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The plan ‘Pathway to Sustainability’ proposes savings that roll out over the next five years, mitigating future projected budget shortfalls.
“This budgetary framework marks a different approach to dealing with our seemingly endless cycle of tax increases to cover deficits, followed shortly thereafter by more deficits and subsequent tax increases. This offers a longer horizon for taxpayers and businesses. It is a sustainable, predictable future and we proved we can do this without raising more revenue,” House Republican Leader Themis Klarides said in a press release. “We made the tough choices to enact structural changes, cut spending and stabilize our budget.”
Rep. Ferraro, who is on the budget–writing Appropriations committee said, “For the first time since Gov. Malloy took office our ‘Pathway to Sustainability’ represents a PLAN for the future, not periodic, stopgap measures that inevitably lead to more deficits and tax increases. This plan protects our state’s most vulnerable citizens which was an essential for me to support.”
Staneski said, “Clearly we cannot continue down the current path that we have been taking. Our proposal is truly one that changes that direction by providing stability to our towns AND stops the political hostage holding of those core services that we value—education, mental health, and our hospitals. This represents the sensible governing we were sent to Hartford to champion.”
The Office of Fiscal Analysis estimates that if the current budget practices continue, the state will rack up huge deficits over the next 5 years ranging from nearly $1 billion to over $3 billion annually.
This plan includes a line by line budget to mitigate the fiscal year 2017 deficit, as well as long term structural changes. Together, these policy changes roll out into future years to mitigate ballooning deficits on the horizon. Following 2017, this budget proposal is projected to produce annual surpluses, with a cumulative total of over $1 billion.
The proposed Republican budget claims to restore funding to core social services Democrats have proposed cutting this year, while also making needed cuts and implementing new policies that generate long-term savings. If implemented as planned the budget would in theory:
– Restore education funding for towns and increases statutory grants to municipalities. It would also attempt to preserve funding at 100 percent for car tax capping and implements a robust municipal mandate relief package. Maintains funding throughout the next 5 years.
– Protect funding for social services. In order to preserve the safety net of services for the disabled, those with mental health needs, children, the elderly and those in poverty, this proposal eliminates new proposed budget cuts to direct services.
– Restore support for hospitals and Medicaid reimbursements.
– Create administrative reductions. To enable the state to protect funding for core services, this budget cuts specific, non-service accounts by 12% for a total savings of $157.5 million.
– Force legislative givebacks including legislative salary reductions and elimination of unsolicited mail.
– Make modifications to debt service and a cap on state bonding.
– Provide funds for transportation development with “Prioritize Progress,” a no tolls/ no tax increases plan.
– Implement long-term structural changes to the state budget including mandatory voting by the legislature on labor contracts, overtime accountability protocols, as well as caps on spending and bonding, and many more, detailed in the attached document.
– Price out savings from changes to unionized state employee health and pension benefits, to offer an alternative to layoffs should unions come to the negotiation table.
For more information about the ‘Pathway to Sustainability’ budget plan visit: http://fiveyearbudget.com/.