Connecticut state budget

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Connecticut ended FY 2009 on June 30, 2009 with a $926 million deficit^[1] and expects a $500 million deficit for FY 2010 according to Connecticut State Comptroller Nancy Wyman.^[2] Gov. M. Jodi Rell and the Connecticut General Assembly continue to be at odds over the FY 2010 budget after its latest passage on September 1, 2009.^[3]

The Connecticut General Assembly met in regular session from January 7 to June 3, 2009.^[4] They reconvened on June 19, 2009 and passed a revised FY 2010 budget on June 26, 2009. The governor vetoed their budget on July 1. Gov. Rell signed an executive order providing funding for state agencies and essential programs in the absence of having a budget from July 1. The General Assembly passed another budget on Sept. 1, 2009 for FY 2010.^[5]

Gov. Rell’s veto of the budget on July 1 was based on her objection to raising the state’s individual income tax from 5% to 7.5%.^[6] Gov. Rell neither signed nor vetoed the September 1 budget sent from the General Assembly, which allowed it to go into effect after 5 days. She proposed a line-item veto of $8 million in earmarks attached to it, but the Connecticut Attorney General opined the Governor cannot line-item veto portions of a bill she did not sign.^[7] The central issue to the stalemate was over new taxes to balance the budget. Gov. Rell pointed out the first budget in April had $3.3 billion in new taxes and that her resistance resulted in the smaller figure of $900 million in new taxes in the September 1 budget, which she refused to sign.^[8]

Connecticut’s General Fund budget for FY 2010 is $17.375 billion and $17.591 billion for FY 2011. The budget package includes transfers of $1 billion in FY 10 and $319.7 million in FY 11 from the Budget Reserve Fund (BRF) to the resources of the General Fund.^[9]

[edit] Budget Background

Connecticut’s General Fund had surpluses in the amount of $302.2 million in FY 04; $363.9 million in FY 05; $446.5 million in FY 06; and $269.2 million in FY 07, each contributing toward a total Budget Reserve Fund (BRF) balance of $1,381.8 million.^[10]

The Connecticut Legislature in 2009 passed some cost savings measures that included:^[11]

• Reduction in personnel costs by $701.9 million over 3 years
  • Salary wage freezes
  • Mandatory furlough days
  • Employee retirement incentive
  • Increased employee health insurance contributions
  • New employee contributions to fund retiree health care

The Connecticut General Assembly meets annually, but sets its budget cycle biennially. Once the state's agencies submit their budget requests for the upcoming biennium the Governor reviews, revises and make any necessary additions before submitting the budget recommendation to the legislature on the first session day following February 14th in odd-numbered years. During even number years the Governor submits a report to the legislature on the status of the enacted budget along with any recommendations for revisions and adjustments.^[12]

See Connecticut state budget (2008-2009) for more information.

[edit] Accounting Principles

The Connecticut Auditors of Public Accounts is under the direction of 2 state auditors appointed by the State Legislature; having 2 auditors is unique among the states. Their audit reports are published online.^[13]

The Institute for Truth in Accounting (IFTA) rates Connecticut “Worst” in filing the state’s Comprehensive Annual Financial Report (CAFR) – The annual report of state and local governmental entities. IFTA rated 22 states timely, 22 states tardy, and 6 states as worst. IFTA does not consider Connecticut’s CAFRs, and those of the other states, to be accurate representations of the state’s financial condition because the Generally Accepted Accounting Principles (GAAP) basis does not include significant liabilities for the pension plans and for other post employment benefits, such as health care.^[15] Connecticut’s State Comptroller is responsible for filing the CAFR.^[16]

[edit] Accounting transparency checklist

Comprehensive Balanced budget Timeliness Usability

[edit] The good

• The website has Comprehensive Annual Financial Report (CAFR) dating back to 1995.
• It provides supplements to the budget workup, such as notes.^[17]
• An independent auditor’s report is published.^[18]
• The budget is posted using organized and consistent methods of financial reporting.
• Connecticut law requires a balanced budget and prohibits a deficit at the end of the year to be carried over to the following year.
• It includes all costs incurred by the government, including future liabilities on page 13 of the PDF format version.
• The CAFR is posted in HTML format, so it’s searchable online.

[edit] The bad

• The Connecticut Comptroller’s office was not timely in submitting the budget.^[19]
• The CAFR does not compare estimated and actual budgetary numbers.

