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Back in February Republican Gov. Jodi Rell presented her
state budget plan shocking the Democrat-controlled legislature (not to
mention her fellow Republicans) with a proposal to hike the state income tax
across the board to finance a major boost in state education aid to
municipalities. Democrats pondered the proposal for weeks, ruminating about
whether such a tax plan was fair and how other state needs would be met.
Late last week, the Democrats unveiled their own state budget plan hoping to
steal back the media spotlight from the governor. Paying homage to the
age-old cliché "the governor proposes and the legislature disposes", the
Democratic budget snubs virtually all of Rell's big ideas.
Democratic leaders say while the governor wants to hike the income tax for
everyone, their alternative, crafted around a graduated income tax formula,
would actually lower taxes for 90% of taxpayers while increasing the tax for
the rich--boosting the rate from 5% to nearly 7%--actually a 40% increase on
those earning more than $250,000 a year.
Democrats applauded their own budget and tax package and
a few of them made noises about showing off the power of their party's new
"supermajority" in the legislature. But top Democratic leaders immediately
said they're ready to negotiate with the governor and Rell wants to bargain
as well.
What does all this mean to you? First of all, none of these proposals is
written in stone. Second, it means the season of palavering has begun.
Dancing with the budget has been an annual ritual ever since Connecticut
state government has had a Republican governor and a Democratic legislature.
You could take it back to 1991 when independent (i-e fiesty) Gov. Lowell
Weicker ruled and pushed through the state income tax--but that was more a
rugby scrum than a dance.
This year's budget is being shaped in a time of surplus when the state's
rainy day fund is at a record level, so the "dance" will be choreographed
around political interests not crisis conditions.
It usually begins with behind closed doors meetings between the governor and
legislative leaders from both parties. If negotiations go well, the players
smile and tell the media "we're making progress." If Democrats refuse to
budge on tax and spending points the governor dislikes, she'll shake her
head and complain about "irresponsible" fiscal attitudes.
Things will get more interesting as legislative adjournment nears. Sticking
to the "dance" analogy, the big "prom" must end by midnight June 6th. If no
accord is reached, special sessions ensue to achieve a budget by June 30th
when the fiscal year ends---and a new budget is needed.
As the negotiating intensifies, lawmakers and state budget officials may go
into round-the-clock talks with heavy trading back and forth on spending
priorities and tax formulas. Since both Rell and the Democrats proposed
increases in the state income tax, it's very possible the final accord will
feature some variation that both sides can live with.
Just like a high school dance with attendees who may wish they came with
different dates, the "partners" in these talks from time to time get teed
off, stalk out of the room, and warn that budget disaster or political
gridlock is nigh. However, tempers usually cool quickly because no one wants
to look foolish or intransigent to the voters who elected them.
If all goes as expected, after the silly tiffs, horse trading, and political
grandstanding end, it's likely Gov. Rell and her sometimes adversaries,
sometimes "dance partners" on the Democratic side will announce a final
compromise. Then everyone at the State Capitol Hop can join in a hearty
rendition of "Twist and Shout".
Comments or
questions?
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CTReport@crnradio.com
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