One thing is certain about the state budget crisis of 2009 — it will extend into 2010.
Hard to believe, but true. Usually incumbents do anything they can to avoid making tough decisions in an election year, but because the decisions necessary to balance the budget in 2009 are so difficult, many of them will roll over into next year like late term papers at the end of the semester.
Ironically, part of the problem stems from a decision in 2008, by leaders of both parties, to forgo making budget adjustments, even though they saw the signs of a growing fiscal crisis. The failure to use this budget crisis as an opportunity to make fundamental change means lawmakers and the governor are resorting to quick fixes to keep things on track.
To fill the massive budget hole, both sides are using one time revenue sources like the Rainy Day Fund, federal stimulus money and swiping cash from special funds set up to pay for existing programs. Anything to avoid spending cuts that lead to sacrifice or tax increases.
The problem with this one shot approach is that it ends up creating a bigger structural gap in the overall budget. It’s the government equivalent of relying on an annual performance bonus to maintain a lifestyle your base salary doesn’t support.
That’s what’s happening now. Eager to make the problem go away — if only for a while — Connecticut’s leaders are creating a politician’s worst nightmare ahead of a statewide election year.
Gov. M. Jodi Rell may see it all coming. Even as she stood by her no tax increase until I see big spending cuts strategy, she told Republicans at this year’s Prescott Bush dinner that she didn’t expect to maintain her high approval ratings too much longer. She was there for the income tax debate and watched former Gov. Lowell Weicker’s approval ratings plunge.
Still, the continuing crisis provides an opportunity to make positive change. It’s almost certain that at some point in the coming weeks there will be a call for a bi-partisan commission to consider government restructuring. A task force is usually a reliable way to avoid making a hard decision, but it can also be used to instill courage in legislators.
The most important thing to do when forming a task force is to understand the outcome you are looking for. It’s one thing for a governor to propose merging all the state’s economic development functions, but it’s another if a respected task force recommends the merger and how to do it.
Democrats have been fighting for years to make Connecticut’s tax structure more progressive. They’ve never shown why Connecticut’s current system isn’t progressive enough.
Even in tough times there is always the opportunity to make progress somewhere. Since 2006, there is a growing consensus in state government and in the business community that the state needs to invest heavily in transportation. A goal of any restructuring should be an effort to direct resources away from inefficient programs and toward the agreed upon goal of transportation improvement.
The creation of a commission is usually met with skepticism, but in this environment it could lead to change.
Dean Pagani is a former gubernatorial advisor. He is vice president of public affairs for Cashman and Katz Integrated Communications in Glastonbury.
