Rep Lyddy Generally Pleased With Outcome Of Legislative Session

By John Voket

Newtown’s State Representative Christopher Lyddy was pleased with the 11th hour passage of a state budget proposal that he said will deliver no tax increases, no cuts in municipal aid or education funding, and on a more personalized scale, will provide a decrease for most residents’ electric bills by an average of $60 a year.

The plan, approved by the state Legislature prior to the constitutional adjournment date of May 5, includes $170 million in spending cuts across a host of state agencies and hundreds of millions of dollars in savings from a shorter term and lower interest rate on the issuance of $956 million in Economic Recovery Bonds (ERBs).

“No tax increases and no cuts to town aid in a balanced responsible budget can come at no better time and a break on electric bills is a winning equation for state and local taxpayers,” Rep Lyddy said. “In the face of this economic crisis, the Democrats and the governor came together on behalf of all residents to balance our state budget with a combination of responsible cuts and the preservation of important services such as education and local town aid.”

Republicans, however, claim the spending plan relies on short-term fixes and does nothing to tackle billions in future deficits.

“This is not a change in the way we do business,” said Senate Minority Leader John McKinney, R-Fairfield. “In many ways it is business as usual.”

According to Associated Press reports, the one-year budget was negotiated between the General Assembly’s majority Democrats and Republican Governor M. Jodi Rell in recent weeks and finalized Wednesday, the final day of the 2010 legislative session.

“No, it’s not perfect, but we’ve done a darn good job for the residents of this state. We can hold our heads up high and say we have saved people,” said House Majority Leader Denise Merrill, D-Mansfield, who received a standing ovation from her fellow Democrats.

The plan does not raise additional taxes or cut state aid to cities and towns. It retains funding for everything from dental care for the elderly and disabled, and libraries and courthouses across the state.

Earlier in the evening, Gov Rell and the two Democratic leaders of the General Assembly announced they had reached an agreement on a revised budget “that fully balances the budget without raising taxes, cutting municipal aid, or harming needed social services.”

None of Gov Rell’s GOP colleagues in either the House of Representatives or Senate voted for the plan, however. The minority Republicans dropped out of the budget talks on Saturday, claiming the agreement does not address the state’s long-term fiscal problems.

Connecticut is facing large deficits down the road — $3.8 billion in 2012 and $3.7 billion in 2013.

The 2011 budget, which takes effect July 1, was originally approved in September as part of a two-year plan. It has a $2 billion hole — $1.3 billion that was supposed to be filled with borrowed money and a $700 million deficit that has developed since September.

To balance the budget, the compromise plan delays a second $100 million payment to the state’s employee pension fund, and relies on improved state tax collections and anticipated federal economic stimulus funds. It also cuts $171 million in state spending, sweeps an energy conservation fund, and borrows nearly $1 billion.

Those bonds will be paid off by continuing a surcharge on electric bills for the next eight years. An average ratepayer is currently paying $7.50 a month. Under this plan, they would pay a reduced surcharge of $5.03 a month.

“What we did with the Economic Recovery Bonds was to help reduce the budget deficit while protecting residents from utility companies who didn’t want to pass on new-found savings to their customers,” Rep Lyddy said. “In addition, we created a new Green Loan Fund that reinforces our commitment to creating green jobs and energy efficiency.”

The surcharge to pay for investments in energy infrastructure was originally supposed to expire for Connecticut Light & Power customers in July, and on future dates for United Illuminating and municipal electric company customers.

In addition, families caring for an elderly person at home now have an alternative to entering a much more expensive nursing home setting. Seniors will see a cost reduction of up to $300 per month for certain home care services that will save taxpayers millions of dollars over the long term. AARP has endorsed the Home Care Program.

Senator Eileen Daily, D-Westbrook, co-chairman of the tax-writing committee, said lawmakers are hopeful the state can ultimately reduce the nearly $1 billion borrowing if the state’s economy continues to show signs of improvement.

The plan does not include the governor’s proposal to allow Keno, a lottery-type of game, in bars and restaurants. There is also no additional concessions from state employees or an early retirement plan that was proposed.

Rep Lyddy’s legislative agenda included a successful bill he sponsored that will create a new online searchable state spending and budget database. The bill to foster greater accuracy of information and transparency in state expenditures passed the House of Representative on a bipartisan vote.

Anyone from the public would have online access to detailed information on state spending.

“Public scrutiny breeds more analysis of public policy and accountability. We must continue to provide greater and greater access to state government spending,” said Rep Lyddy.

Creating Jobs

He also backed the proposed Act Concerning the Recommendations of the Majority Leaders’ Job Growth Roundtable (HB 5435).

“Connecticut has lost more than 101,000 jobs since the recession began in 2008 — six percent of the state’s total workforce,” said Lyddy. “To recover economically we must be proactive and create jobs. It has to happen now.”

Rep Lyddy said that for the past 20 years the state has been last in the nation in job creation.

The Job Growth Roundtable’s recommendations include:

*Investment in all stages of business growth

*Assistance to Connecticut businesses in exporting

*Loans and tax incentives targeted specifically at small businesses

He also has sponsored a bill that places restrictions on the siting of new telecommunications towers and penalizes telecommunications providers who submit deceptive applications. The bill passed the House of Representatives unanimously.

“The Connecticut Siting Council has been approving more than 90 percent of cell tower applications for too long,” said Rep Lyddy.

In addition to mandating that the Siting Council consider alternative technologies instead of cell towers, the bill also empowers the Siting Council to punish telecommunications companies that submit deceptive applications in order to give that money to opponents for payment of legal fees.

The bill also requires the council to consider public health and safety issues and to give priority to regional plans suggested by towns. Additionally, the bill forbids the placement of towers within 750 feet of schools or day care centers unless no other safe site is available.