"We can tax the millionaires in Washington and we can make Connecticut a better place for working families” – 5th District Democratic U.S. House candidate Chris Donovan
"Don't tax you, don't tax me. Tax the guy behind the tree"—Russell Long
Even the most progressive politician of his day, Russell’s father Huey Long, knew the scheme wouldn’t work; but it was a winner as a populist campaign pitch. Within the Democratic Party of his day, Russell was acknowledged as an authority on tax law. As such, he became an ardent advocate of tax breaks for business. “I have become convinced,” said Russell, most certainly not a chip off his father’s progressive block, “you're going to have to have capital if you're going to have capitalism."
One suspects that progressive leader of the state House of Representatives Chris Donovan knows this. However, the deathless scheme, endemic in the Democratic Party, to convince the tax paying public that someone may be found – perhaps hiding behind a tree in Washington – to pay debts incurred by reckless politicians marches on and on and on.
Even Governor Dannel Malloy, who styles himself a progressive, focused in his first budget on broadening the tax base. A revenue stream that depends chiefly on the ups and downs of Wall Street fed millionaires, a great number of whom in Connecticut are hedge fund managers, is doomed to fail. There are, in Connecticut and the nation, too few millionaires chasing too many debts.
Mr. Donovan is one of three Democrats vying for the seat in the U.S. House of Representatives soon to be left vacant by U.S. Rep. Chris Murphy, who has set his sights on U.S. Senator Joe Lieberman’s soon to be vacant seat. Former state representative Elizabeth Esty, whose husband Daniel was appointed Commissioner of the Connecticut Department of Energy and Environmental Protection (DEEP) by Mr. Malloy last and Daniel Roberti are also announced candidates. On the Republican side of the barricades, Justin Bernier, a member of former Governor Jodi Rell's cabinet who ran for the seat in 2010, Mike Clark, chairman of the Farmington Town Council and a former FBI agent, businesswoman Lisa Wilson-Foley, businessman Mark Greenberg, who also ran in 2010, and state senator Andrew Roraback are campaigning for the seat.
Most Republicans running for office who have some personal experience with business are familiar with the principle underlying business flight, which may be stated as follows: Whatever you tax tends to disappear. If you tax millionaire hedge fund operators who live in Fairfield’s Gold Coast, both hedge fund businesses and its employees will leech out of the state in search of more favorable profit margins elsewhere. Mr. Malloy has been known to worry in public that Connecticut’s neighboring states would benefit from exorbitant taxes on hedge fund millionaires, however popular and politically beneficial the prospect of taxing millionaires might be to progressive politicians. Like water, businesses flow from high cost to low coast states, and taxes are one of the controllable components of the cost of doing business.
Mr. Donovan favors taxing millionaires to pay for a budget that has increased threefold since the last Democratic governor in Connecticut, William O’Neil, held office. And it is quite simply an exercise in futility to point out to him that the state is not suffering from a revenue problem. The threefold increase in state spending within a little more than two decades is undeniable proof that the state is suffering from a spending problem the present Speaker of the State House of Representative has no interest in addressing.
The same principle of disappearing opportunities applies to politically inspired increases in the minimum wage, a populist measure supported by Mr. Donovan, whose ambition it is to propel Connecticut into first place among states that impose the highest minimum wage. Beyond a certain level, the minimum wage forces companies that cannot afford it to cut back on employment or go out of business. Costly boosts in the minimum wage affects only those employers whose profit margins are slight. Capital rich mega-companies will be able to absorb Mr. Donovan’s impositions, but these are not companies that hire workers who have in the past been paid the kind of wages Mr. Donovan hopes to boost through his minimum wage legislation.
People with little or no working history are those most likely to be adversely impacted by Mr. Donovan’s bill. Low income workers and teenagers in blighted urban areas who hope to place their feet on the bottom rung of the ladder of success will find that the rungs have been hacked off by legislators in a Democratic dominated General Assembly who for reasons of political expedience had yielded to Mr. Donovan’s anti-business ideology.
A business that might hire a child of the city making his way valiantly and honorably through circumstances Mr. Donovan little understands needs capital to pay his workers’ wages. Mr. Donovan has yet to be convinced that you cannot have capitalism without capital. If he succeeds in making his way to the U.S. House of Representatives in Washington, home of the magic money tree, it is possible he may never learn what children of the city already know: When the profit margins of businessmen who are likely to hire them is reduced, the prospect of their being hired is proportionally reduced.
Showing posts with label Malloy Rell. Show all posts
Showing posts with label Malloy Rell. Show all posts
Sunday, March 4, 2012
Huey Donovan
Labels:
Bernier,
Chris Donovan,
Chris Murphy,
Clark,
DEEP,
Esty,
Greenberg,
Huey Long,
Lieberman,
Lisa Wilson Foley,
Malloy,
Malloy Rell,
Roberti,
Russell Long
Saturday, February 18, 2012
The Loyal Opposition
You cannot be a loyal opposition unless you are opposed to the reigning power – in Connecticut’s one party state, a General Assembly and a gubernatorial office dominated by Democrats – and are, at the same time, loyal to something other than the present regime. When Republicans in the General Assembly were frozen out of budget negotiations last fiscal year by a “notice me” governor and a Democratic legislature dominated by a single party, the Valley Forge experience forced them to become, perhaps for the first time in several decades, an authentic loyal opposition.
