Residents of this state are facing tough economic times and it could get worse.

House and Senate Republicans on Wednesday said it’s time lawmakers did their part to erase a $300 million budget deficit that’s been confirmed by independent analysts. Republican House Leader Larry Cafero and Senate Republican Leader John McKinney held a news conference where they described the problem.

Both leaders said it’s time for a bipartisan effort to tackle the mounting deficit.

Cafero provided examples of projects around the Capitol where money could have been saved, including replacing expensive marble tile in the Legislative Office Building even though there is no safety issue and installing brand new Liquid Crystal Display screens in hearing rooms.

Cafero talked about the importance of prioritizing projects.

Both McKinney and Cafero said the legislature can’t afford to put off dealing with the deficit as some Democrats have suggested.

Weekly Vodcast: 9-24-08

With the state’s budget deficit looming at over $300 million, House Republican Leader Larry Cafero talks about the ways we can address this problem.

House and Senate Republicans are holding an informational budget forum on Thursday morning, September 25th at 10:00 a.m. in the Legislative Office Building. 

Democrats are apparently not interested in doing anything until November 18th… after the election.

Rep. Denise Merrill, D-Mansfield, co-chairwoman of the budget-writing appropriations committee, said it was “fine” for the Republicans to hold a forum, but the full, Democrat-controlled budget and finance committees will not hold a hearing on the issues until Nov. 18 – after the elections.

“To me, that’s soon enough,” Merrill said.

-Hartford Courant, September 23, 2008

 Naturally, waiting until after the election couldn’t possibly mean that Democrats are planning on solving the problem by raising your taxes.  Right?

Check back at House Rules on Thursday for more from the scheduled budget forum.

Weekly Vodcast: 9-18-08

This morning House Minority Leader Larry Cafero participated in a forum at the Capitol hosted by the Connecticut Association of Realtors.  The discussion also featured Fred Carstensen of the Center for Economic Analysis, Rep. Brendan Sharkey(D-Hamden) and D. Dowd Muska .

The above video captures some of the highlights of Rep. Cafero pointing out the economic troubles that face Connecticut workers, and the burden of taxation on Connecticut residents and businesses.

House Rules, the official blog of the Connecticut House Republicans will be launching weekly vodcasts starting today.

Today’s vodcast by House Republican Leader Larry Cafero focuses on the message from Governor Jodi Rell on the projected budget deficit for next year, and spending.

We can weather this storm, but we need to continue to practice fiscal prudence,” Governor Rell said. “Connecticut can stay ahead of the national economic curve, but only if we make the right decisions. The right decisions do not include an increase in taxes or spending money we just do not have. Our families cannot afford new taxes. We must force government to live within its means – just has families across Connecticut must do each and every day.

-Governor M. Jodi Rell

The next vodcast will be Thursday, September 18th, and will be every Thursday afterward.  Be sure to return every Thursday for a new vodcast on the issues effecting Connecticut.

House Republican Leader Larry Cafero

So, anyone paying attention woke up Saturday morning, August 23rd, to learn that General Assembly has come up with a plan to help thousands of Connecticut families heat their homes this winter funded out of the 2008 budget surplus. At the heart of the Republican energy assistance program was relief for middle class earners who are largely responsible for producing that $75 million surplus.

It is the family of four earning up to $94,000 annually that rarely if ever qualifies for any state aid because they live just north of an arbitrary income level that deserve some help as well. The state’s Rainy Day Fund is full at $1.3 billion and is not going to be touched by the fuel assistance program. Few families could budget for the cost of heating fuel because prices have risen so dramatically.

Just who would fall under that maximum $94,000 figure? It is a police officer and a home health aid with two children, or perhaps two entry level teachers, or a single-income family with one stay-at-home parent. It is a state worker and a spouse paying for college.

It is the epitome of the working middle class in Connecticut.

Republicans expressed doubt that those families earning up to 100 percent of the median income in Connecticut, or $94,000, will ultimately receive fuel assistance. Typically available funds run are targeted for those families who qualify for many other state programs and when the money runs out, it runs out.

