced. We eliminate the budget hole without raising taxes and without gutting social service programs. Every household in Connecticut has faced difficult financial choices and has made the tough decisions we are confronting today,’’ said Rep. Lile Gibbons, lead republican on the Human Services Committee.

“We cannot leave for the session in May knowing there is a $736 million deficit for next fiscal year which begins on July 1st. If we ignore the problems now, they will become insurmountable. It would unconscionable to leave this looming problem until after the November elections,’’ Rep. Fred Camillo, member of the Appropriations Committee said.

The Common Sense plan offers a flexible menu of choices to create savings from concessions that have all been validated by the non-partisan Office of Fiscal Analysis.

The hallmarks of the savings:
• $58 million in line item cuts to 2009 levels;
• $64 million in early retirement for state workers;
• $10 million in state agency consolidations;
• $6.4 million to shed state office leases;
• $20 million in privatization of state functions;
• $150 million in state worker concessions, including wage freezes, furlough days and health care;
• $3.8 million in legislative pay cuts, elimination of franked mail and travel.

The budget also makes significant investments in job creation and retirement security:
• $200 million will be paid into the state employee pensions;
• The Business Entity Tax is eliminated to save companies $32 million;
• A Small Business Revolving Loan Fund of $25 million is created;
• Tax credits of up to $17.5 million will be available to companies that hire off unemployment rolls.

Rep. Livvy Floren added, “This Common Sense plan achieves the common sense ideals we have advocated for since the beginning of the year. The mantras of “Not spending more than you have” and “only borrowing what you can afford to pay back” need to be set in stone when it comes to crafting a budget.”

The House Republicans along with the Greenwich Delegation have called upon the Democratic supermajority to immediately come together as they did on April 13 and work toward a reasonable solution.