Posted 9/3/09

In 1991, when a historic state budget battle ended with passage of a new income tax-based budget bill, independent Gov. Lowell Weicker signed it into law at a hastily-organized ceremony in the Old Judiciary Room of the State Capitol, cheered on by the applause of the legislation’s supporters.
On September 1st, Republican Gov. Jodi Rell announced action that ended this year’s extended budget struggle—a drama that surpassed the 1991 fight in length and aggravation. This time there would be no ceremony. There wouldn’t even be a gubernatorial signature!
Rell told reporters she scoffed at the idea that the $37.6 billion two-year budget plan approved by the Democrat-controlled legislature was a “compromise”. Rell felt she went the extra mile toward a bipartisan accord by offering to endorse the Democrats plan to hike the personal income tax rate for the wealthy, raising new revenues to ease the state deficit. In return, she sought $520 in added spending cuts from the Democrats. But she said that did not happen.
“The Democrats just could not cut, showing they are unwilling—or simply unable—to make meaningful reductions,” said a disappointed Rell. “Worse, in the hours before this budget was brought to a vote, the Democrats had the audacity to add more spending,” she charged.
However, instead of vetoing this budget she did not believe in, the Governor decided to let it become law without her signature. “I do not want, by my signature, to put a stamp of approval on (Democrats) spending, but a veto will not bring significantly different results,” she explained. In other words, vetoing the budget could poison the Capitol atmosphere and add months, not weeks, to the search for a state budget.
The Governor said “the budget crisis has lingered longer than any in state history” and she concluded: “This budget crisis must be resolved. For the good of our state, this crisis is now resolved.”
Rell took one extra step. She used her line item veto powers to strip away some $8 million in last-minute Democratic spending allotments that she contends amount to “new earmarks and pork-barrel spending.” Rell conceded the total is not a big chunk of the multi-billion dollar budget, but she called the extra spending “an insult—a slap in the face of our taxpayers.”
Lawmakers had their own individual takes on Rell’s “action by inaction” decision to put a new budget in place without her signature.
“We now have a budget for the people of Connecticut,” said State Senate Majority Leader Martin Looney (D-New Haven), “that’s the most important thing.” He said Rell’s “no signature” decision showed the GOP governor “ended this fiscal year the same way she began it: by avoiding responsibility.”
Looney also laughed at Rell’s charge of last-minute Democratic “pork-barrel spending.” He claimed she pushed to put into the budget extra funds for her office and the lieutenant governor’s office.
House Speaker Chris Donovan (D-Meriden) said Democrats fought to include “the millionaire’s tax” in the budget while preventing what he called “dramatic cuts” proposed by Rell to trim vital programs dealing with education, health, human services, tourism, and seniors services.
“Though I was disappointed to hear the Governor make such disparaging remarks about our work together, we should all be pleased that she had the wisdom to allow this budget to become law.”
House Minority Leader Lawrence Cafero (R-Norwalk) said he was “disappointed Gov. Rell has decided to accept the Democratic budget.” Cafero predicted “the huge holes this budget creates will once again have to be filled with tax hikes” at some point down the road. He said the Democrats budget will “cause more harm than good” over time.
Who won the budget battle may be determined over the next several months and during next year’s gubernatorial campaign. If Rell is correct, and the spending levels in the budget will force new corrective measures by the legislature this year, or next year—she can certainly sit back and say: “I told you so.”
However, if the U.S. and state economic fortunes improve and the state revenue stream picks up in intensity, Democrats may come out of the struggle looking good. They refused to cut spending in programs they viewed as important, and separated the budget crisis from the economic crisis.
Many observers believed the Democrats “road show” of press conferences painting Rell as a hard-hearted governor who wanted to cut emergency medical helicopter services, healthcare, and library funding was designed to “beat up” her image—perhaps persuading the popular Republican governor to decide against a reelection bid next year.
Certainly the protracted budget battle had to grate on Rell, but instead of pushing her out of the campaign—it could persuade her to run again, to prevent the top state office from being taken over by those “spendthrift” Democrats who already control the General Assembly.
So what will happen? Rell told reporters the budget battle with Democrats has “give me a lot more encouragement” and she added: “I am more invigorated than ever.”