The following appeared on the May 11,
2000 Op Ed Page of the Hartford Courant.
As of September, 2003, the State’s bonded debt has grown to $12
billion.
LAWMAKERS ON WILD SPENDING SPREE
By: Susan Kniep, Vice President, FCTO
The next time your local state representatives
knock on your door, ask for your vote and become almost giddy telling you all
the wonderful things they have done for you, ask them: "How much did it
cost me?"
State representatives are on a spending spree
with taxpayer money. If they want something and it is not within the budget,
they simply take a loan. They have indebted the state to a point of
distinction. Connecticut now has the highest per-capita tax supported bonded
debt in the nation which equates to $2,857 for every man, woman and child
within out State. In 1999, our bonded debt grew by $56 million to $9.4
billion per State Comptroller Nancy Wyman. Ms. Wyman appears to be
the only one concerned for this growing debt. As this debt is not part of
the State’s operating budget, it receives little attention.
Its impact, however, on the State taxpayer and our children is significant as
we pay interest on these loans. On the current $9.4 billion
debt, we are anticipated to pay $5 billion in interest. Of the $1.28 billion
payment made on the debt in 1999, $520 million constituted
interest. The recently approved Adrean’s Landing deal calls
for $350 million in state bonding. By the time this bond is paid off, the
taxpayer will pay an additional $250 million in interest, bringing the total
payment to $600 million. Of greater concern is the debt our
lawmakers are incurring to fund ongoing state operating expenses. In
1999, that figure was $554 million.
The carelessness of the excessive spending on
the hill in Hartford can be found in a recently released survey by Syracuse
University, which gave Connecticut a C-minus rating for government management.
The report stated that "Connecticut seems ambivalent about managing for
results."
Of course, that depends upon what results our
elected officials are looking for. If their goal is to enrich the lives
of friendly lawyers, architects, consultants and developers through a well
oiled corporate welfare system then their success is obvious.
Legal costs for the Adriaen's Landing deal have
grown to $813,061. The developers are asking for an unparalleled 15-year
tax break from the city of Hartford. The housing developer is
seeking a $12 million state subsidy.
The state's Office of Fiscal Analysis has warned
that the state government could be facing an $88 million general fund deficit
two fiscal years from now. The governor's budget director warned the General
Assembly in February that "as revenue growth slows down, difficult
spending choices are going to have to be made."
Can we rely upon our elected state
representatives to make intelligent and difficult spending choices? State
auditors have criticized elected officials for their failure to report between
$113.5 million and $127.5 million worth of unused real estate owned by the
state of Connecticut, saying in their report that "there are millions of
state dollars needlessly tied up in such property." An example: Seven
years ago, the state paid $14 million for property in Hartford and spent $5.5
million for improvements. This building has since sat empty. In March,
bids were sought by anyone willing to pay at least $4.5 million for the
building.
Speculation is the name of the game on the hill
where the legislature sits in Hartford. But when you are gambling with other
people's money, the stakes are not so personally high. As state reps come and
go, Connecticut taxpayers and their children will be paying the price of their
folly for years to come.
Susan Kniep
Vice President, Federation of
Connecticut Taxpayer Organizations
And former Mayor of East
Hartford