Editorial: Kick The Can

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Earlier this week, Gov. Dannel P. Malloy did something that should please all of us… he called for bipartisan negotiations to cut spending, stabilize our state finances and discuss the larger question of how much government we can actually afford. It is no secret our state’s budget is in very poor fiscal health. It’s a can that has been kicked down the road far too long. The reason for the negotiation is because there is an estimated $120 million shortfall in the state budget. Just last month the Gov. Malloy announced $102 million in emergency budget cuts. Perhaps now is the time to truly have a bipartisan discussion about the budget that fully addresses our state’s financial reality. We hope that is the case, but we have our reservations.

In making his surprise announcement, the Governor said, “I am calling their bluff,” referring to opponents of his current budget both within his own party and the Republican Party. That does not sound like someone who is eager to sit down with the leadership of both parties and seek bipartisan solutions.

We have not written about the state budget before on our Editorial Page. Why are we doing so now? Our state fiscal woes have become so significant that they are now affecting Greenwich in ways big and small, seen and unseen. Last month in his emergency budget cuts, the Governor eliminated $63 million in Medicaid reimbursements to the state’s hospitals, including Greenwich Hospital. That does not seem outrageous at first glance-but the Federal Government matches the reimbursements 2 for 1, so the hospitals are actually losing $192 million. Hospitals will not be able to maintain the same level of services with such extensive cuts.

The new budget shortfall announced is $120 million. What cuts are going to be needed to close this hole? What non-profits that rely on state funding as part of their operations are going to be affected? We’re not trying to be fear mongers, but it is getting a little scary out there. And it’s affecting Greenwich people.

The U.S. Census Bureau recently estimated that 82,000 people moved into Connecticut in 2014—but that more than 96,000 moved out. That is not good. That means 14,000 residents left our state to move to another. Where did they go? New York, Massachusetts and, of course, Florida. No longer do we need to anecdotally say that folks are moving from Greenwich to Florida, now we have facts. The number who left last year may not seem like many. Statistically, it’s less than half of one percent. However, it is one of the 10 highest rates in the country.

We want the exodus from Greenwich, and our state, to stop. These individuals, families and businesses give back to our community. They support our non-profits. They bring vibrancy and diversity to our town. The reason Greenwich is Greenwich is because of its citizens. When we start losing them to other states, including Florida, our community changes. And our state suffers because Greenwich residents, on average, pay far more into the state coffers through inheritance taxes, capital gains taxes and other taxes than others in the state. If the state is making living here unattractive they are compounding their own budget problems by giving those taxes to another state.

So yes, we are pleased the Governor is calling for bipartisan discussions. It is time to get our financial house in order. We hope this is done in a transparent manner so we can see how the process unfolds. We also hope the Governor and his team come to the table without being defensive or divisive. This is an opportunity for all to show leadership and demonstrate the art of compromise. That is what is best for Greenwich and our state. No need to kick the can down the road any farther.

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