Republican leaders in the state Senate on February 17 published their priorities for the 2012 legislative session. Pointing out the legislature’s constitutional requirement to devote the session in even years to budgetary matters, the Republicans outlined three major goals:
The loyal opposition was offering in the document released to major news outlets a laundry list of Republican Party desiderata. The response from Malloyalists was instantaneous. Mr. Malloy’s chief numbers cruncher in the Office of Policy Management said that Republicans, who for months had been arguing that Democratic budget numbers were partly fictional, had got their budget figures wrong.
It was left to Sen. President Donald Williams to offer a political assessment. Mr. Williams said that the budget process under Mr. Malloy and former Governor Jodi Rell were “like night and day.” He said the economy was improving, and that Democrats in the General Assembly at the end of the fiscal year would turn in a budget that was balanced. And, no stranger to irony and comedy, Mr. Williams said, according to a piece in CTNewsJunkie, he found it comical that Republicans now “’want to be the Bad News Bears’ when two years ago they ‘aided and abetted Rell’s $2 billion deficiency.’ Williams is referring to the mistake Rell made when she released a budget that closed a $6 billion gap, after having admitted it was $8 billion.”
One fancies that the Democrats have found their whipping post in previous pragmatic Republican governors – who, of course, had been forced by superior numbers the Democrats were able to marshal in the General Assembly to accommodate the ruling legislative regime presided over by Big Spenders such as Mr. Williams and union allied Speaker of the House Chris Donovan, now busily running for the U.S. Senate in the 5th District. Mr. Williams and Mr. Malloy have found their George W. Bush in Mrs. Rell and Mr. Rowland. As President Pro Tem of the Senate, Mr. Williams surely realizes that legislators are constitutionally responsible for final budgets.
It is true that Mrs. Rell made mistakes, as did former Governor John Rowland. But for the greater part of the time the two previous Republican governors, as well as former “Maverick” Governor Lowell Weicker, were busy accommodating Mr. Williams, Mr. Donovan and their predecessors. Those accommodations have led ineluctably to an enfeebled Republican Party and Connecticut’s present one party state.
The goals outlined by Republicans this fiscal year suggest that leaders in the party may have learned from history that those who do not learn from history will be doomed to repeat the errors of the past.
Republican leaders in the state Senate on February 17 published their priorities for the 2012 legislative session. Pointing out the legislature’s constitutional requirement to devote the session in even years to budgetary matters, the Republicans outlined three major goals:
•Strict adherence to the state’s constitutional spending cap;Highlights of the Republican proposals included:
•No new taxes; and
•No spending increases.
Balancing the BudgetNo one can possibly mistake the directional signals strikingly apparent in the Republican release for a Democratic Party campaign document. One imagines union supported Malloyalists choking on the last mentioned “General Government Reform” measure that privatizes rather than unionizes direct care services. Should Senate President Donald Williams be obliged to swallow that big pill, it would take a Heimlich Maneuver administered by the entire membership of SEBAC to remove it from his throat. Recently, Governor Dannel Malloy made the unionization of private day care workers more likely through executive fiat.
•No tax or spending increases and strict adherence to the constitutional spending cap
•Review of all 2011 Malloy tax hikes
•Require consensus expenditure projections, just as consensus revenues are provided
•Reduce pension liabilities through real pension reform
•Enhance fraud detection in social service programs
Economic Development and Job Creation
•Regulatory reform: moratorium on new regulations, expedited permitting, cost/benefit analysis of existing regulations
•Targeted tax relief: tax incentives for companies who purchase commercial property in CT; repeal the corporate tax surcharge; expand Learn Here Live Here; create a small business reinvestment account
•Increase the dispensing fee for independent pharmacies and eliminate the mail-order requirement in SEBAC
•Cap the gas tax
•Fund the underground storage tank program
Education Reform
•Reform teacher tenure to bring greater accountability into the classroom
•Greater resources for charter schools
•Reject the proposed mandatory regionalization that would force up to 31 small towns with fewer than 1,000 elementary school students to merge with other districts that face losing state aid.
Transparency and Accountability
•Redirect Busway resources elsewhere
•Require DOC to report outcomes related to Early Release of Prisoners
•Reconstitute the watchdog agencies
General Government Reform
•Improve response to natural disasters: centralize coordination of government efforts; performance standards for utilities; require utilities to train municipal employees in how to identify live wires
•Establish Privatization Planning Committee to develop a plan to privatize direct-care.
The loyal opposition was offering in the document released to major news outlets a laundry list of Republican Party desiderata. The response from Malloyalists was instantaneous. Mr. Malloy’s chief numbers cruncher in the Office of Policy Management said that Republicans, who for months had been arguing that Democratic budget numbers were partly fictional, had got their budget figures wrong.
It was left to Sen. President Donald Williams to offer a political assessment. Mr. Williams said that the budget process under Mr. Malloy and former Governor Jodi Rell were “like night and day.” He said the economy was improving, and that Democrats in the General Assembly at the end of the fiscal year would turn in a budget that was balanced. And, no stranger to irony and comedy, Mr. Williams said, according to a piece in CTNewsJunkie, he found it comical that Republicans now “’want to be the Bad News Bears’ when two years ago they ‘aided and abetted Rell’s $2 billion deficiency.’ Williams is referring to the mistake Rell made when she released a budget that closed a $6 billion gap, after having admitted it was $8 billion.”
