THE HARTFORD COURANT THURSDAY, FEBRUARY 27, 2003 A17 THE BUDGET BATTLE Rock 'Em, Sock 'Em Budget Battle Tires Out Legislators As State Struggles To Strike Fiscal Balance C1CTVTA r.rT?. -it -Tip MiT.flj..jwBi it I House-Passed Deal Pleases Few, But Budget Process Churns On 1 I NX if SHANA SUREK THE HARTFORD COURANT AFTER AN all-nighter in the House of Representatives debating the budget bill, Rep. Robert Godfrey, a Democrat from Danbury, gets a nap before the chamber voted to approve a budget deal that pleases few. The measure has been passed to the Senate. i i tling at more than $2.2 billion in the current fiscal year.
"It's a loss for the taxpayers," said New Haven Mayor John DeStefano, a virtual fixture lately at the Capitol who spent part of his day Wednesday trying to persuade senators to roll back some of the municipal cuts. "Cities and towns are going to have to raise property taxes and diminish services. This is not a broad solution to the state's budget problem and is just another band-aid approach." New Haven will be losing about $2.8 million in municipal funding, the largest amount of any city in the state. "We have come with a plan to mitigate the budget deficit we will now be faced with, the first in a decade," said DeStefano. "It is self-evident that artificial deadlines were set to compel people to make decisions that were not based on common sense." James J.
Finley associate director for the Connecticut Conference of Municipalities, staked out the house all-nighter, trying to monitor budget developments. "I am deeply disappointed and the negative impact of this budget decision is that there will be layoffs and diminished services to people in towns and cities," he said. "The delayed reaction is that businesses and residents will pay." Calling it one of the most unusual sessions he has ever seen in his 20 years as a CCM representative, Fin-ley said it was clear that it was difficult for some legislators to have their voices heard. By CHRISTOPHER KEATING and MARYELLEN FILLO COURANT STAFF WRITERS After a roller-coaster day at the fCapitol, the state Senate was prepar- ing to vote Wednesday night on a defi-scit-cutting package that goes far beyond the original concept of a tax" and now would increase taxes on individuals earning as little as $22,500. With massive cajoling by Gov.
John G. Rowland, 29 Republicans in the House of Representatives joined with 50 conservative and moderate Democrats to approve the package at 9:40 a.m. Wednesday after an all-night marathon of backroom dealing and arm-twisting. It was a day of high drama as legislators were headed back to their homes as far away as Bridgeport and East Haven before being summoned back for a debate that did not even begin until about 6:30 am. Wednesday.
Working simultaneously, Rowland, House Speaker Moira K. Lyons and House Republican leader Robert M. Ward used the power of their offices to whip recalcitrant Republicans and Democrats into line for a vote that made virtually no one happy. But Rowland and legislative leaders said the unpalatable package had to be swallowed in order for the state to avoid borrowing $650 million for operating expenses in the current fiscal year. Even those who voted for the package were grumbling, saying they did not favor controversial tax increases and painful spending cuts, i "The entire process has been nothing but an exercise in frustration, so why should today be any different?" asked Senate President Pro Tem Kevin B.
Sullivan of West Hartford. "It's painful for people to make decisions. The only choice that people are being asked to make is whether the state should borrow $650 million in cash and pay back about $1 billion over the next five years," including interest Sullivan said he does not like the package, but feels the state is running out of time to close the budget gap. The legislature, Sullivan said, should have passed a bill about two weeks ago that included higher income taxes, which he believes Rowland would have signed. The bill calls for increasing the state income tax for joint filers earning more than $44,000 annually, heads of households earning more than $35,000, and individuals earning more than $22,500.
Those increases would have been unthinkable last year when Rowland vetoed a Democrat-approved tax increase on anyone earning more than $1 million per year. The bill also includes imposing the 6 percent sales tax on newspapers, magazine subscriptions, health clubs, and advertising services that include the creation and design of ads. The cigarette tax would be boosted by 40 cents per pack, to $1.51, starting on March 15, and the conveyance tax on real estate would be increased on all commercial and residential property. "This new sales tax on the purchase of homes represents a huge increase and an unfair tax burden on a very small portion of the taxpayers in the state," said Denise Robillard, president of the Connecticut Association of Realtors. Some legislators shook their heads Wednesday, saying they were stunned at how a proposed increase on millionaires had now dipped deeply into the middle class.
"It's unconscionable to me that Democrats would support a half-a-percentage point across the board on people, regardless of whether they make $50,000 or $1 said Sen. Thomas Gaffey, a Meriden Democrat. "It just does not make any sense whatsoever. I don't get it. It's a huge victory for the wealthiest people in the state of Connecticut" Gaffey favored a sharply progressive tax rate, including charging as much as 6.5 percent on Incomes over $2 million.
