Better Choices for CT - What Rell's Veto Means

Governor M. Jodi Rell Monday announced she has vetoed House Bill 7101, An Act Concerning the Estate and Gift Tax, and Senate Bill 2101, An Act Concerning a Deficit Mitigation Plan for the Fiscal Year Ending June 30, 2010, calling both bills "...further examples of the Democrat-controlled Legislature’s refusal to confront the reality of the state’s financial crisis by cutting spending. Because the majority party in the Legislature is unable to make the needed cuts, Governor Rell said she is submitting legislation expanding the authority of Governors to make rescissions."

The Governor has also submitted proposed legislation to increase her rescission authority essentially signifying that if the Democrats will not resolve the deficit through cuts to bring the budget into balance, then she is willing to do so if given the authority. Under existing law, a Governor can make rescissions when a budget deficit exists that is greater than 1 percent of the General Fund. Current rescission authority is limited to up to 3 percent of the total appropriation from any fund or 5 percent of any appropriation.

Governor Rell is proposing that a Governor’s rescission authority be increased incrementally:

* Up to 6 percent of the total appropriation from any fund or 10 percent of any appropriation when a deficit of 3 percent or more exists
* Up to 10 percent of the total appropriation from any fund or 15 percent of any appropriation when a deficit of 5 percent or more exists

Unless the Democrats are able to successfully override the Governor's veto, all cuts in the Deficit Mitigation Plan previously submitted by the Governor, are back on the table.