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Politics & Government

Is Gov. Dannel Malloy Suffering From Cuomo Envy?

Closing Connecticut's $3.5 Billion Budget Shortfall With New Taxes, Spending Cuts, And Union Concessions May Lead To Impasse

“Cuomo Envy” might help explain why Gov. Dannel P. Malloy’s wants to pass a $40.2 billion budget, even before getting $2 billion in union concessions. 

More than a week ago, House Democrats reached a deal with Malloy to close Connecticut’s $3.5 billion budget shortfall with new taxes, spending cuts, and union concessions. After that Malloy moved quickly to get the Democrats majority to approve the budget. And while some lawmakers wonder why the haste, others see it proof that New York Gov. Andrew Cuomo’s reach extends well beyond Albany. 

“Cuomo Envy is the new term I hear. He’s right next door and he’s viewed extremely favorable…off the charts,” said state Rep. Lawrence Cafero, Jr. Republican Minority Leader who represents Norwalk in the 142nd House District. “And, politically it’s not good to have a tax increase budget out there. Malloy’s going to catch a lot of flak the longer it’s on the front page of the news.” 

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Taxing everything in sight

"The governor's taxing everything in sight," said state Sen. Edward Meyer, a democrat who represents Madison in the 12th Senate District. "Everything you can think of, he wants to tax."

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The comparisons between the two 50-something Democrat governors began early. But Cuomo pledged to fix New York’s fiscal fiasco without imposing new taxes. That won him the hearts and minds of New Yorkers; they recently gave their new governor a nearly 80 percent approval rating. 

Malloy too pledged to fix a monetary mess, but with taxes and spending cuts. That won him boos during the UConn Mens Basketball team recent victory march. 

“That says something,” Cafero said. 

Or does it? 

Individual constiuencies broad and diverse

A clear Democratic majority in both houses welcomed Malloy when he took office last January. 

“But now he’s starting to learn that individual constituencies are broader and more diverse,” said Prof. Gary Rose, Chair of Government and Politics at Sacred Heart University.

“So the pull of the parties is still strong, but individual constituencies can interfere. I think he was little too bold to think things would slide right through.”

Sen. Meyer said that he heard that not much progress has been made so far.

"This impasse will greatly affect the rest of the budget," he said, if a deal isn't made by the deadline.

New York and Connecticut don’t compare, said state Sen. Bob Duff, a democrat who represents Norwalk in the 25th Senate District Senate. 

“It’s two different animals,” Duff said. “New York had a $10 billion deficit out of a $132 billion budget. That’s just peanuts compared to our budget. Frankly, a lot of us see that state as a fiscal mess.” 

Opposition from some to any tax increase

As the General Assembly readies to vote several new groups are pursuing democratic senators about the two-year budget plan. One group, the non-profit Roger Sherman Liberty Center, has its eye on five such senators, including Duff. 

The group's president and chairman, Jack Fowler, wants these legislators to oppose any budget that would raise taxes. 

Sen. Meyer did oppose the governor's proposed budget, he said because of the tax increases. He does support a smaller government, less governmental services and downsizing.

"I think we could have a more efficient government that way," he said.

Republican proposal says no new taxes, but makes assumptions

Nearly a week before the House Democrats reached a deal with Malloy, the GOP released its own proposal. It has no new taxes. But like it too assumes $2 billion in union concessions. 

Without firm concessions a vote is meaningless, said state Sen. L. Scott Frantz a Republican who represents Greenwich and part of New Canaan in the 36th Senate District. 

“But if anybody can get them [concessions] it’s Governor Malloy. He’s a tough negotiator. He knows he has to get it otherwise he’ll look weak,” Frantz said. “And if it passes without the concession, it will test the constitutionality of the budget. I would expect a challenge to the budget if it gets voted that way.” 

Threats smack of rhetoric, hyperbole, some say

However, talk of seeking a court injunction against budget implementation smacks of rhetoric, said Sacred Heart’s Rose.

“I don’t know where that’s coming from. It’s hyperbole,” Rose said. “There is no precedence for it.” 

Even so, some lawmakers think voting now is premature. 

Cuts in municipal services likely

If union concessions don’t equal or come close to $1 billion, there will likely be further cuts to municipality services, state Rep. Chris Perone a Democrat who represents Norwalk in the 137th House District. 

“A good chunk of the budget is not yet finalized. If we sign a blank check than what happens if not get them. What taxes will get changed?” said Perone, who sits on the Finance, Revenue and Bonding Commission.

In addition, Cafero said voting too soon ignores the new numbers expected from both Office of Fiscal Analysis and Office of Policy Management. There is a projected $158.3 million surplus in the General Fund, according to the OFA. 

According to the OFA estimated expenditure requirements decreased by $9.2 million and estimated revenues increased by $59.2 million. That translates to an improvement of $68.4 million. These new revenue figures means the state would have a $400 million reserve next year. 

Ignoring additional revenue

“By voting on this you’re completely ignoring this additional revenue,” Cafero said, adding that revised figures will show an additional $200 million more in revenue than Malloy expected when he proposed his budget. 

Yet, Malloy cautioned the General Assembly not to use this unexpected news to restore spending cuts, or reduce tax hikes. 

These taxes worry Frantz’s constituents. He said the majority of emails from constituents are about rising taxes and many talk about leaving the state. As such the GOP’s counter budget proposal includes no taxes. But it too bets on $2 billion union concessions.

Rather than pit the so-called “haves” against the “have-nots” the Republicans said they prefer to whittle the government down to size.

Class warfare "a thing of the past"

“Class warfare is a thing of the past,” Frantz said. “It doesn’t work.” 

As for Cuomo’s reach, Malloy isn’t buying it. During his 17-town budget tour Malloy repeatedly told attendees that the New York governor is balancing his budget on the backs of municipalities. 

So, though some are looking at the Empire State with envy, others are reserving judgment. 

“Perhaps,” said state Rep. Fred Camillo a Republican who represents Greenwich in the 151st House District, “Malloy’s being measured against Cuomo unfairly."

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