The special interests have returned to Hartford just ahead of the legislators. It is a seasonal rite as certain as the swallows returning to Capistrano or the buzzards returning to Hinckley, Ohio.
The municipalities and the school reformers, for example, say they can’t bear even a flat ration of state aid. They seem to think they are entitled to gobs of new money because they have good things they want to do.
No matter how good and noble your initiatives, the sad fact is the cupboard is still bare. Revenues are down; savings aren’t quite as planned; we’re on the verge of red ink, both this year and next. Only some last-minute evasive action will allow Malloy to keep his promise and stay in the black.
But that won’t satisfy the hordes of lobbyists setting up shop to plead for more cash. And the governor is turning to an old-school fix: sin taxes.
In recent weeks, the governor has made quite cogent policy arguments for reforming the state’s archaic liquor sales system, even if it creates windfalls for those who sell their ‘medallions,’ and for the expansion of the state into online gaming, even if it strains relationships with the tribes that operate the lucrative gaming industry.
Then there is Malloy’s long standing support of red-light cameras. New Haven has long seen dollars in a plan to affix cameras to poles and reap millions in fines as motorists roll through intersections. Never mind that persistent lawsuits and voter resistance have cut into the proceeds in the states that use red-light cameras. If sharp pencils find a way to raise new cash, get out of the way.
There’s nothing inherently wrong with any of these revenue sources. Motorists shouldn’t go through red lights; selling liquor on Sunday is a consumer convenience; gambling has long been recognized as a voluntary tax.
But what’s the message?
It continues to be that Connecticut knows only one way to balance its budget. Only new taxes, this time hidden under a smokescreen of policy, will make ends meet.
That’s the wrong message. Connecticut needs to demonstrate that it also is willing to make cuts. Malloy’s vow to trim spending to close the latest projected $100 million budget gap is a start. But as the special interests circle for the annual game of ‘Let’s Make A Deal’, one has to wonder about the state’s long-term discipline.
We have no quarrel with Malloy using these gimmicks to raise some new cash. We need to look under every rock. But we’ll be disappointed if this new money is used for new programs that dig the hole deeper rather than paying some overdue bills.
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What’s the message, Vol. II?
The state decision to review the Northeast Utilities merger with NStar sends quite a message about how ‘business friendly’ Connecticut really is.
There’s no doubt the state has a legitimate interest in this proposed deal but it whiffed on its chance to play a role. Certainly events have confirmed that taking a hard look would have been a good idea. But NU had every right to expect the state’s decision not to review the deal was final. Now, a year later, the state has jumped back in and will jam through a 90-day review, pressing NU against the wall of a deal-breaking deadline of April 16 for final signoff by everybody involved.
That’s just not fair. The state needs to keep its word. To do otherwise seems the commercial side of double jeopardy.
Even in this period where CL&P has become a four-letter word, the business community notices and CEOs everywhere are reminded that’s the kind of treatment they can expect in dealing with the state.
Avoiding gaffes like this would be a cost-effective way to court business. Instead, the state has reaffirmed its reputation as an over-regulated anti-business environment. Shame on us.
