Free Response - District Court of Connecticut - Connecticut

Case 3:03-cv-00221-AVC Document 109-2 Filed O4/10/2006 Page 1 of 4

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l lg §i`iii·· STATE OF CONNECTICUT
&‘%ii‘;i* EXECUTIVE CHAMBERS
K HARTFORD, CONNECTICUT 06 106

_ JOHN G. ROWLAND
GOVERNOR
Address by Governor John G. Rowland
, To the People of Connecticut
il; On His Plan to Balance the State Budget
" December 5, 2002
Good evening.
I asked for this opportunity to address you tonight, to tell you about actions I am taking to
balance the state budget. We have tremendous economic challenges facing us, and we need
to address them together. .
The national economy has affected the budgets of almost every state in the country. Some
‘ states are facing very serious deficits — some as high as ten and twenty billion dollars.
I am pleased to report that Connecticut is in far better financial shape than most other
states. Our economy is fundamentally strong. But the national economy has hurt
Connecticut- there is no question about that.Connecticut’s deficit is manageable - IF we
E address itngyig
·-'‘ E As President Lincoln said, "You can’t escape the responsibility of tomorrow by evading it
- ¤ today." Tonight, I approach the budget with two basic principles in mind.
First, to keep our economy strong, government must live within its means. And second,
as elected representatives of the people, it is our responsibility to make the tough choices.
You have a right to expect action. And so do I.
While the economy was growing, many worthwhile state programs were expanded. We
invested in education for our kids, including our universities, in healthcare for our parents,
. and improvements in our environment. But now that our economy is growing at a slower
rate, we must make adjustments — just like any business or family.
_ As governor, it is my responsibility to face the reality of Connecticut’s financial situation.
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Our budget is out of balance - and we must take steps to correct it. This year, we have a
deficit of about $500 million dollars — about 4 percent of the overall budget. The only
responsible way to address this deficit is with discipline and fairness.
I have to make the same kinds of decisions about the State budget that you have to make
‘ about your own family budget. When your income is reduced, you have to cut back on your
expenses.
A month ago, I asked the state employee unions to be part of the solution — because state
_ employee contracts are a big part of state government. State employee salaries and benefits
_ account for one-third of the total state budget — that’s more than $4 billion dollars per year.
_ 2 As the Hartford Courant reported this morning, Connecticut state government employees
if are among the highest paid in the country. Over the past 8 years, their average salaries have
risen by more than 40 percent.
i When I first met with the state employee union leaders to discuss wage and benefit
concessions, I told them I wanted to avoid lay-offs. I proposed a fair compromise that would
keep everyone employed. Tragically, the union leadership rejected my offer and failed to
even consult their own members.
It is with great disappointment and regret that I have to announce the layoffs of 2,800 state
government workers.
I This is not an action I want to take. But as Governor, I must do what is best for our state
and all of its citizens.
Many state employees, including some who have written letters to me, strongly disagree
with their union leadership on the issue of concessions and job security. Most state
employees would give up a raise to keep themselves and their colleagues on the job. But
their union leaders have made the choice for them.
I Having lived through the recession of the early 1990s, I know economic downturns do
hurt. Layoffs are not painless. Job losses affect families and they affect our economy. I have
‘· directed our State Labor Department to help all the affected workers find new employment
or job training.
. Last month, I asked the legislative leaders to work with me to reach a bi—partisan solution
. to the deficit —- a solution that asked something of everyone. I said everything would be on
= the table, including wage concessions, spending cuts, and even some new taxes.
Unfortunately, during this past month, there has been no agreement on any spending cuts.
There has been no bi-partisan plan — and there has been no action by the legislature.
. As a matter of fact, many legislators have asked me to submit a plan. So tomorrow, I will
2 submit my balanced budget plan to the General Assembly. My balanced budget plan is fair.
5 To close the $500 million dollar gap in our budget:
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e Spending will be reduced by 200 million dollars.
e Taxes will be increased by 200 million dollars. The tax increases will include an
increase in income taxes paid by those earning more than $1 million dollars a
year.
e And I will seek at least 100 million dollars in employee contract concessions OR
an additional 100 million dollar cut in state aid to cities and towns by December
31st .
l This plan strikes a balance between spending cuts and tax increases. It includes tax
increases I have opposed throughout my time in public service. But we are facing a budget
’ crisis and I offer this plan in the true spirit of compromise.
I am also announcing tonight that I will call the General Assembly into Special Session on
- ` December 18th to vote on my balanced budget plan. By law, Connecticut must balance its
‘ budget. If we fail to address the deficit now, we will be mortgaging our children’s future.
. This is simply unacceptable. We have a responsibility to ourselves and to the people we
· serve.
Leadership sometimes requires hard choices, but we ytjl get the job done. I will also
remind the newly elected legislators who will be sworn in on January Sth that the deficit for
next year is $i.5 billion dollars. That is why it is urgent that we pass the balanced budget act
_ on December 18th, so we can begin the new year on the right foot.
Thank you for listening.
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