One fancies that the Democrats have found their whipping post in previous pragmatic Republican governors – who, of course, had been forced by superior numbers the Democrats were able to marshal in the General Assembly to accommodate the ruling legislative regime presided over by Big Spenders such as Mr. Williams and union allied Speaker of the House Chris Donovan, now busily running for the U.S. Senate in the 5th District. Mr. Williams and Mr. Malloy have found their George W. Bush in Mrs. Rell and Mr. Rowland. As President Pro Tem of the Senate, Mr. Williams surely realizes that legislators are constitutionally responsible for final budgets.
It is true that Mrs. Rell made mistakes, as did former Governor John Rowland. But for the greater part of the time the two previous Republican governors, as well as former “Maverick” Governor Lowell Weicker, were busy accommodating Mr. Williams, Mr. Donovan and their predecessors. Those accommodations have led ineluctably to an enfeebled Republican Party and Connecticut’s present one party state.
The goals outlined by Republicans this fiscal year suggest that leaders in the party may have learned from history that those who do not learn from history will be doomed to repeat the errors of the past.
Labels:
Chris Donovan,
Don Williams,
Malloy Rell,
Republicans,
Weuicker
Monday, July 25, 2011
Three Notes On The Current Crisis
The unilateral changes in by-laws
It may be noted that what has been done unilaterally by the union leadership may be undone unilaterally by a different leadership.
Despite a desperate attempt by SEBAC negotiators Dan Livingston and Matt O’Connor to pin on such convenient scapegoats as the Yankee Institute their dramatic failure to sell plan A to union rank and file members, some unions, dissatisfied with SEBAC representation, are now shopping around for other unions with which they might affiliate. In mid-June SEBAC leaders charged the Yankee Institute had improperly used the state’s e-mail system to communicate with union members and referred their dark suspicions to Attorney General George Jepsen, Connecticut’s version, under the state’s previous Attorney General Richard Blumenthal, of poet Francis Thompson’s “The Hound Of Heaven.”
SEBAC leaders, working in tandem with Plan A salesmen in the administration of Governor Dannel Malloy, unilaterally changed union by-laws to reduce to 50 percent the votes necessary to pass Plan A after it had been rejected under previous inconvenient by-laws.
This change, since it entailed a re-do of a previous vote rejecting Plan A, has not gone down well with many rank and file union members. The re-do vote under altered by-laws rankled the 43 percent of union members who initially voted against Plan A.
Passage of Plan A is virtually assured under the new by-laws unilaterally adopted by SEBAC leaders following the first unsuccessful vote. The re-do vote and by-laws change also have alienated the affections of some union members who initially voted affirmatively to adopt Plan A and regard the by-laws change as an undemocratic attempt to void a legitimate voting process without seeking to affirm the changes though a rank and file membership vote. If you can’t fix a vote, the next best thing is to fix the process that governs the vote. The unilateral change in by laws is viewed by many union members as an attempt to fix a vote by other means and, as such, it is likely to have lasting repercussions.
In the next three weeks, according to a story in the Hartford Courant, members of the 15 unions comprising SEBAC will be voting on re-drafted barely revised Plan A. But just as some pigs are more equal than other pigs in George Orwell’s Animal Farm, so here some votes are more equal than others.
While the new tentative agreement will be presented to the full membership of some unions, some union leaders, Mr. O’Connor wrote on the union’s website, “are planning to have elected leadership cast their union’s vote because there are no negative changes in the revised TA as compared to the previous agreement.” In this tortured sentence, Mr. O’Connor appears to be saying that if a union voted to affirm Plan A, individual members of such unions will not, on a redo vote, be given the opportunity to change their vote from affirmative to negative.
The Closed Doors Of A Putative “Transparent” Administration
Candidate for Governor Dan Malloy promised voters a transparent administration. The budget process this year falls far short of transparency. In previous administrations, the budget shuttle cock was batted in public between two parties, one of which, the Republican Party, controlled the executive office first under Governor John Rowland and later under Governor Jodi Rell.
The political tension between Republican governors and the Democratic controlled General Assembly insured a certain degree of transparency. While it is true that Republican governors often stiffed Republican leaders in the General Assembly while making private deals behind closed doors with Democratic leaders, the party bifurcation nevertheless allowed budget negotiations between the two parties to be ventilated in Connecticut’s left of center media.
With the election of Dannel Malloy as governor, the crack in the door was permanently sealed shut. When reporters during the current budget negotiations asked their usual sources within Republican Party ranks what was going on behind the caucus closed doors, they replied, truthfully, that they knew no more than had been reported in the press. And the press knew nothing.
Negotiations between Malloy administration officials and SEBAC were just as impenetrable. Following Mr. Malloy’s elevation to the governor’s office, an iron curtain had been rung down on what the media in other administrations had denominated “the public’s business.” But this is how the one party state operates; closed doors give the current administration an insuperable propaganda advantage.
Union resistance to the autocratic rule of the union-administration-media-complex is but a crack in the concrete through which, given time enough, a blade of grass may sprout. The blade, one may be certain, will be reported to the attorney general’s office.
Malloy As Prometheus
Prometheus was the god in Greek mythology punished by Zeus for having brought the gift of enlightenment to men. Similarly, Mr. Malloy brought the gift of Plan A to state unions – breathes there a commentator who has not said, multiple times, that Plan A was a boon to unions? – and this gift was rejected, Mr. Malloy having been stretched on a rock outside the portals of heaven, his liver to be torn by the sharp beaks of eagles. Now he has been saved. Mankind’s tears have been turned to shouts of joy. Such is the narrative we can expect to see piped by successfully propagandized media adepts in the next few weeks – when, in fact, it is the state itself stretched on the rock waiting for a ravenous eagle to drink its wise blood.
