Trying to capitalize on the bipartisanship that led to a budget deal for 2010 last week, Republican Gov. M. Jodi Rell offered a new plan Monday – including an early retirement plan for state employes – to solve the state’s ongoing fiscal crisis for the next fiscal year.<\/p>\n
In an unusual display of cooperation, Rell stepped outside of her Capitol office after the meeting and stood side-by-side with the top Democratic and Republican leaders to declare they will continue working together – after several vetoes and essentially a full year of sometimes-bitter clashes over financial issues.<\/p>\n
When asked if she believes the two sides can reach a deal for the 2011 fiscal year before the legislative session ends May 5, Rell responded, “I’m always optimistic.”<\/p>\n
Rell and the Democrats agreed not to discuss the plan in detail because it is still being reviewed by fiscal analysts in the coming days.<\/p>\n
But insiders said the plan includes an early retirement proposal for state employees, which would save money in the short-term by prompting the departure of highly paid employees who would be replaced by lower-paid, new employees. Rell said the early retirement is “one of the things” that she has asked Democrats to consider in the plan.<\/p>\n
“There are no taxes and no cuts to municipal aid,” Rell told reporters outside her suite of offices.<\/p>\n
The plan also assumes that the state will receive about $356 million in federal stimulus funds to close a projected deficit of about $725 million for the fiscal year that starts in July. Another idea being discussed is deferring another payment of $100 million into the state employees’ pension, but some lawmakers say that is essentially a shell game because the money must eventually be paid and no one’s pension is being reduced. An initial $100 million was deferred for the current fiscal year, and another $100 million is being discussed for the next fiscal year. The legislature, however, would not be requeired<\/p>\n
Republicans are also asking for $150 million in additional concessions from the state employee unions, but the unions have rejected that idea.<\/p>\n
“Obviously, it is totally up to the unions,” said House Republican leader Larry Cafero of Norwalk. “It’s a unilateral thing.”<\/p>\n
When asked if the Democrats would support additional union concessions, House Speaker Christopher Donovan – a major union supporter – said, “We’re looking at the governor’s proposal right now, and it’s not in there.”<\/p>\n
Besides attempting to close the gap, Rell and lawmakers are trying to find the best way to borrow $1.3 billion to cover operating costs for the 2011 fiscal year. Under the law, they must find a way to “securitize” certain revenue streams to pay off those bonds. Despite a formal rejection by the Democratic-controlled legislature, Rell said Monday that she still supports legalizing the keno electronic gambling game and using about $60 million in keno revenues each year to pay off the bonds.<\/p>\n
The Democrats have responded by saying they would use revenues from utility customers of the Connecticut Light & Power Co., which has ignited an intense campaign by CL&P with newspaper and radio advertisements that rip the proposal.<\/p>\n