The Senate vote was delayed Wednesday night as legislators and lobbyists cleared out of the Capitol for nearly three hours for the sixth annual Italian-American legislative publican governor's budget It's rather inappropriate." Fleischmann, a member of the liberal faction among House Democrats, called the scene chaotic and confusing. "At one point I asked what amendment we were voting on, was given the wrong document and voted on it," he said. "I have never done something like that I blame leadership for pushing through a process and pushing it so fast that no one seemed to know what was going on." Several people, including Fleischmann, complained about an e-mail that was sent out early in the evening warning legislators that it was critical that a budget be passed before today, when the governor was supposed to deliver his new budget proposal "It was a false deadline just to get people nervous," he said. But Rowland and some Democrats praised the work by Lyons, saying she rallied support in a deeply divided caucus that ended up with 50 votes and had four more Democratic votes if she needed them. Despite spending hours in the hallways meeting with legislators, municipal leaders could not stop a cut of $41.2 million in aid to municipalities, and they were already planning on how to absorb the eleventh-hour cuts in their own 2002-03 budgets.
The mayors have complained bitterly about the cuts, but others said that the cities and towns received record-breaking amounts of cash from the state in the booming 1990s before set 1 i' caucus dinner, which raises money for college students. The long-planned dinner at the Sons of Italy Hall in Middletown was organized by Democratic Sen. Biagio "Billy" Ciotto and Senate Republican leader Louis C. DeLuca, two friends who have spoken on the Senate floor about their Italian heritage. "It's Billy and Lou," Gaffey said.
"That's the most bipartisan thing that's happened in this building. They ve agreed to go to dinner." As of 9 p.m. Wednesday, the debate had not yet started in the Senate. Earlier in the day, the House struggled with the herculean task of trying to close the projected deficit of $650 million in the current fiscal year and as much as $2 billion in the fiscal year that starts July 1. The increased taxes, which would help reduce the current year deficit, also would sharply reduce next year's deficit as they continued into the new budget year.
Rep. Andrew M. Fleischmann, a pro-union Democrat from West Hartford, called the night an "unprecedented" one, that included false, intimidating deadlines, a captive audience, sleep deprivation, calls for party loyalty and the calling-in of favors. "They were working people over to get votes," said the five-term representative who voted against the plan. "For those being worked on, it was a pretty unpleasant position to be put in having the Democratic leadership pressure you to support a Re if I i i "Based on some of the actions of some legislators, it is difficult to believe that they really understand the negative impact of what they are doing or what the real world is like." Indications were it was going to be a long night, with few if any legislators bargaining for the all-nighter that ensued.
"We weren't prepared physically for this," said Rep. John Geragosian, a New Britain Democrat who voted against the final budget proposal Critical of the final product that he called "another example of Rowland taking care of his rich friends," Geragosian said the whole situation was very discouraging. Rep. Lydia Martinez, from Bridgeport, was one of many very tired and disgusted legislators who warned that while the mounting pressure to pass something combined with an all-night marathon might have prompted some to change their minds and support the plan, it won't happen again. "I ended up supporting it Moira needed the votes," said Martinez.
"It was not a good situation at all because everyone was sitting around after we had pizza and salad at around 7:30, watching television, discussing bills and waiting for someone to give us some information," she said. "AD we knew was that Moira was trying to sway Democratic votes, while the governor was doing the same thing with the Republicans." "So I figured as long as the people in need could still get insurance I would support the budget" she said. "I mean no matter what has been proposed there is always someone who is not happy." "It's not what we need but I am at the point where I just want to get it done," the third-year Democratic legislator added. "But I told Moira don't expect me to support anything like this In any similar budget that comes up for the next two years." Others avoided the escalating pressure as the night wore on, by simply staying out of the final fray. "I couldn't support it" said Democrat Mary Mushinsky.
Mushinsky voted against two of the amendments leading up to the final budget vote, but was one of four legislators who did not vote on the final budget plan. Clearly uncomfortable with talking about her decision, Mushinsky stated repeatedly she did not support the budget and felt there was nothing wrong with taking no formal action. "Moira wanted my support but there were some communication problems and when she saw me voting against the amendments I guess was surprised," said Mushinsky of Walllngford. "I feel not voting on the budget was as effective as voting against It." The text qf the full budget bill is available on ctnow.com. i 1 v-i! y- UKI-H lHt HAH I K)HU 1 GOV.
JOHN G. Rowland meets with Republican legislators after th House passed a budget deal. From left, Lawrence F. Cafero R-Norwalk, deputy minority leader Brian Flaherty and minority leader Robert M. Ward..