It may be noted that what has been done unilaterally by the union leadership may be undone unilaterally by a different leadership.
Despite a desperate attempt by SEBAC negotiators Dan Livingston and Matt O’Connor to pin on such convenient scapegoats as the Yankee Institute their dramatic failure to sell plan A to union rank and file members, some unions, dissatisfied with SEBAC representation, are now shopping around for other unions with which they might affiliate. In mid-June SEBAC leaders charged the Yankee Institute had improperly used the state’s e-mail system to communicate with union members and referred their dark suspicions to Attorney General George Jepsen, Connecticut’s version, under the state’s previous Attorney General Richard Blumenthal, of poet Francis Thompson’s “The Hound Of Heaven.”
SEBAC leaders, working in tandem with Plan A salesmen in the administration of Governor Dannel Malloy, unilaterally changed union by-laws to reduce to 50 percent the votes necessary to pass Plan A after it had been rejected under previous inconvenient by-laws.
This change, since it entailed a re-do of a previous vote rejecting Plan A, has not gone down well with many rank and file union members. The re-do vote under altered by-laws rankled the 43 percent of union members who initially voted against Plan A.
Passage of Plan A is virtually assured under the new by-laws unilaterally adopted by SEBAC leaders following the first unsuccessful vote. The re-do vote and by-laws change also have alienated the affections of some union members who initially voted affirmatively to adopt Plan A and regard the by-laws change as an undemocratic attempt to void a legitimate voting process without seeking to affirm the changes though a rank and file membership vote. If you can’t fix a vote, the next best thing is to fix the process that governs the vote. The unilateral change in by laws is viewed by many union members as an attempt to fix a vote by other means and, as such, it is likely to have lasting repercussions.
In the next three weeks, according to a story in the Hartford Courant, members of the 15 unions comprising SEBAC will be voting on re-drafted barely revised Plan A. But just as some pigs are more equal than other pigs in George Orwell’s Animal Farm, so here some votes are more equal than others.
While the new tentative agreement will be presented to the full membership of some unions, some union leaders, Mr. O’Connor wrote on the union’s website, “are planning to have elected leadership cast their union’s vote because there are no negative changes in the revised TA as compared to the previous agreement.” In this tortured sentence, Mr. O’Connor appears to be saying that if a union voted to affirm Plan A, individual members of such unions will not, on a redo vote, be given the opportunity to change their vote from affirmative to negative.
The Closed Doors Of A Putative “Transparent” Administration
Candidate for Governor Dan Malloy promised voters a transparent administration. The budget process this year falls far short of transparency. In previous administrations, the budget shuttle cock was batted in public between two parties, one of which, the Republican Party, controlled the executive office first under Governor John Rowland and later under Governor Jodi Rell.
The political tension between Republican governors and the Democratic controlled General Assembly insured a certain degree of transparency. While it is true that Republican governors often stiffed Republican leaders in the General Assembly while making private deals behind closed doors with Democratic leaders, the party bifurcation nevertheless allowed budget negotiations between the two parties to be ventilated in Connecticut’s left of center media.
With the election of Dannel Malloy as governor, the crack in the door was permanently sealed shut. When reporters during the current budget negotiations asked their usual sources within Republican Party ranks what was going on behind the caucus closed doors, they replied, truthfully, that they knew no more than had been reported in the press. And the press knew nothing.
Negotiations between Malloy administration officials and SEBAC were just as impenetrable. Following Mr. Malloy’s elevation to the governor’s office, an iron curtain had been rung down on what the media in other administrations had denominated “the public’s business.” But this is how the one party state operates; closed doors give the current administration an insuperable propaganda advantage.
Union resistance to the autocratic rule of the union-administration-media-complex is but a crack in the concrete through which, given time enough, a blade of grass may sprout. The blade, one may be certain, will be reported to the attorney general’s office.
Malloy As Prometheus
Prometheus was the god in Greek mythology punished by Zeus for having brought the gift of enlightenment to men. Similarly, Mr. Malloy brought the gift of Plan A to state unions – breathes there a commentator who has not said, multiple times, that Plan A was a boon to unions? – and this gift was rejected, Mr. Malloy having been stretched on a rock outside the portals of heaven, his liver to be torn by the sharp beaks of eagles. Now he has been saved. Mankind’s tears have been turned to shouts of joy. Such is the narrative we can expect to see piped by successfully propagandized media adepts in the next few weeks – when, in fact, it is the state itself stretched on the rock waiting for a ravenous eagle to drink its wise blood.
Labels:
Jepsen,
Livingston,
Malloy,
Malloy Rell,
O'Connor,
Prometheus,
Rowland,
SEBAC,
Yankee Institute
Monday, June 13, 2011
The Vozhd
The budget submitted by Governor Dannel Malloy to the Democratic dominated General Assembly and approved by the legislature – although a pending deal between Mr. Malloy and state union workers requiring union givebacks of $1.6 billion had not been affirmed by the unions at its passage – is best seen as the inevitable political end piece of the first Weicker budget.
The presumptions underlying Governor Lowell Weicker’s 1991 budget parallel Mr. Malloy’s. Indeed, the two budgets, as well as the political maneuvering involved in passing them, are nearly mirror images.
