Federation of Connecticut Taxpayer Organizations

HARTFORD � Tax hikes aren�t needed to close a $3 billion-plus deficit in the coming budget year, legislative Republicans said today in unveiling their response to Gov. Dannel P. Malloy�s budget.

�Our proposal achieves its objective by refocusing government on its core functions, eliminating waste and redundancy, and beginning the process of restructuring state government for the long term,� Senate Minority Leader John McKinney, R-Fairfield, said.

The proposal for the budget year that starts July 1 is unlikely to get much traction among lawmakers. Republicans hold just 52 of the 151 seats in the House of Representatives and 14 of 36 seats in the Senate.

Capitol insiders had predicted that Malloy, a Democrat, would need some Republican votes to pass his budget. But that speculation vanished last week when Malloy announced changes to his tax plan that would reinstate at $300 a popular property tax credit and would make income tax hikes more progressive.

The governor and majority Democrats on the tax-writing Finance, Revenue, and Bonding Committee reportedly are close to a deal on his tax package.

Still, Republicans said they have an �obligation� to show people how they would have done things.

Here�s what the Republicans� plan looks like:

* No tax increases, including restoring the property tax credit at $500 and keeping tax exemptions for things such as haircuts and car trade-ins.

* $1.2 billion in spending cuts above what Malloy has proposed, including $46 million through agency consolidations, which are likely along a plan Republicans proposed in January to merge 43 state agencies into 11.

* Eliminating longevity payments, the twice-yearly bonuses to employees with at least 10 years working for the state, to save $60 million over two years, and reducing the management ranks of state employees by 1,250.

* Stepping up Medicaid fraud detection, which they estimate will save $224 million.

* Paying down $200 million of the state�s highest-interest debt.

House Minority Leader Lawrence F. Cafero Jr., R-Norwalk, said he hopes residents will push for the Republicans� no-tax budget.

�Lawmakers now have a clear choice, and taxpayers have an opportunity to weigh in with their elected officials and tell them which road to travel down,� he said.

Malloy�s two-year, nearly $40 billion budget calls for spending increases of 2.4 percent each year. It relies on $1.5 billion in increased taxes in the next fiscal year and $1.3 billion in the second year. The budget also relies on $1 billion each year in concessions and other �savings� from state labor unions.

Malloy clashed with Republican lawmakers recently when Cafero contended the administration was ignoring Republicans� proposals. Malloy countered that he�d listen to any plan that fell within the framework of his proposal � no borrowing, no gimmicks, and a continuation of services for the poor and sick.

�If they come forward with spending cuts that are real, that do not shred the safety net, and that do not force the governor to compromise on his basic principles, of course he�ll take a look at them,� Malloy�s senior adviser, Roy Occhiogrosso, said last week. �They haven�t come forward with one of those yet.