[edit] Economic Stimulus Package

Connecticut is expected to receive approximately $3 billion from the $787 billion economic stimulus package.^[20] According to White House officials the stimulus bill is estimated to create or save 41,000 jobs.^[21]

According to preliminary reports Connecticut is expected to receive:^[20][22][23]

• $1.3 billion for health care costs
• $84 million to modernize the unemployment insurance system
• $29 million for worker retraining and employment services
• $487.5 million for infrastructure projects
• $302 million for rebuilding and improving roads and bridges
• $137.5 million for transit formula funding
• $36 million in public housing capital funds
• $11 million in Community Development Block Grant funds
• $19.7 million for the Drinking Water State Revolving Fund
• $48.8 million for the Clean Water State Revolving Fund for clean water and waste water projects
• $5 million for the Head Start program
• $80 million in stabilization funds for public safety
• $443.5 million in state stabilization funds for education

[edit] Budget transparency

Connecticut currently has no statewide, official spending database online.

[edit] Website evaluation

Budget Usability Elected Officials Administrative Officials Ethics Audits Contracts Lobbying Public records Taxes

Ct.gov is the website for the state of Connecticut.

• Main article: Evaluation of state websites

[edit] The good

• Site provides comprehensive information on the state Freedom of Information Council and how to request records.^[24]
• State officials are listed with contact information under respective office/department.^[25]
• Provides information on the office of state ethics.^[26]
• Budget is published.^[27]
• Labor contracts are available.^[28]
• Individual^[29] and business tax information is posted.^[30]

[edit] The bad

• Site has a search function, but is somewhat difficult to navigate through.
• Financial audits are not available.
• Comprehensive list of current state contracts is not available.
• Some lobbying information is posted^[31], no information provided on state-paid lobbying, registered lobbyists, and agency lobbying contracts.

[edit] Economic Stimulus Transparency

• The American Recovery and Reinvestment Plan of 2009 designated $787 billion to be spent throughout the U.S. Of that $787 billion stimulus package, it is estimated that 69%, or over $541 billion, will be administered by state governments.^[32]

• It is estimated that Connecticut will receive at least $1.8 billion in federal funding.^[33]

• The economic recovery website for Connecticut is available here.

[edit] Error in ARRP

On November 16 and 17, 2009, many errors were found in the $747 billion plan that showed the plan set aside money for districts that do not exist. According to Recovery.gov, the plan shows its funds will go to 884 Congressional Districts, though there are only 435.^[34][35]

Connecticut's 8 new phantom districts, according to the ARRP website, had explosive job growth in the fictitious 42nd District. There were 25 jobs created there, despite receiving 0 stimulus dollars.^[36]

[edit] Legislation

Main article: Connecticut transparency legislation

• House Bill 5954 ^[37] would establish a government transparency website to enable the public to track state spending and to promote transparency.
• House Bill 5959 ^[38] would require the Office of Policy and Management and the Office of Fiscal Analysis each post the state budget on their respective web sites.
• House Bill 5962 ^[39] would establish a searchable online database of state expenditures.
• Senate Bill 340 ^[40] seeks to enable easier public examination of all state contracts.
• Senate Bill 521 ^[41] would require full disclosure and transparency in state contracting.
• Senate Bill 523 ^[42] would establish a state website tracking the award of state grants and contracts.

These bills have been referred to the Joint Committee on Government Administration and Elections. Another transparency bill, HB 5097, which would provide online access to the state budget, has been referred to the Appropriations Committee.

[edit] Government tools

The following table is helpful in evaluating the level of transparency provided by a state spending and transparency database:

[edit] Limitations and Suggestions

[edit] Support for creation of the database

The National Taxpayers Union and Citizens Against Government Waste urged Connecticut's government officials to create a spending database.^[43]

[edit] Independent transparency sites

None.

[edit] Public employee salary information

None.

[edit] See Also

Connecticut taxpayer-funded lobbying

[edit] External links

• Model transparency legislation from the American Legislative Exchange Council is available at this link.
• Yankee Institute for Public Policy
• Connecticut Office of Policy and Management
• Connecticut General Assembly
• Connecticut state site
• Connecticut Government spending

[edit] Additional Reading

• Gov. Jodi Rell's budget address for FY 2010-11
• MSNBC,"Find out who make the state's biggest buck," February 26,2009

[edit] References

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	v • d • e State of Connecticut Hartford (capital)
Transparency	Freedom of Information Act | Open Meetings Law | Government corruption reports | Transparency Legislation | FOIA procedures | Transparency Advocates |
Divisions	State | List of Counties | List of Cities | List of School Districts | Evaluation of State website | Evaluation of county websites | Evaluation of city websites | Evaluation of school district websites |
State spending	State budget | State salaries | Stimulus allocations | Taxpayer-funded lobbying |
Government	Connecticut State Constitution | Executive | House of Representatives | Senate | Local officials | Public school system |
Judiciary	Connecticut Supreme Court | Superior Courts | Appellate Courts | Judicial Nominating Commission | Judicial news |
Ballot Measures	2008 Ballot measures | List of ballot measures | Amending the constitution | History of direct democracy |