When Gov. Dannel Malloy talked about “sharing the pain,” it was clear he anticipated howling over his plan to solve the state’s multi-billion-dollar budget problem.
When his advisers rolled out details early on proposed departmental mergers and the state’s largest tax increase, it was clear they were trying to manage the negative reaction.
But by the time Malloy finally delivered his budget speech, those feeling the pain — which is roughly everyone with a pulse — were in full throat.
Some proclaimed the sky is falling. Leaders of the state employee unions did it in classic political-speak, calling the plan “challenging” but also indicating they planned to fight to hold on to what they had. Others, like National Federation of Independent Business State Director Andrew Markowski, went right to the overheated rhetoric, calling Malloy’s plan a disaster for small business. Democrats were concerned about the impact of cuts on their constituents; Republicans said there weren’t enough cuts. All are appropriately posturing to get as much for their constituencies as possible. That’s how the system has always worked. And that’s part of what Malloy is trying to change.
Make no mistake: This is a governor who sees very clearly the problems and the tough road that lies ahead.
Yes, business is being asked to pay a price that likely will fall unevenly. That’s unfortunate but that’s the nature of the deep trench we’ve dug through years of not making tough choices. There’s room to debate the wisdom and economic impact of the inheritance tax, the graduated income tax steps, the impact on hospitals or many other individual pieces of the plan.
But in the larger picture, Malloy has signaled that he understands that encouraging business growth is vital. In large part, he resisted the populist calls to whack business tax credits and exemptions. Could he have done more? It would have been nice, but his hands are largely tied by budget realities.
He chose to send a signal with his “First Five’’ approach to economic development, swinging for the fences in an effort to hit home runs rather than being content with funding local singles hitters who might grow into heavy hitters. It many ways, it’s a one-time grandstand move. But such grandstand moves are what make headlines beyond the state’s borders where the presumptive targets live.
Certainly his call for $2 billion in state employee concessions is a similar Mighty Casey-like swing for the fences. His plan has detail and is rational. His leverage, however, seems questionable and his Plan B layoff threat seems fuzzy. Time will tell if he, like Mighty Casey, strikes out.
We wish he’d taken a similar approach to program spending. A broad-brush 5 percent cut of all entitlement programs would have sent a clearer message than a nickel-and-dime approach that rests on restricting X-rays and dental visits for the elderly poor. Yet we’re willing to delay judgment again here. That kind of draconian action is a good thing to have in reserve should he be unable to land his savings in employee compensation.
Malloy gets top marks for delivering a plan that adds up without the smoke and mirrors of the Rell years. The question now is whether the legislature heard the message and has the resolve to approve such a plan. We think they should heed Malloy’s puckish advice — pass the plan quickly and blame him. We suspect, however, a messier pitched battle looms.
For us, the key words in Malloy’s speech were these: “From this day forth, state government will exist to help create jobs, not just to perpetuate itself.”
That is indeed the road others have not taken and it is the road that can lead Connecticut to a better day.