Mr. Weicker’s campaign for governor featured rather dramatic suggestions that he would not resort to an income tax to liquidate a large state debt. Similarly, Mr. Malloy several times during his campaign with Republican gubernatorial nominee Tom Foley suggested that an increase in taxes would be a last resort for him.
Instituting an income tax, Mr. Weicker said at the time, “would be like pouring gas on a fire.”
Upon being elected governor, Mr. Weicker chose as his Office of Policy Management chief Bill Cibes, a pro-income tax proponent who had run for governor on an income tax platform. Mr. Cibes had been soundly defeated. Before anyone could cry “Fire” in Connecticut’s crowded political theatre, Mr. Weicker, breaking arms and shoving pencils into the eyes of wavering anti-income tax legislators, set Connecticut ablaze with a new, relatively flat income tax. Mr. Malloy did not deign to allow Republicans to shape his budget, and his tax increase was larger than Weicker’s.
Spendthrifts in the General Assembly, most but not all of them Democrats, then and there pledged to make Mr. Weicker’s income tax more progressive. A progressive feature, finally added in the waning days of the Rell administration, has been improved by the Malloy administration. Governor Jodi Rell, the last Republican governor before the advent of Mr. Malloy, lampooned as “Snow White” by her Democratic opponents and the usual cheering section of Connecticut’s left of center media, was never a match for Machiavellian Democrats in the General Assembly. Looking backward from the vantage point of the Malloy administration, Mrs. Rell may be viewed as the last Republican cork in the bottle of a once fissiparous but now united Democratic Party. Mr. Malloy is the first Democratic governor elected in the Connecticut since former Governor William O’Neill departed the state more than 20 years ago, leaving in his wake a deficit of about $1 billion. In the post income tax era, the deficit has tripled, the budget has tripled, and the total liability straddling the state is about $68 billion. All of this is the result of the inability of the Democratic Party’s progressive wing to cut spending.
“We all want progress,” C.S. Lewis said. “but of you’re on the wrong road, progress means doing an about turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.”
Asked some time ago whether he feared the consequences of a one party state, Don Williams, the progressive state Senate President, retorted that such fears were overblown; the one party state gets things done.
It is not known whether Mr. Williams is a student of Italian fascism, but he clearly admires the oomph behind it as expressed in Mussolini’s definition of fascism: “Everything in the state; nothing outside the state; nothing above the state. And by “the state,” of course, the guy who made the trains run on time meant a one party governing power.
For all practical purposes, Connecticut is now a one party, progressive state – with a progressive income tax, a means of passing on the tax burden, rather than sharing it, to anyone who makes over $200,000 a year. Republicans this year exercised no influence in shaping Mr. Malloy’s union driven budget.
Following the passage of Connecticut’s budget, the New York Times, the editorial board of which is simpatico with Mr. Malloy, modestly pronounced Connecticut’s budget session “the most activist, liberal legislative session in memory.” As tokens of Mr. Malloy’s abundant liberalism, the Times mentioned that the governor worked with the General Assembly to “enact the largest tax increase in state history and approved the nation’s first law to mandate paid sick leave for some workers. The legislators voted to extend protections for transgender people, to charge in-state college tuition rates to illegal immigrants, to extend an early-release program for prisoners and to decriminalize possession of small amounts of marijuana.”
The Sunday following the adoption of Mr. Malloy’s budget by the Democratic controlled General Assembly, The Hartford Courant, Connecticut’s only state wide newspaper, tooted the governor’s horn in an editorial, “Going The Governor's Way: One-Party Rule Empowers Malloy.”
The paper clearly admires Mr. Malloy’s force and focus, even as it admired, without much attention to the direction of such force and focus, the same qualities in Mr. Weicker. It declares that if unions agree to the rather inconsequential, temporary sacrifices Mr. Malloy has asked of them in his budget plan, the governor will have “fixed the biggest budget deficit the state ever faced,” a doubtful proposition. Connecticut’s continuing budget deficits are the result of overspending, and spending has not been aggressively attacked in the Malloy budget, which freezes the wages of state union members for two years, thereafter increasing wages by three percent for the following four years. The Malloy budget contractually forestalls layoffs for four years and restricts “shared sacrifice” only to state union members. The shared sacrifice of taxpayers under the Malloy budget will be permanent; spending giveback from unions will be temporary. The state’s largest budget deficit in history has been “fixed” mostly by relying upon the state’s biggest tax increase in history, larger even than the increase that followed Mr. Weicker’s imposition of an income tax.
Republican gubernatorial candidate Tom Foley, who lost to Mr. Malloy, has not entirely disappeared. And, as might be expected, his assessment of Mr. Malloy’s “shared sacrifice,” differs markedly from the state’s left of center media. “The facts are clear and simple,” said Mr. Foley. “Spending in the general fund is budgeted to go up next fiscal year by over $450 million, an increase of 2.5 percent over this year. The governor's ‘deal’ with state workers' unions includes no reduction in either the number of state workers or the overall cost of the state workforce. Gov. Malloy and the Democratic majority are closing this entire budget deficit with increased taxes amounting to more than $2.5 billion.”
The Courant admires Mr. Malloy’s audacity:
In a time of scarce tax resources – not even the audacious Mr. Malloy can press water from stones – Mr. Malloy has proposed a budget in which the problems he has temporarily settled by a shared sacrifice that weighs heavily on tax payers and lightly on tax consumers will almost certainly recur in a more virulent form later.
