Hamzy warns that massive deficit looms

Press release from state Rep. Bill Hamzy, a Plymouth Republican whose 78th District includes northwestern Bristol:

Representative William A. Hamzy:

Warns State Must Address Growing $750 Million Deficit

Supports 3 Month Deficit Patch to Carry State Budget through the Spring

HARTFORD – State Representative William A. Hamzy of Bristol and Plymouth, voted today to close the state’s budget deficit without raising taxes or cutting aide to towns and cities, but he warned that a $750 million fiscal deficit awaits July 1 and must be fixed before the Democratic-controlled legislature adjourns in May. 

The deficit mitigation plan put forth today eliminates only the current $350 budget gap. The plan does not tackle the looming deficit that kicks in July 1^st, only 10 weeks from now, but Republicans pledged to address that within the coming days. For the past two years, Rep. Hamzy and his Republican colleagues in the House championed closing the deficit without raising taxes or cutting aide to towns and cities. 

“This is a first step. As I and many of my Republican colleagues have said before, we can plug the deficit without raising taxes or cutting aid to local municipalities. The $750 million budget hole that begins July 1, 2010 will only grow with legislative inaction. We need to begin starting tomorrow to make the tough cuts and to find government efficiencies,” said Rep. Hamzy.

The current state budget, with the $350 million deficit, was adopted last September without any Republican votes. For the last 8 months, state operated with a growing deficit due largely to the inaction of the legislature.

With record unemployment and with both families and employers alike pinching pennies, Rep. Hamzy expressed now is not the time to raise taxes or utility prices for families or those providing their jobs. “The Democrats raised taxes last September by $1.2 billion and we are still facing a $700 million gap. Raising taxes when we have record high unemployment at over 9 percent is not the answer,’’ he said.

Republicans said they are prepared to vote to eliminate the projected deficit for the 2011-12 budget year beginning July 1. The budget hole, he said, can be filled with targeted spending reductions, government efficiencies and no tax hikes. Republicans in the House refused to consider any tax increases on income, sales, large family homes, electrical bills, hotel rooms, or hospitals to cover the deficit. Rep. Hamzy specifically opposed any version of proposed tax hikes on sick people who become hospitalized, insisting that could not be part of any deficit mitigation plan.

“As we saw this past year, the deficit will only grow with legislative inaction. If the Democrat-controlled legislature chooses to continue doing nothing, the $750 million deficit we face July 1 will balloon into a nightmare. It is our responsibility. We can tackle the deficit without raising taxes or cutting municipal aid but we must act now!” said Rep. Hamzy.

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Copyright 2010. All rights reserved.
Contact Steve Collins at scollins@bristolpress.com