There are also provisions to help heat municipal buildings, schools and non-profit service organizations.

We’ll see just who benefits by spring time.

The fuel assistance program received broad bipartisan support in the legislature. One troubling aspect of the initiative, however, was the creation of a yet to be determined process to distribute the bulk of the aid in a contingency fund. Republicans preferred to use existing programs and simply expand the income restrictions to include more families so that the funds are used more efficiently and quickly.

The bulky process requires the governor’s budget office to come up with a plan present it to legislative leaders and inject the legislative process into the mix. It could take months to work out, but we’ll see. The Republican proposal did not spend any more surplus money than competing programs; in fact our comprehensive energy plan would have saved thousands of motorists millions at the gas pump, but the Democrats, once again sad “no.”             

Gambling that the Farmer’s Almanac has it wrong with its prediction of a colder and snowier than average winter is not a responsible position for elected leaders to take. Suggesting that people put on a sweater as the thermometer drops will not help either. It is unfortunate that a sensible energy plan had not been put in place while we had the time this spring rather than just before Labor Day.

We can’t, as Mark Twain said, do anything about the weather, but at least we can try.

• $8.5 million for Operation Fuel to provide emergency assistance to households with income between 151% and 200% of the federal poverty level ($31,800 to $42,400 for a family of four).
• $5 million for Operation Fuel to provide emergency assistance to households between 200% of the federal poverty level and 100% of the state media income ($42,400 to $93,821 for a family of four)
• $6.5 million for municipal grants to assist in heating public schools
• $4 million to provide home heating assistance to residents 62 years of age and older
• $3.5 million for home heating assistance grants to non-profits that provide human services of public health services for the state
• $3 million in additional funding for a rebate program for residential furnace/boiler replacement
• $2 million for rebates to residents that repair or upgrade their existing furnace/boiler to achieve greater efficiencies
• $2 million to change a furnace replacement loan program from low to zero interest. It increases those eligible for the program from 150% to 200% of the state median income (up to $187,642 for a family of four)
• $35 million for an Energy Contingency Account
• $7 million for a new Energy Audit Subsidy Program that provides energy audits to residential customers at a cost of $75
• $2 million for a weatherization program for individuals who qualify for state heating assistance

How to Apply

Individuals can call the state’s 2-1-1 hotline to receive information on who is eligible for various federal and state energy assistance programs and how to apply.

Click above to watch riveting legislative action!

The General Assembly is supposed to vote on energy assistance legislation today.  However, after coming in this morning, it appears that the plan has hit some road bumps in the negotiation process, and the difficulty is lasting into the evening as legislators and staff await the session to convene.

As Brian Lockhart reports at the Stamford Advocate:

House and Senate members were still meeting privately Friday evening over proposed bills to divvy up the $75 million surplus to help low- and middle-class residents, seniors, schools and non profits pay their energy bills this winter.

House Minority Leader Lawrence Cafero, R-Norwalk, outlined the situation during a visit to the capitol press room.

Cafero handed out a convoluted diagram, hand drawn by his staff, which he said outlined the various ways that lawmakers, the governor’s office and her budget staff would be able to review and approve, reject or modify how the funds are distributed before the checks go out.

The diagram, intended by Cafero to illustrate what he considered the absurdity of the situation, was a cross between a map of football plays and a Wile E. Coyote plan to capture the road runner.

“The quickest way possible this could happen is somebody might get some help in late March,” Cafero said, accusing Democrats of trying too hard to control the flow of cash to ensure their individual constituents get some money.

State Reps. Larry Miller and Jason Perillo greeted the best Little Leaguers in New England at the Capitol on Friday, when the General Assembly honored Shelton National Little League for representing the region in the Little League World Series in Williamsport, Pa. Republicans Miller and Perillo, R-113, posed for pictures with the boys, who were greeted with a standing ovation when introduced to members of the House of Representatives. Perillo and Miller, R-122, accompanied the team to Gov. M. Jodi Rell’s office, where the boys presented her with a few gifts as coaches and parents snapped photographs. Both Miller and Perillo represent Shelton.

