Social Action Alert  Social Justice Committee Presbytery of Southern New England January 2002

Suite 1 44 Pond Road Old Saybrook CT 16475-2137 860.388.0874

Connecticut Legislative Issues – 2002

• 19,500 people have lost their Connecticut jobs in the present recession. An additional 20,000 losses are forecast.
• 539 FAMILIES have exhausted their LIFETIME public assistance benefits in the last four months. That's more than 1,500 children, according to the CT Alliance for Basic Human Needs (CABHN).
• A mother, an infant and a school age child living in New Haven needs an hourly wage of $16.75 to be self sufficient. In Stamford, it would be $22.29. In Hartford, $15.83. These 1998 numbers are from The Self-Sufficiency Standard for Connecticut, calculated according to an act approved by the Legislature. Connecticut's present minimum wage is $6.70.

• The single most important thing people of faith can do today is get involved in their government.
• The next – insist their elected officials meet the needs of our citizens before resolving budgetary problems. If you need help contacting your state senator and representative, call your town hall or look them up at http://www.state.ct.us/direct.htm

• Medical costs, particularly pharmacy, have risen dramatically. This limits the expansion of insurance coverage to poor parents and children. It may lead to reduced benefits for the poor elderly.
• We are near the practical limits of borrowing. Additional bonding will significantly increase interest expenses.
• It is a gubernatorial election year.

• Only about 20% of Connecticut's budget is discretionary – that's why human services keep getting hit. But there are ways we could do a better job.

1. We claim only a small portion of the Federal funding we are entitled to. In fact, we're second to last in the amount of coming back our of each dollar paid in federal taxes.
2. We need to carefully review the taxes we choose not to collect. In the current fiscal year, projected losses are $3.73 billion or almost 29% of projected revenues of $12.99 billion. Are ALL these tax breaks warranted and beneficial? Who gets them? Why?
3. Consider a time limited increased top rate on our wealthiest taxpayers to bridge the current deficit gap. Joseph Steiglitz and Peter Orszag write that in the absence of new federal revenue sharing, "...tax increases on higher income families are the least damaging mechanism for closing state deficits in the short run."
4. Consider bonding. While there are important limits, we have recently paid for some long term capital projects (like school replacement/repair) out of surpluses. Normally these would be bonded.
5. Spend wisely. Why are we considering cutting community mental health programs? It costs some $26,000 a year to incarcerate a non-violent felon. Recidivism is around 66%. Rehab costs around $4,000 and is much more successful.
6. Recognize it really is raining. We have $594.7 million as of 1 June 01 which could be devoted to economic disaster avoidance!