Colin McEnroe Show: Dan Malloy On Connecticut's Massive Budget Deficit
Governor-elect Dan Malloy explains his take on the massive budget shortfall.
In his first WNPR interview since the election, governor-elect Dannel Malloy went a little further than he has in the past in talking about the relationship that cuts in government spending and tax increases will have to play in addressing the size of the state's budget crisis.
Perhaps even more surprising, later in this same show, House minority leader Larry Cafero (R-Norwalk) said that -- although only when government spending is slashed to the bone and no more cuts can be made without shredding the safety net -- he might be willing to support a tax increase. Cafero said he could only support an across-the-board tax increase in which the percentage pain is borne equally among all income sectors.
Malloy also said be believes there's room for bonding to fund infrastructure construction projects and that he considers housing to be part of infrastructure.
After a long and grueling campaign, Malloy said he still doesn't plan to take more than a few days off before stepping into his new duties.
Listen to the whole 30-minute interview, plus analysis by the Hartford Courant's Dan Haar and comments by Cafero, by clicking on the audio.
The good news for Dan Malloy is that he's going to be our next governor. The bad news for Dan Malloy is that he's going to be our next governor. He needs to hit a home run by leading Connecticut through an economic recovery, and before he even starts, they've moved home plate back. There's a $3.4 billion deficit looming. The whole budget is $19 billion, so that's a pretty scary percentage.
It's a nearly impossible dilemma. The state desperately needs to make all kinds of progress, and there's no money to push it along with. But if we don't progress, if we don't improve the economic outlook, there'll be even less money in the next cycle.
And he wanted to be governor why?
Leave your comments below, e-mail colin@wnpr.org or Tweet us @wnprcolin.
UPDATE: Listen to voices from West Hartford Center talk about their expectations for governor-elect Dan Malloy. Click on VOX gathered by WNPR's Charles Desrochers underneath audio for the show.
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I don't want to borrow money but I can't tell you I won't borrow money. I don't want to cut state services to the bone, but I can't tell you I won't cut state services to the bone ... we're going to be realistic.
Comments
budget deficit
I think that people who have a mini forex account will do well in this time of crisis. We all need extra money and I think that investing in specific stocks can help with that. The deficit today is proof that money was not invested the right way.
E-mail from Jim
I contribute to and listen to NPR, enjoying many of its talk and news programs. I listen to your show when I can. Usually, I enjoy your broadcast as it can be informative and funny by turns. Yesterday I was able to hear your interview with Dan Malloy, the candidate I supported, and was especially impressed. While your questions of guests usually are insightful and intelligent, they were especially so with Mr. Malloy. It was a really fine, if not great interview. Thank you.
E-mail from Dennis
Thanks for taking my call with the governor elect. I was very excited to have the chance to get his feelings as I was listen to your interview and kind of vicariously pick his brain!!
My interest in "Green Energy Credits" comes from my background in my profession in Power Generation and 2 friends I have who are in the finance and construction of PV Solar Projects, My finance friend has clients who are constructing large scale operations in New Jersey, where the tax credits make the math work well. The other is an electrical contractor whose firm does the construction and installation of the projects.
Prior to being offered the position at the Capitol that I currently have, I worked the start up at the Co-Generation Plant at Kimberly Clark in my hometown of New Milford. That particular facility was transformed from the most expensive production facility for KC in all of North America to the lowest cost production facility. The state had participated with a significant level of funding and it paid off. I am hoping that Mr. Malloy has the chance to see a renewed energy bill with less attachments than the last one and be the fulcrum to changing the dynamics of the equation of power production, cost and the wave of the technology of the future.
I have often looked at the old landfill off I-91 and thought what a great place to set up a wind turbine and solar farm and use that space to produce cheap, renewable, and sustainable energy. It also would be a grand showcase and ISO New England would buy the power and the land would generate revenue. Now multiply this with every secondary school (and higher ed facilities) in the state having solar panels installed (and remember schools are not in session in summer, so base load is low and output is high) and generating power, revenue and jobs.
I was further surprised to hear Dan Haar was next on. I had sent him somewhat scathing email (for me) expressing displeasure that his great article was written the day after the election instead of during the debate periods so his points could be brought forward when they mattered. Dan did write back to me, explaining that he is doing the job of 3 persons and questioning if the article would have made a difference if issued earlier. I told Dan that believe it would have been a great contribution and would have held the candidates feet to the fire to realistically address the budget issue. I feel Dan';s expertise and knowledge on the fiscal issue is second to none.
Larry always gets the staff's attention when he speaks in session. I believe part of it is because when he addresses the assembly, the session is about to end, He also is a great speaker. Unfortunately in his oratory he continually proposes "cutting spending" but never says with any specifics what he wants cut. It is an opportunistic sale to say ..don't spend more than you take in, but I need specifics from his team to see where their real interests and values lie.
So I predict, the graduated tax will pass, state employee pensions will either be modified or sold off to the Union ala the UA and GM prior to GM's bankruptcy. sales, gas, beer and cigarettes will probably see increases as well. Larry's group will probably push for Bradley to be sold, but "one shots" like that have caused a lot of state budgets to hide increases against the sales. Did you know that the state of Arizona sold it's capitol building to cover a budget shortfall and now rents it back? This is a "one shot" example I refer to.
I listened to a NPR show a few months back when Richard Ravitch of New York was explaining his work on a blue ribbon panel of experts who were analyzing New York State's budget and finances. Mr. Ravitch was one of the members of the group that engineered the financial rescue of New York City in the mid seventies. He spoke of these "one shots" and contrasted that with the plan the group devised. The plan consisted of a combination of tax increases, spending cuts and short term borrowing to cover the holes until the cuts and increased revenues could take hold.
So the legislative leaders in New York could not get passed the borrowing aspect, Governor Patterson was not in position to push the paln own from his own commission of experts and the plan sits in on the shelf as the assembly in New York State continues to do the same thing they have been doing and expecting a different result.
I hope we can do better than that.
Thanks again for a great and informative show today!!
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