One of the most glaring, unaddressed political problems facing this and preceding governors is centered in the schedules that determine contract negotiations between Connecticut’s governors and bargaining units. Union contracts expire at different dates, which shifts the negotiation advantage from the governor’s office to union negotiators. Like the weather, all Connecticut governors have complained about it, but complaints do not change the weather.
Suppose, just to suppose, that an audacious governor and an enlightened General Assembly were to arrange matters so that all state contracts were to expire on the same date and hour. In that circumstance, contract negotiations between the executive department and unions could conclude in a more timely manner, which would give to the executive and legislative departments an advantage in negotiations they do not presently enjoy. The arrangement would more easily make shared sacrifice politically possible. Under the present arrangement – this year, the Malloy administration, working in concert with Democrats in the General assembly, pre-approved the budget without the certainty of union give backs -- both the governor and the General Assembly are held hostage to a process that gives union negotiators the upper hand in determining the final shape of the state’s budget.
The telling consequences of Mr. Malloy’s focused and forceful approach to government all lie in the future. And the preeminence of legislators and governors in a democracy over union negotiators may merit serious attention as Connecticut drifts effortlessly toward Mr. William’s utopian one party state.
The presumptions underlying Governor Lowell Weicker’s 1991 budget parallel Mr. Malloy’s. Indeed, the two budgets, as well as the political maneuvering involved in passing them, are nearly mirror images.
Mr. Weicker’s campaign for governor featured rather dramatic suggestions that he would not resort to an income tax to liquidate a large state debt. Similarly, Mr. Malloy several times during his campaign with Republican gubernatorial nominee Tom Foley suggested that an increase in taxes would be a last resort for him.
Instituting an income tax, Mr. Weicker said at the time, “would be like pouring gas on a fire.”
Upon being elected governor, Mr. Weicker chose as his Office of Policy Management chief Bill Cibes, a pro-income tax proponent who had run for governor on an income tax platform. Mr. Cibes had been soundly defeated. Before anyone could cry “Fire” in Connecticut’s crowded political theatre, Mr. Weicker, breaking arms and shoving pencils into the eyes of wavering anti-income tax legislators, set Connecticut ablaze with a new, relatively flat income tax. Mr. Malloy did not deign to allow Republicans to shape his budget, and his tax increase was larger than Weicker’s.
Spendthrifts in the General Assembly, most but not all of them Democrats, then and there pledged to make Mr. Weicker’s income tax more progressive. A progressive feature, finally added in the waning days of the Rell administration, has been improved by the Malloy administration. Governor Jodi Rell, the last Republican governor before the advent of Mr. Malloy, lampooned as “Snow White” by her Democratic opponents and the usual cheering section of Connecticut’s left of center media, was never a match for Machiavellian Democrats in the General Assembly. Looking backward from the vantage point of the Malloy administration, Mrs. Rell may be viewed as the last Republican cork in the bottle of a once fissiparous but now united Democratic Party. Mr. Malloy is the first Democratic governor elected in the Connecticut since former Governor William O’Neill departed the state more than 20 years ago, leaving in his wake a deficit of about $1 billion. In the post income tax era, the deficit has tripled, the budget has tripled, and the total liability straddling the state is about $68 billion. All of this is the result of the inability of the Democratic Party’s progressive wing to cut spending.
“We all want progress,” C.S. Lewis said. “but of you’re on the wrong road, progress means doing an about turn and walking back to the right road; in that case, the man who turns back soonest is the most progressive.”
Asked some time ago whether he feared the consequences of a one party state, Don Williams, the progressive state Senate President, retorted that such fears were overblown; the one party state gets things done.
It is not known whether Mr. Williams is a student of Italian fascism, but he clearly admires the oomph behind it as expressed in Mussolini’s definition of fascism: “Everything in the state; nothing outside the state; nothing above the state. And by “the state,” of course, the guy who made the trains run on time meant a one party governing power.
For all practical purposes, Connecticut is now a one party, progressive state – with a progressive income tax, a means of passing on the tax burden, rather than sharing it, to anyone who makes over $200,000 a year. Republicans this year exercised no influence in shaping Mr. Malloy’s union driven budget.
Following the passage of Connecticut’s budget, the New York Times, the editorial board of which is simpatico with Mr. Malloy, modestly pronounced Connecticut’s budget session “the most activist, liberal legislative session in memory.” As tokens of Mr. Malloy’s abundant liberalism, the Times mentioned that the governor worked with the General Assembly to “enact the largest tax increase in state history and approved the nation’s first law to mandate paid sick leave for some workers. The legislators voted to extend protections for transgender people, to charge in-state college tuition rates to illegal immigrants, to extend an early-release program for prisoners and to decriminalize possession of small amounts of marijuana.”
The Sunday following the adoption of Mr. Malloy’s budget by the Democratic controlled General Assembly, The Hartford Courant, Connecticut’s only state wide newspaper, tooted the governor’s horn in an editorial, “Going The Governor's Way: One-Party Rule Empowers Malloy.”
