"The spending cap includes a provision not to include evidence of indebtedness."
State Sen. Beth Bye
Democratic leaders of the state legislature's Appropriations Committee unveiled their two-year budget Monday.
The budget writing committee restored many of the proposed cuts in Governor Dannel Malloy's budget proposal, including mental health programs and services for people with intellectual disabilities. The plan also ensures that parents and pregnant women would not lose Medicaid eligibility.
The spending plan also replenishes much of the funding Malloy's budget cut from libraries, regional tourism districts, before- and after-school care programs, state parks, and other popular initiatives.
But the plan hinges on a controversial interpretation of the state's constitutional spending cap.
"The spending cap includes a provision not to include evidence of indebtedness," said Democratic State Senator Beth Bye, co-chair of the Appropriations Committee. "It's our interpretation on this committee, and with this budget, that the long-term obligations of the teacher retirement, the jurors retirement, and other post employment benefits represent long term indebtedness, and that should not be counted."
State contributions to worker pension plans have never been exempt from the spending cap. If the new interpretation is approved, the Democrats' budget would be a comfortable $1.5 billion below the spending cap.
The Appropriations Committee voted 33 to 24 on Monday in favor of an alternative two-year, $40.5 billion spending plan.
