Connecticut Commentary: Red Notes from a Blue State

Before Governor Jodi Rell presented her budget address to the assembled legislature, she had issued warnings that serious cuts would be necessary to balance a budget that, looking down the road, was around $8 billion in the red, a figure certain to increase. But the most immediate problem facing the legislature was a short term current budget deficit of about $1.35 billion, a more manageable figure. Connecticut had not faced these kind of deficits since its last pre-income tax budget. The state chose to settle the last pre-income tax budget deficit by instituting an income tax proposed in the early 90’s by then Gov. Lowell Weicker. The $8 billion deficit the state of Connecticut now is facing is larger than the last Gov. William O’Neill pre-income tax budget of about $7.5 billion, and naturally all legislators and the governor wish to be regarded as serious in discharging their fiduciary responsibilities. Unlike the federal government – which borrows money from foreign entities and may...