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If you find a stranger in your home over the next few weeks fumbling through couch cushions for loose change there's a good chance it could be a desperate state legislator.
As we edge closer to the end of the legislative session — scheduled for June 7 — it's becoming clearer that lawmakers will be unable to solve Connecticut's fiscal crisis without major tax increases.
Democratic and GOP state lawmakers unveiled new or revised budget proposals last week that aim to close a two-year, $5 billion budget gap. But all of their plans, similar to those in years past, rely on one-time revenues, cost shifting, unrealistic policy changes or yet-to-be achieved savings that may not come to fruition.
Even if legislators somehow come up with a balanced budget on paper, the likelihood of those projections working out favorably is slim. As we've seen in recent years, budgets adopted by the General Assembly have gone out of balance nearly as soon as they were signed into law.
There is no evidence things will be different this year. The piecemeal budgeting process being undertaken by our esteemed state policymakers is the equivalent of a blind man throwing darts at a dartboard.
What's lacking in any spending plan is a vision for a prosperous future. Neither Democrats nor the GOP have articulated a coherent strategy for long-term economic growth in Connecticut. That is, after all, the only solution to the state's fiscal crisis. Without stronger private-sector growth, Connecticut's tax revenues will continue to falter.
Slash-and-burn budget cutting may be a necessary evil, but how will Connecticut leverage its assets and the tax revenues it can afford to spend into a stronger-growing economy?
It's a question whose answers seem to be out of reach of policymakers.
To make matters worse, some legislators want to further exploit residents' vices to raise new or additional revenues.
Examples of the desperate budgeting process were on full display last week. House and Senate Democrats, for example, included the legalization of recreational marijuana in their latest spending plan even though they likely don't have the votes to support it.
Legalizing pot has been one of the most controversial issues in the state legislature. Earlier this year the issue was declared dead because the measure couldn't get enough support to even get out of committee.
Democrats say legalization could reap $60 million in new tax revenues next fiscal year, and $180 million the following year. That's a big pot of gold, but we wonder if those projections are a bit rosy. We also oppose recreational pot legalization, especially in the context of a desperate search for new tax revenues.
Meantime, Republicans pitched their own revised budget last week that included $2.2 billion in savings over two years from state employee unions. That's a far bigger number than the $1.57 billion Gov. Dannel Malloy has been trying — unsuccessfully so far — to extract from state workers since February.
While we agree that state labor unions must be asked for significant givebacks, we aren't sure if achieving $2.2 billion is feasible. And if we can't reach that number, what happens to the GOP's spending plan? Can we realistically lay off enough state workers to meet the needed savings in such a short period of time?
The answer is most likely no.
Finally, Malloy also released a revised budget last week that may be the most realistic. It relies on drastic cuts to most cities and towns, new taxes on nonprofit hospitals' real estate, privatization of social services, among other cuts.
No matter what, Connecticut is about to get another dose of tough medicine. We oppose any major state tax hikes, but also understand that could lead to higher property taxes on the local level or other detrimental effects to the state economy.
There are no easy answers, and without a well-articulated, long-term roadmap that directs us toward a more prosperous future, solutions will be even harder to grasp.
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The Hartford Business Journal 2025 Charity Event Guide is the annual resource publication highlighting the top charity events in 2025.
Hartford Business Journal provides the top coverage of news, trends, data, politics and personalities of the area’s business community. Get the news and information you need from the award-winning writers at HBJ. Don’t miss out - subscribe today.
Delivering vital marketplace content and context to senior decision-makers throughout Connecticut ...
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