Six-Point Plan Offers Millions for Fuel Assistance, Small Businesses, Conservation

Thousands of Connecticut families will not be left out in the cold this winter under an energy assistance plan unveiled today by House and Senate Republicans that directs an additional $25 million to insulate consumers from the rising costs of home heating oil, help pay electric bills and combat soaring gasoline prices.

Republicans want to use an additional $9 million of the state surplus to increase the Operation Fuel account to help middle class families earning up to $94,000 a year. Republicans would add $5 million to the Energy Conservation Load Management Fund and offer sales tax breaks for small businesses. Republicans will push their agenda this Friday when the legislature meets in special session to enact fuel assistance programs.

We have the funds available to provide relief for those struggling to heat their homes and businesses, as well as the neediest who are at risk this winter,” House Republican Leader Lawrence F. Cafero Jr., of Norwalk said. “We need to act now.”

Senate Republican John McKinney of Fairfield said, “Energy prices have increased to levels beyond what most families and businesses ever budgeted for. This is the number one issue affecting our economy and how to address this problem in both the short and long-term is one of our state’s most pressing challenges. It is unfortunate that the majority party did not make this a priority during the regular session but I’m pleased that both parties are focused on solutions now. Our proposal will provide relief to the families and small businesses that need it most.”

Under the proposal Republicans would:
• Allow a family of four earning up $94,000 a year to qualify for Operation Fuel assistance;
• Increase tax exemptions for small businesses for the first $500 on electric bills;
• Increase by $5 million the Conservation Load Management Account that rewards conservation efforts;
• Provide $3 million to help struggling families pay their electric bills;
• Cap the gross receipts gasoline tax to hedge against future spikes at the gas pump;
• Fill the Special Transportation Fund deficit of $28 million by using the current Transportation Fund Balance and direct nearly $100 million of the fund to projects that have stalled due to rising construction costs.

Cafero said the proposals are apart from those expected to be offered by Gov. Rell and other lawmakers during the special session that he expects will draw broad bipartisan support.

We want to help to thousands of additional Connecticut families who otherwise would not qualify for assistance because of restrictive income levels. By expanding the program we can reach many more families, seniors and small businesses facing skyrocketing fuel costs,” Cafero said.

House Speaker Jim Amann announced last week that the idea of considering placing tolls on our state highways is off the table, and suggested that House Republican Leader Larry Cafero and other GOP leaders were “proposing” tolls.  This is, of course, nonsense.

What is interesting is that last summer Speaker Jim Amann was perfectly happy to consider tolls on the highways, as well as higher gas taxes which are hurting Connecticut residents and businesses. 

House Speaker James Amann , D-Milford, said Monday he’s willing to consider tolls and increased gas taxes to beef up safety inspections and repairs to the state’s transportation network.

“I’ll support any idea that supports this program,” he said. “Whatever it takes to make our bridges and roads safe.”

 -Waterbury Republican-American, August 7, 2007

But now Amann is against tolls. 

Amann also continues to deflect blame from the Democratic majority for the role they play in Connecticut’s high gas prices.  According to Amann’s July 17th, 2008 press release:

We all know that this is a global problem compounded by a failed national energy policy, and the state is acting to help motorists where we can,” Amann said.

If high gas prices are a global problem that is made worse by a “failed energy policy” nationally, then why is Connecticut paying prices higher than anywhere else in the continental United States?  With a current average price of $4.32 per gallon, this state is paying more than the rest of the nation due simply to state taxes.  Legislative Democrats continue to refuse to offer any relief from them to Connecticut motorists.

The familiar refrain from Democrats is that the gross receipts tax, which Republicans want to cap, goes into the transportation fund to build and maintain roads and bridges.  Unfortunately, this is simply not true.  Roughly 60% of the gross receipts tax goes into the general fund instead.

Today legislative Republicans called on Democrats to join them for a special session to cap the gross receipts tax on gasoline, particularly in light of the announced $22 million budget surplus, but Speaker Amann said he didn’t want to do that because it is the only tax generating revenue for the state.

Just like the man says…  “someone has to pay for it.”