Rep. Themis Klarides and Fellow Republicans Unveil 2011 State Budget Plan

Rep. Themis Klarides and Fellow Republicans Reveal a Common Sense Budget
Budget released on tax day erases $736 million 2011 deficit without raising taxes

View Rep. Klarides’ state budget video statement. See video clips from the news conference. Download a copy of the Republican’s budget presenation shown at the news conference.

At a news conference, Republicans revealed today on April 15th, commonly known as tax day, their plan for a state budget that erases the projected $736 million deficit for 2011 without raising taxes.

“Raising prices, costs or taxes on Connecticut families or taxing hospitals who care for us when we’re most in need are not the answers to our budget problems as others have proposed before. We must create an affordable Connecticut for everyone and we must lead by example. The plan we revealed today accomplishes just that and closes the deficit, without raising taxes,” Rep. Klarides said after the news conference.

The balanced plan preserves municipal and school aid, and sets aside $74.5 million to stimulate job growth. Companies that hire the unemployed can earn $17.5 million in tax credits, and the plan establishes a $25 million small business revolving loan fund, and eliminates the Business Entity Tax.

Some highlights of the budget in the areas of job creation and retirement security are:
• A Small Business Revolving Loan Fund of $25 million is created;
• $200 million will be paid into the state employee pensions including teachers;
• The Business Entity Tax is eliminated to save companies $32 million;
• Tax credits of up to $17.5 million will be available to companies that hire off unemployment rolls.

“The people of Connecticut need jobs. Since the start of the recession, Connecticut has lost around 101,000 jobs. Our plan gives resources to small business and incentives to employers who hire new workers. The Republicans have a plan to put Connecticut back to work,” she said.

The plan also asks for concessions from legislators, from state employees to avoid layoffs, and calls for the consolidation of agencies.

The hallmarks of the government savings include:
• $10 million in state agency consolidations;
• $58 million in line item cuts returning to 2009 levels;
• $64 million in early retirement for state workers;
• $3.8 million in legislative pay cuts, elimination of franked mail and travel reimbursements
• $6.4 million shed in state office leases; 
• $150 million in state worker concessions, including wage freezes, furlough days and health care savings;

“As I and many of my Republican colleagues have said before, we can plug the state deficit without raising taxes or cutting aid to local municipalities or schools. On July 1st , just weeks away, the new state budget becomes effective and if the legislature fails to act, our state will face a growing $700 million deficit .  We, the Republican caucus, have a plan. The legislature must start today to cut spending and find ways to create government efficiencies without raising taxes. Our plan does just that, but we must start today. Inaction is not an option,” said Rep. Klarides.