Coutu Promotes “No Tax Increase” Budget, Urges End to Wasteful Spending

HARTFORD—Rep. Christopher Coutu joined House and Senate Republicans recently in unveiling an alternative balanced budget that eliminates substantial tax increases proposed by Democrats while calling for concessions in health care and pension benefits from state workers that would save $662 million.

What’s more, the “No Tax Increase” budget described at a Capitol news conference recently preserves vital programs and services at 2007 funding levels, and it greatly reduces government costs through agency mergers, retirements and salary and benefit concessions, Coutu said. The two-year spending plan would not reduce municipal aid, and there’s no reduction in education funding to any town. Also, it restores the $500 property tax credit Democrats eliminated recently in their tax-heavy budget plan.

“Put simply, it was time to take a stand,” Coutu said. “Residents of my district, and the state for that matter, already pay enough taxes. I’d like to avoid another tax increase—particularly in this economy.”

Super-majority Democrats expect Connecticut taxpayers to foot the bill for their inaction to the tune of $3.3 billion—the largest tax increase in the history of the state.

“I think folks who control the Capitol rushed their plan, opting first for knee-jerk tax increases without hunting for cost-cutting measures the general public has called for,” Coutu said.

“This economic crisis has provided us with the perfect opportunity to reinvent Connecticut’s government,” he said. “I think our proposal is the launching plan to do just that.”

Republicans balanced their budget by combining state agencies, rolling back spending levels and offering state workers early retirement and bringing state employee benefits more in line with the private sector.

Coutu said he’s ready to work with Democrats and Gov. M. Jodi Rell to produce a two-year budget Connecticut can afford, and one that won’t drive more businesses out of state or raise taxes.

The highlights (download the presentation here) of the Republican alternative are:

• Early retirement to save more than $285 million;
• State worker concessions for salary, health care and pension benefits that save $662 million;
• Folding 23 agencies into six and implementing a hiring freeze to reduce overhead costs. Two more agencies would be merged into the General Fund;
• Overhauling the higher education bureaucracy that duplicates services and drives up tuition for families struggling to pay for college;
• Preserving school and municipal aid;
• Using the Rainy Day Fund for what it was intended – fiscal distress;
• Imposing $900 million in hard cuts;
• Restoring $25 million in municipal aid cut by Democrats and the $500 property tax credit for families earning as little as $46,000;
• Engaging private companies that can perform duties such as state park maintenance;

“The way I see it, legislators from both sides of the aisle should consider all responsible options for spending reductions and creating efficiencies,” Coutu said. “That’s why I sought public office.”