- February 20, 2018
- Connecticut Voices for Children
- Ray Noonan, Lauren Ruth, Ph.D., Ellen Shemitz, J.D., Karen Siegel, Camara Stokes Hudson, Nicole Updegrove, and Jane McNichol, J.D.
Connecticut’s long-term fiscal health depends on an economy that benefits all families, businesses, and communities. To achieve this objective, the state needs a strategic budget that balances investment with fiscal responsibility. In this report, we find that the Governor’s latest budget proposal would move Connecticut away from these goals. Under the Governor’s plan, the Children’s Budget, the share of state spending devoted to children, would drop to 27.2 percent, a historic low, down from 27.8 in the budget approved last November.
The Governor’s budget includes significant cutscompared to the biennial budget approved by the General Assembly last October. The proposal would reduce spending in health and human services by 3.9 percent, K-12 education by 3.3 percent, early care and education by 2.6 percent, and higher education by 1.7 percent. The report warns that fixed costs (pensions, debt service, and retiree healthcare), although slightly lower than in the previous year, will continue trending upward, potentially further eroding these programs.
In addition to the present budget cuts, the Governor’s budget fails to address the impact of four fiscal restrictions inserted into the budget implementer during closed-door negotiations. The combination of a newly defined spending cap, a bond cap, a volatility cap, and a bond lock diminish this flexibility, tying the state’s hands and making it more difficult for Connecticut to make the strategic investments necessary to promote equitable opportunity and inclusive economic growth.
The report calls on the General Assembly to prioritize repealing or amending these fiscal restrictions.Furthermore, we urge policymakers to modernize the state’s revenue system, eliminating loopholes and broadening the tax base, and to invest in Connecticut’s future, with a focus on child care, education, and healthy child development.
In CTViewpoints, Ellen Shemitz writes: The long-term fiscal stability and health of our state depend upon economic growth that affords shared prosperity to families, businesses, and communities. This kind of growth can only occur in a state that has a competitive business environment, a prepared workforce, a commitment to race equity and a fiscally sound state government.
From CT Viewpoints: Connecticut is poised for a serious debate over the size and role of its future government as it prepares for a new legislative session in February and a new business-led economic commission due to issue its report on March 1. How should the state view the options during this historic debate?
The most prosperous states are anchored by an educated and healthy workforce and offer opportunities for people to innovate and contribute. Moving into the 2018 statewide elections and subsequent governor’s administration, Georgia leaders can seize a golden opportunity to chart a better economic course. People-Powered Prosperity details a new vision for how state lawmakers can pursue that strategy and ways they can responsibly pay for it. The report outlines a public investment plan aimed at four strategic goals, which include eight specific policy recommendations such as targeted funding hikes for public schools and an ambitious ramp-up of assistance to help families afford child care. We also present a case to show how Georgia can afford to raise $1 billion in new annual revenues as a meaningful down payment on the strategy, a shared investment of reasonable scope.