The paper clearly admires Mr. Malloy’s force and focus, even as it admired, without much attention to the direction of such force and focus, the same qualities in Mr. Weicker. It declares that if unions agree to the rather inconsequential, temporary sacrifices Mr. Malloy has asked of them in his budget plan, the governor will have “fixed the biggest budget deficit the state ever faced,” a doubtful proposition. Connecticut’s continuing budget deficits are the result of overspending, and spending has not been aggressively attacked in the Malloy budget, which freezes the wages of state union members for two years, thereafter increasing wages by three percent for the following four years. The Malloy budget contractually forestalls layoffs for four years and restricts “shared sacrifice” only to state union members. The shared sacrifice of taxpayers under the Malloy budget will be permanent; spending giveback from unions will be temporary. The state’s largest budget deficit in history has been “fixed” mostly by relying upon the state’s biggest tax increase in history, larger even than the increase that followed Mr. Weicker’s imposition of an income tax.
Republican gubernatorial candidate Tom Foley, who lost to Mr. Malloy, has not entirely disappeared. And, as might be expected, his assessment of Mr. Malloy’s “shared sacrifice,” differs markedly from the state’s left of center media. “The facts are clear and simple,” said Mr. Foley. “Spending in the general fund is budgeted to go up next fiscal year by over $450 million, an increase of 2.5 percent over this year. The governor's ‘deal’ with state workers' unions includes no reduction in either the number of state workers or the overall cost of the state workforce. Gov. Malloy and the Democratic majority are closing this entire budget deficit with increased taxes amounting to more than $2.5 billion.”
The Courant admires Mr. Malloy’s audacity:
“He's rammed through audacious projects, including a nearly $900 million expansion of the University of Connecticut Health Center that could make the state a powerhouse in bioscience research and production.”The operative word in that last sentence is “could.” Pouring nearly a billion dollars into such a doubtful proposition as the UConn Heath Center could, as easily, be throwing good money after bad, and the health center’s record in this respect suggests that the institution may not be salvageable at any price; its had been bailed out numerous times in the past, and throwing money in its direction has been an exercise in futility.
In a time of scarce tax resources – not even the audacious Mr. Malloy can press water from stones – Mr. Malloy has proposed a budget in which the problems he has temporarily settled by a shared sacrifice that weighs heavily on tax payers and lightly on tax consumers will almost certainly recur in a more virulent form later.
One of the most glaring, unaddressed political problems facing this and preceding governors is centered in the schedules that determine contract negotiations between Connecticut’s governors and bargaining units. Union contracts expire at different dates, which shifts the negotiation advantage from the governor’s office to union negotiators. Like the weather, all Connecticut governors have complained about it, but complaints do not change the weather.
Suppose, just to suppose, that an audacious governor and an enlightened General Assembly were to arrange matters so that all state contracts were to expire on the same date and hour. In that circumstance, contract negotiations between the executive department and unions could conclude in a more timely manner, which would give to the executive and legislative departments an advantage in negotiations they do not presently enjoy. The arrangement would more easily make shared sacrifice politically possible. Under the present arrangement – this year, the Malloy administration, working in concert with Democrats in the General assembly, pre-approved the budget without the certainty of union give backs -- both the governor and the General Assembly are held hostage to a process that gives union negotiators the upper hand in determining the final shape of the state’s budget.
The telling consequences of Mr. Malloy’s focused and forceful approach to government all lie in the future. And the preeminence of legislators and governors in a democracy over union negotiators may merit serious attention as Connecticut drifts effortlessly toward Mr. William’s utopian one party state.
Labels:
Cibes,
Courant,
Don Williams,
Malloy Rell,
Maloy,
mussolini,
O'Neill,
Weicker
Tuesday, May 3, 2011
Malloy Budget Passes Senate
Alleging that the budget that passed through the Connecticut state senate would lead to job creation, the ultimate goal of Democrats in the General Assembly, Gov. Dannel Malloy, seemingly pleased that his budget sailed through the senate without serious revision, thanked Senate President Don Williams, Majority Leader Marty Looney, Appropriations Chairman Toni Harp and Finance Chairman Eileen Daily in particular. “They took the budget I proposed, they made it better, and they passed it,” said Mr. Malloy in the following press release:
Republicans, who had no hand in shaping the budget hammered out by Democrats behind closed doors, said the tax increases were too high and would produce a surplus of $1 billion in the span of two years. Democrats answered that the surplus is needed to pay off debt and replenish the “rainy day fund" depleted by former Governor Jodi Rell and the Democrats, who have habitually voted for a tax increases they knew were too high. Ever since the income tax had been written into law, Connecticut’s Democratic dominated legislature and its three previous governors have used frequent billion dollar surpluses to boost an ever increasing level of spending.
One need only imagine a drunken sailor in a bar staring with steely determination at a pretty woman to have perfect picture of the effect surpluses generally have on high spenders in and outside the state legislature.
Mr. Malloy was roundly denounced by Republican leaders for having cut them out of the budget decision making process.
Noting that Mr. Malloy had dangled before them a promise of bi-partisan cooperation on the budget, Republican leader Larry Cafero concluded that the governor was “unwilling to compromise, unwilling to listen, headstrong, and not willing to be flexible. It's his way or the highway.”
Sen. Steward McKinney asked pointedly during debate on the budget, “How can you be open for business when you have a 100 percent increase on the corporate surcharge? You cannot preach and talk and scream and say we're open for business and increase the corporate surcharge. At some point, the talk is hollow and meaningless.''
Mr. Malloy’s aversion to dealing with minority Republicans in the General Assembly is reminiscent of the strategy employed by President Barack Obama in pushing through a veto proof congress contested measures that much of the country disapproved of. In a subsequent election, many of the congresspersons who hanged together with Mr. Obama later were hanged separately in the mid-term elections.
