Rep. Hetherington: "Deep Concern" About Malloy's Budget

(Editor's Note: The office of State Rep. John Hetherington issued the following statement in response to Gov. Dannel Malloy's proposed budget, which was delivered on Feb. 16.)

State Representative John Hetherington (R- 125) today expressed deep concern about the levels of taxing and increased spending in Governor Dannel Malloy’s .

The governor’s proposal spends $900 million more over the next two years, according to Malloy’s own budget director Ben Barnes.  This jump in spending brings with it $1.5 billion in tax increases in the first year, from income taxes to sales and property taxes.

“Before we do anything to increase revenue, we must be certain that every reasonable opportunity to reduce expenses has been utilized,” said Rep. Hetherington.  “My general approach is, if necessary, we can look at selective tax increases, preferably on a sunset basis, after we have exhausted opportunities for savings.”

Malloy’s proposals bring sweeping increases to every tax in Connecticut: sales, haircuts, gasoline, cigarettes and many, many more.  This is the suggested solution to a dangerous trend of state expenses increasing far faster than state revenue.  The State has borrowed and taxed itself into a $3.5 billion hole.

“Over the longer term revenues have increased except during severe economic downturn.  In 1991, we adopted an income tax to get out finances under control.  Instead we spent the new money and doubled expenditures over the next 20 years. “

 Malloy’s proposals only include a 0.3% reduction in the State workforce, one building closing, and about $10 million savings after consolidations, which hardly put a dent in the current $3.5 billion deficit.

Rep. Hetherington also offered deeper insight to the types and timing of the tax changes.

“I also worry about taxes that are regressive, such as the sales tax. These taxes will fall hardest on people with the least ability to pay,” Rep. Hetherington continued. “Proposing an unearned income tax credit for low income people ignores the fact there  is large amount of money that goes unclaimed under the similar Federal tax credit. It would be more cost effective to publicize the Federal opportunity and assist people is taking advantage of it.”

“There is no question that we need some serious and swift financial reform.  I would like to see a fiscal approach that promises to bring business to Connecticut and provides incentives to create jobs. If the approach doesn't do this, it fails in a major respect.”