Hwang Votes Against State Tax Hike and Spending Increase

With a looming state budget deficit of historic proportions, a majority of legislative Democrats on the budget-writing Appropriations Committee voted in favor of a budget adjustment adding $700 million in taxes for 2011 Fiscal Year – on top of the $1.5 billion in new taxes enacted only seven months ago and a projections of a looming $4 billion deficit in 2012.

Rep. Tony Hwang (R-134), member of the Appropriations Committee called the effort a continuation of the failure of the legislative leadership to properly deal with the budget deficit and the economic realities of the day and honestly represent the best interest of the people of Connecticut.

“This is nothing short of a complete abdication of responsibility on behalf of the legislative leadership,” said Representative Hwang who voted against the proposal. “At a time when meaningful cuts are needed the leaders of this committee have decided to raise taxes and actually increase spending by $346 million over the currently adopted 2011 Fiscal Year. “

Hwang noted that with nearly nine percent unemployment in the state, businesses closing daily and families struggling to make ends meet in this economy, the legislature is still unable to rein in any significant spending. “Connecticut families have been making personal and financial sacrifices and spending less for the last two years,” said Rep. Hwang. “And now the leadership of the Appropriations Committee and the legislators who voted for this budget are apparently telling Connecticut residents that they aren’t paying enough in taxes and fees. It’s simply outrageous.”

The budget passed by the Appropriations Committee imposes a new 5.5% tax on hospitals, increases spending by $758 million (4%) over this year’s budget, and fails to take into account any proposals that the Governor or Republicans have offered such as agency consolidation, fraud protections, elimination of waste and duplication of services or any privatization of state services. The Appropriation Committee also used accounting gimmicks such as re-allocating operating costs for programs such as school based health centers from the General Fund away from the budget calculations to the Insurance Dept budget, which is funded with payments from the insurance industry.