Connecticut Working Families is calling on the governor and the legislature to raise more revenue to solve the state’s budget crisis, instead of focusing on cuts in services.
Governor Dannel Malloy came into office with a huge tax hike to solve a massive budget gap, but far from putting the budget on a sustainable path, he’s continued to face shortfalls ever since.
Now in his second term, raising revenue seems to be off the table, and the governor this week announced yet another round of mid-budget rescissions -- his third so far this year.
Developmental disabilities and mental health and addiction services were the big losers this time, as Malloy ordered $79 million in cuts.
Lindsay Farrell of Connecticut Working Families said this path is simply unsustainable. “If we continue to cut the services that people rely on, we take middle class employees who work for the state and we put them out of work, that’s going to do pretty terrible harm to the Connecticut economy, which is already struggling,” she told WNPR.
Farrell has three alternative suggestions: passing the so-called Walmart bill, which would fine big companies that pay low wages; closing the carried interest loophole -- which is a tax break on the earnings of hedge fund managers; and matching the top tax rates of surrounding states like New York and Massachusetts, to make the wealthy pay more.
Working Families believes these measures would generate an additional $600 million annually for the state.
But Farrell admitted that in the current climate, the ideas may face an uphill battle.
“We’re really hoping that the legislature and the governor’s administration will take a look at solving this problem in a way that’s fair, that asks profitable corporations and the one percent to step up and do their fair share,” she said.
The legislature may consider a deficit mitigation bill in just over a week’s time.
