Republicans Unveil Plan for Balancing State Budget

The following is a release from the office of state Rep. John Hetherington.

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State Rep. John Hetherington along with the rest of the House Republican caucus unveiled their 2011 budget Wednesday 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.

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. In addition, the plan establishes a $25 million small business revolving loan fund and eliminates the Business Entity Tax.

Rep. Hetherington said, "We can't ignore fiscal year 2011 that begins in two months, and we need a plan that cuts expenses and builds revenue by helping more people earn a paycheck rather than raising taxes on our overburdened citizens."

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 to shed 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 unemployment rolls.