Prior to the passage of his budget in the senate, Mr. Malloy, seeking to distinguish himself from his Republican contemporary in New Jersey, Governor Chris Christie, presented his tax increases as fair and equitable. Amid measures designed to attack spending, Mr. Malloy had deployed “a new way.” Mr. Christie and, surprisingly, Democratic Governor of New York Mario Cuomo both had submitted budgets that contained no tax increases. Mr. Malloy’s budget has a massive doughnut hole in it. Although the Democratic dominated senate passed Mr. Malloy’s plan, the budget was not in balance at passage because state unions, called upon by Mr. Malloy to give back $2 billion in order to balance the budget, are still negotiating the give backs with the governor’s office.
Over in Massachusetts, once derided by nutmeggers as Taxachussetts and now called Wisconsin East, the Democratic denominated House overwhelmingly pushed through a measure that considerably reduces the political heft of unions by eliminating collective bargaining.
“It’s pretty stunning,” the president of the Massachusetts AFL-CIO said. “These are the same Democrats that all these labor unions elected.”
The most accurate way to describe Mr. Malloy’s budget is – not stunning: It raises taxes, does not touch the wellsprings of public debt, provides the usual billion dollar surplus and is has not produced fevered objections from the free spending left, with the possible exception of uber-liberal Jonathan Pelto.
“The Senators who voted for this budget early this morning should be commended for making the tough decisions necessary to begin the process of getting Connecticut’s fiscal house in order. That was a tough vote to make, but it was the right vote to make. It was a vote for an honest budget, one that’s balanced with no gimmicks, and one that will stabilize the state’s finances and lead to our ultimate goal: job creation. I’d like to thank Senate President Don Williams, Majority Leader Marty Looney, Appropriations Chairman Toni Harp and Finance Chairman Eileen Daily in particular. They took the budget I proposed, they made it better, and they passed it.”The budget, which includes the largest tax increase in state history, passed the senate by a narrow margin of 19 to 17, three Democrats -- senators Joan Hartley of Waterbury, Gayle Slossberg of Milford, and Edward Meyer of Guilford -- voting against the measure. The marathon debate on the budget ended at 3:00 in the morning. The $40.2 billion two year budget increases spending by 2.14 percent in the first year and 2.32 percent in the second year.
Republicans, who had no hand in shaping the budget hammered out by Democrats behind closed doors, said the tax increases were too high and would produce a surplus of $1 billion in the span of two years. Democrats answered that the surplus is needed to pay off debt and replenish the “rainy day fund" depleted by former Governor Jodi Rell and the Democrats, who have habitually voted for a tax increases they knew were too high. Ever since the income tax had been written into law, Connecticut’s Democratic dominated legislature and its three previous governors have used frequent billion dollar surpluses to boost an ever increasing level of spending.
One need only imagine a drunken sailor in a bar staring with steely determination at a pretty woman to have perfect picture of the effect surpluses generally have on high spenders in and outside the state legislature.
Mr. Malloy was roundly denounced by Republican leaders for having cut them out of the budget decision making process.
Noting that Mr. Malloy had dangled before them a promise of bi-partisan cooperation on the budget, Republican leader Larry Cafero concluded that the governor was “unwilling to compromise, unwilling to listen, headstrong, and not willing to be flexible. It's his way or the highway.”
Sen. Steward McKinney asked pointedly during debate on the budget, “How can you be open for business when you have a 100 percent increase on the corporate surcharge? You cannot preach and talk and scream and say we're open for business and increase the corporate surcharge. At some point, the talk is hollow and meaningless.''
Mr. Malloy’s aversion to dealing with minority Republicans in the General Assembly is reminiscent of the strategy employed by President Barack Obama in pushing through a veto proof congress contested measures that much of the country disapproved of. In a subsequent election, many of the congresspersons who hanged together with Mr. Obama later were hanged separately in the mid-term elections.
Prior to the passage of his budget in the senate, Mr. Malloy, seeking to distinguish himself from his Republican contemporary in New Jersey, Governor Chris Christie, presented his tax increases as fair and equitable. Amid measures designed to attack spending, Mr. Malloy had deployed “a new way.” Mr. Christie and, surprisingly, Democratic Governor of New York Mario Cuomo both had submitted budgets that contained no tax increases. Mr. Malloy’s budget has a massive doughnut hole in it. Although the Democratic dominated senate passed Mr. Malloy’s plan, the budget was not in balance at passage because state unions, called upon by Mr. Malloy to give back $2 billion in order to balance the budget, are still negotiating the give backs with the governor’s office.
Over in Massachusetts, once derided by nutmeggers as Taxachussetts and now called Wisconsin East, the Democratic denominated House overwhelmingly pushed through a measure that considerably reduces the political heft of unions by eliminating collective bargaining.
“It’s pretty stunning,” the president of the Massachusetts AFL-CIO said. “These are the same Democrats that all these labor unions elected.”
The most accurate way to describe Mr. Malloy’s budget is – not stunning: It raises taxes, does not touch the wellsprings of public debt, provides the usual billion dollar surplus and is has not produced fevered objections from the free spending left, with the possible exception of uber-liberal Jonathan Pelto.
Labels:
Barack Obama,
Cafero,
Christie,
Cuomo,
Daily,
Don Williams,
Harper’s Ferry,
Looney,
Malloy,
Malloy Rell,
Mayer,
McKinney,
Pelto,
Slossberg
Subscribe to:
Posts (Atom)
