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Questions Linger On Budget Revision's Impact

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Following Governor Dannel P. Malloy's announced revisions to the Executive Order Resources Allocation Plan on August 18, representatives from Newtown's legislative delegation offered input on the potential impact Newtown could face from state budget actions.Connecticut Mirror.Budget Proposals AplentyConnecticut Mirror, the House Democrat's August 23 proposal would increase Newtown's Education Cost Sharing Grant reimbursement by roughly $80,000 to roughly $4,973,000 instead of cutting it by $4,893,000.A 'Shameful Abdication'

An original Executive Order Resource Allocation Plan was announced in June.

A subsequent release from the state detailed changes in a revised plan restoring $40 million to private, nonprofit health and human service providers, prioritizing education funding to communities with the highest student needs by holding harmless the 30 Alliance Districts, and $60 million of other adjustments that must be made to ensure that the state lives within its limited means under the executive order.

In the executive order Newtown would lose $4,893,944 in Education Cost Sharing (ECS) grants, and the town in total would lose $7,111,707 from all state grants, as reported by the

According to the state, the revised plan and municipal aid estimates would be the basis for state spending for Fiscal Year 2018 if the state budget is not enacted.

"In the absence of an adopted budget from the General Assembly, my administration is reallocating resources to pay for basic human services, education in our most challenged school districts, and the basic operation of government," Gov Malloy said in the release. "The municipal aid that is funded as part of this executive order reflects the nearly impossible decisions Connecticut must make in the absence of a budget. It will force some of our municipalities - both large and small - to make similarly difficult choices of their own."

In order to restore $100 million, the administration made the following changes, according to the state:

*Allocating the Special Education Excess Cost Sharing Grant at approximately the Fiscal Year 2017 levels.

*Providing $1.46 billion in Education Cost Sharing (ECS) grants to the communities with the highest student needs and the greatest reliance on state funding.

*It holds the 30 Alliance Districts harmless and provides a grant equal to the Fiscal Year 2017 level. Newtown is not included among the state Alliance Districts.

On average, 22.24 percent of municipal expenditures are funded with revenue from the state. The 54 non-alliance towns with a greater reliance on state funding, above the 22.24 percent statewide average, will receive a portion their Fiscal Year 17 ECS grant, and the 85 municipalities that have a lower reliance on state funding will receive no ECS grant. A total of 25 percent of the ECS payments will be made in early October, according to the state.

"The bad news is, the governor did what the governor promised to do months ago, and that is unthinkable," said Newtown State Representative Mitch Bolinsky (R-106) the morning of August 23. "The positive news is when and if we ever get to the point of actually having a legislative budget, we get a chance to undo it. So the cuts will not stand. I am advocating for and have been assured we are going to have a hold-harmless situation, particularly with our education reform."

Rep Bolinsky said the situation is unfortunate. While he acknowledged the state's education gaps, he said it should not be addressed by removing funding from 85 school districts that have measures of success.

"That does not represent a closing of the gap," said Rep Bolinsky. "It just dumbs down everything. We have to do a lot to address what is happening in the inner cities.Throwing the money from Newtown at them is not going to address the problems.

"We are working on it and it will be fixed," Rep Bolinsky said later.

The House Republicans, Rep Bolinsky said, have presented "four fully vetted budgets" and are ready to vote. Rep Bolinsky said he believes the House Republicans could come together on August 24 to present a proposed budget.

Meanwhile House Democrats also announced a budget proposal August 23. As shared by the

State Representative Will Duff (R-2) said on August 23 it is clear to him the governor and state Democrats do not prioritize "our children."

"Education is important to a vital and healthy economy," said Rep Duff, explaining that not investing in education has a "snowball effect"

Rep Duff said if education is not prioritized, parents decide to move out of communities, enrollment declines at local districts and universities, and businesses look elsewhere for a trained workforce base.

In the executive order, and in the House Democrat's announced proposal on August 23, Rep Duff said the problem is money is not being dispersed fairly and equally. Rep Duff said the governor is running the state and he wishes the Democrats would allow a vote on the budget.

The legislature, he said, should be in a room until "the job is done." He also said the people of Newtown should be aware that they have a state senator and three state representatives that are working hard on their behalf.

While Rep Duff said there are realities to face, he said he hopes the "other side is not that greedy where they would take all of our money away."

After the announcement about the revised executive order, Representative JP Sredzinski (R-112) said in a release on August 18 that the revised plan is shameful as more municipal funding cuts were announced and Legislative Democrats emphasized that a sales tax hike would be inevitable.

"The governor's executive order makes me absolutely livid, especially because this is the exact scenario I desperately wanted to avoid," said Rep Sredzinski. "Connecticut families and businesses have been demanding a taxpayer-friendly budget since January and they assumed their legislature would be doing that for them. Instead, those same families and businesses will now have their lives negatively impacted by severe cuts to core government services, their children's education, and state programs for those in need. I want to stress that this did not have to happen; it is the expected consequence of failed leadership and a refusal to debate the no tax-increase, balanced budget that Republicans had advocated since April."

Rep Sredzinski also said in the release the Democrats have "summarily ignored and shut out" the Republicans from the process.

"Connecticut's sluggish economy over the past couple of years has shown that tax increases do not work and a sales tax would only hurt the businesses that urgently need a better economic climate," said Rep Sredzinski. "This is very disappointing to hear and I will reiterate that I will not support a budget that increases taxes whatsoever."

State Senator Tony Hwang (R-28) also released a statement following the announcement on revised executive order.

"What we have here today is nothing more than a shameful abdication of responsible leadership," said Sen Hwang. "All of the towns in my district and many other fiscally responsible ones are to receive absolutely no funding from the state to educate our children? Again, Governor Malloy is looking to make towns pay for his total mismanagement of the finances of Connecticut. This is shameful and irresponsible."

Sen Hwang went on to say the state needs a "process that is predictable, sustainable, and transparent."

"The worst part is that Republicans have provided solutions to our budget crisis and in fact we have offered Connecticut residents a fair and equitable Education Cost Sharing formula," said Sen Hwang. "Now, as a result of the restrictions imposed by the Democrat passed union deal, we have stooped, as predicted, to punishing children and our valued educators. We have also dramatically cut municipal aid - and that will raise our local property taxes. As a taxpayer, and as a Connecticut citizen, I am outraged by the lack of responsible leadership in the governor's office and the lack of proactive leadership from democrat lawmakers."

Like Rep Duff, Sen Hwang also said he would like his Democratic colleagues in the legislature to present the people of Connecticut with a budget, "so that we can finally work together to move our state forward."

First Selectman Pat Llodra said August 23 that she is awaiting the outcome of a planned budget session at the statehouse, and has yet to take any further executive action in anticipation of further state revenue reductions.

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