Guglielmo Statement Fiscal Accountability Report to the Legislature

November 24, 2014

Hartford, CT – State Senator Tony Guglielmo (R-Stafford) released the following statement today re: fiscal accountability report submitted to the legislature by the non-partisan Office of Fiscal Accountability and the Governor’s Office of Policy and Management.

“By all accounts Connecticut faces a deficit of approximately $100 million this FY2015 and deficits of nearly $3 billion during the next two years. But despite that bad outlook the administration continues to borrow on the state’s credit card and refuses to say we are “in deficit.”

“Earlier this week, Governor Malloy and the bonding commission allocated $266,970,253 in new General Obligation bonds. That pushed the state $167 million over the governor’s self-imposed soft bonding cap of $1.8 billion.

“Bonding for more projects while the state is facing projected deficits is making a bad situation worse. We’re really going to end up with a cash flow problem.

“As of today the state has approved $6.8 billion in projects but has not funded these projects. Just three years ago the state had $3 billion worth of projects approved for bonding. The rapid pace at which these projects are flying through the process without the state having money to actually pay for them is alarming.

“In 1992, after the state income tax was made law voters demanded a spending cap be put in place to safeguard against irresponsible financial decisions. This administration has now effectively turned its back on that cap.

“In Connecticut, our per-taxpayer debt burden is more than $44,000 and 13% of the state budget is dedicated to paying down debt. The State Treasurer’s letter of Nov. 18 explained that the state cash position had deteriorated to the point that money was transferred from bond proceeds to cover operating expenses. I am extremely disappointed that the practice of borrowing to pay for daily operating expenses and excessive bonding is taking place.

“Our goal should be to find a long term solution. Leadership means working across the aisle and accomplishing this goal for the good of the people. If we do not lead together, it may be too late to save the state from fiscal doom.”