Two of the most powerful political leaders in the state – Republican Gov. M. Jodi Rell and House Speaker Chris Donovan – squared off Tuesday over the state budget and the Democratic-controlled finance committee’s votes to close Connecticut’s huge budget deficit.<\/p>\n
They specifically clashed over the complicated borrowing process known as “securitization,” which is mandated in the state budget to fill a hole of $1.3 billion in the 2011 fiscal year.<\/p>\n
Rell wanted to securitize the proceeds from legalizing the keno electronic gambling game, but the committee instead decided to borrow against a surcharge on electric bills.<\/p>\n
Rell said the “proposal to securitize revenue from charges on consumers’ electric bills is not the solution I would pursue. Ratepayers, who have paid these charges for the last 10 years, have rightfully been expecting the charges to soon be expiring – by the end of this year for Connecticut Light & Power customers and in 2013 for United Illuminating customers.”<\/p>\n
Rell added, “Some sort of securitization is necessary. This option, however, is the least desirable for Connecticut’s beleaguered families.”<\/p>\n
But Donovan took issue with those statements, saying Rell was the one who wanted to securitize in her own budget proposal.<\/p>\n
“It was the governor’s proposal to securitize $1.3 billion,” Donovan told Capitol Watch. “I think she’s being less than truthful with the public. … For her to criticize it is disingenuous.”<\/p>\n
He added, “I’m disappointed in her rhetoric. Her rhetoric is less than truthful.”<\/p>\n
In the crafting of the budget last fall for the second year of the two-year plan, a request for securitization was used as a placeholder to fill the $1.3 billion hole. The exact way of how the money would be borrowed would be determined later – which is now.<\/p>\n
“The Republicans and the governor wanted to borrow,” Donovan said. “We went along with the governor. … We did a variation of what she proposed – a slight variation of what she proposed.”<\/p>\n
Democrats said several times Tuesday that the move was not a rate increase for electric customers.<\/p>\n
“It’s funds that the ratepayers are paying,” Donovan said. “It’s a phase-out, but we’re grabbing some of it.”<\/p>\n
Overall, the plan calls for using 56 percent of the current surcharge, which was supposed to be phased out to zero.<\/p>\n
Donovan was surprised at Rell’s comments, which were issued by her press office.<\/p>\n
“Her staff was happy with our proposal for securitization,” Donovan said. <\/p>\n","protected":false},"excerpt":{"rendered":"
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