He’s Not Done Yet! Malloy Proposes More Bonding, New “Revenue” to Fund Transportation ProjectsDecember 8, 2017
The governor may be a lame duck heading in to his last year, but he's not done with proposals that could lead to more spending and more taxes.
Gov. Dan Malloy (D-Conn.) is on his way out the door, but that doesn’t mean the unpopular leader of Connecticut is done proposing new spending and new “revenue” that could further impact the state on his way out.
On Thursday, Malloy released a study showing the Special Transportation Fund (STF) is “in growing jeopardy.”
Malloy’s solutions? Bond (in other words, spend) more, and “[add] to the existing revenue streams in the STF” – which opens the door to new or higher taxes.
The key paragraphs in Malloy’s report:
Another potential tool is authorizing general obligation (GO) bonds to offset reduced bonding capacity in the STF. This strategy would require legislative action, but could enable the state to maintain progress on important projects while other revenues are made available.
Finally, there is no denying that adding to the existing revenue streams in the STF will need to be considered in the near term to avoid significant reductions in transportation services and increased fares. More gradual changes that would address greater investments in capital programs could be implemented over time. In the coming weeks, in preparation for the 2018 legislative session, the Malloy administration will put forward specific proposals on this front.
At Reclaim Connecticut, we’re guessing Connecticut voters will have little to no appetite for more spending and more taxes, with the state facing a $200 million deficit this fiscal year, and deficits in the millions and billions in years after.
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