REP. STRIPP: TIME FOR COMMON SENSE BUDGET, NOT MORE SENSELESS TAX HIKES

HARTFORD – Tax Day is today, April 15^th, the last day Connecticut residents can mail in their federal and state tax returns, State Rep. John Stripp 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. While Democrats celebrated closing a $400 million deficit in this fiscal year ending on June 30^th by borrowing from next, House and Senate Republicans rolled up their sleeves and proposed a common sense plan for the 2010-11 year. 

Rep. Stripp said, “I call upon the Democratic supermajority to immediately come together as they did on April 13 and work toward a reasonable solution without tax increases, borrowing from future years or raiding current dedicated funds.”

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.

“We cannot leave the session in May knowing there is a $736 million deficit for next fiscal year which begins on July 1^st. If we ignore the problems now, they will become insurmountable. It would unconscionable to leave this looming problem until after the November elections,’’ Rep. John Stripp, 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 for shedding 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 the unemployment rolls.