Governor's budget II

In my previous post I mentioned that I had only skimmed over the Governor's comments. As well, I suggested that she did not mention the $36billion (or so) in underfunded postretirement benefits. Well, I read the speech again and she mentioned the $36billion. So I wanted to give her credit on that. Aside from reducing our dependence on foreign oil, I'd say (off the top of my head) this is probably the single most important issue that can be addressed by our state government.

But while that is important, I did find the following a bit peculiar:

I am also establishing a high level advisory group -- to prioritize projects that link transportation, housing, and job creation. They will be charged with developing a $20 million Responsible Growth Incentive Fund.

No plan for the future can be complete without a plan for dealing with energy issues.

Thing is, how do you address "energy issues" without linking them to transportation and housing? 97% of America's transportation equipment runs on oil. And housing consumes huge amounts of electricity. Heck, NYC is a leader in conserving electricity because they've done things such as replace all old refrigerators in city-owned housing with new energy-efficient refrigerators... you just need to look at the lifecycle cost to see if it makes financial sense. Anyway, I was a bit disappointed to see "energy" didn't get "a seat at the table," per se.

All'n'all though, the biggest thing for me is the hike in the state income tax. Which, btw, doesn't appear to be a winner for Cheshire. As Dave Schrumm mentioned during tonight's meeting, Cheshire is only expected to get an increase of $69,000 in the state budget. Click to see details here:

Then compare that $69,000 with this estimate of Cheshire's tax increase for a 0.25% income tax hike for next year (then another 1/4% the following year):

households: 9,000
median household income: 80,000
total Cheshire income: 720,000,000
% income tax increase: 1/4%
$ income tax increase: 1,800,000
$ state funding increase: 69,000

If I have my facts and figures right (which they may very well be off, so please correct me), Cheshire loses.

Curious twist on the budget though... I wonder if Governor Rell has a political motive here... say... go to the left of the Dems, raise taxes and... in two years... when she's not running for election, give the Republicans a fighting chance of picking up some seats in the legislature?? Haha... I doubt it. But who knows? I'm guessing there must be some reason for this budget proposal.

Tim White
Town Council, Budget Committee