House Republican Press Release

March 26, 2008

Press Office: 860-240-8700

DEMOCRATS GET THE REPUBLICAN MESSAGE: CONNECTICUT CAN’T STOMACH ENDLESS SPENDING

BUT QUESTION WHETHER PROPOSED BUDGET CUTS SUSTAINABLE

HARTFORD – Democrats today tried to take a page from the House Republicans’ successful 2007 No Tax Increase budget today by putting forth a spending plan that apparently won’t increase taxes this year but could lead to massive deficits next years because of built-in questionable savings.

Republicans immediately questioned whether the proposal which includes $189 million new spending, contains no tax increases and claims savings of $110 million in the current budget will work. 

“They are to be commended for finally recognizing that Connecticut taxpayers are already over burdened and that decreasing revenues will not permit additional spending. But if their cuts are not feasible and the budget is not sustainable, we will have massive deficits next year,’’ House Republican Leader

He added, “Although it is belated and obviously comes in an election year, I hope the numbers add up. We will continue to look for additional spending cuts and flesh this plan out,’’ Cafero said.

Some of the cuts questioned were:

· $110 million in Medicaid cuts;

· $40 million in nursing home cuts despite a steady patient load.

· $50 million cut from the HUSKY health care plan.

The Democrats also want to spend $189 million more in various areas including taking $30 million from the tobacco settlement money. Republicans questioned how there can be additional spending, no tax increases and a claim $110 million in overall cuts to the bottom line.

The No Tax Increase Budget the House Republicans proposed a year ago eventually turned out to be the compromise fiscal plan that the legislature adopted. Republicans stressed that proposed savings must be verified and final Republican support is contingent on no new taxes, legitimate spending cuts and a sustainable fiscal plan for the future.

“This is a good start. Work remains to be done and the budget figures must be verified. But clearly revenue projections are decreasing and now is not the time to increase spending or raise taxes,’’ Cafero said. “If the projected savings are not real – if the savings cannot be verified – we would be creating a huge deficit next year that requires either massive cuts to fill or massive taxes to hike.’’