| Summer Break |
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Everyone notices the day-to-day fluctuations of gas
prices at their neighborhood station, but CT citizens
are downright feeling the pinch of the cumulative 80
cent spike in gas prices over the past few months.
Many are demanding relief, but as with many other
major issues of late, state officials cannot agree on
how to provide it.
According to AAA, the current average retail price of
gas nationwide is $3.10. For the same period, the
average gas price in CT is $3.18 per gallon.
CT has the seventh highest gas prices in the country.
Perhaps most notably, CT ranks third highest for
combined federal and state gas taxes behind
California and New York at more than 55 cents.
Governor Rell was the first to step up to offer
some
sort of plan to help ease taxpayers' shrinking wallets.
Last week, she urged passage of legislation that
would cap the state's gross receipts tax on
gasoline and other petroleum products when the
wholesale price hits $1.75 a gallon. "Connecticut
residents are fed up. They've had it with the soaring
costs of gasoline and rightfully so," Rell stated.
Further, she wants to roll back the next planned gross
receipts tax increase on July 1.
Soon after the Governor's announcement, the
Republicans held a press conference to unveil their
solution to the gas tax burden. Because there is
currently no bill in place to do so, Republicans
vowed to amend as many bills as possible in
order to suspend CT's 25-cents-per-gallon state gas
tax for a three month "holiday" of sorts. They would
aim to lift the tax from Memorial Day to Labor Day -
just in time for major summer travel.
Governor Rell applauded the Republicans'
idea and said it should be considered in budget
negotiations. Offering a break in the gas tax would
cost the state $120 million. With a surplus of $848
million, Republicans believe this plan is tangible and
do-able and would offer immediate assistance to
citizens.
A 25-cents-per-gallon reprieve? Sounds good to
many CT citizens, but Democrats are saying not so
fast. Speaker Amann said the
Republicans' plan is simply trying to "appease
with pennies". Amann and other Democrats
claim that temporarily repealing the gas tax would
not guarantee real savings would be passed
down to the consumer at the pump. Some worry
about the possible backlash when the break
ends at the end of the summer and gas prices
increase. Still others, such as Rep. Steve Fontana,
chair of the Energy Committee, have other ideas for
the $125 million including buying commuter rail cars.
Republicans counter that the Democratic majority
announced that they would pass comprehensive
energy legislation during the first 30 days of session.
To date, no such legislation has hit the floor of the
House or Senate - it is still being debated, negotiated
and revised. Whether a Democrat, Republican, or
independent though, everyone has come to the
realization that a simple one-size-fits-all solution
simply won't work in this circumstance. It will take
an enormous amount of attention to detail and a
realistic, long-term approach for CT to get a grip on
this expensive problem.
Even Attorney General Richard Blumenthal
threw his hat in the ring on this issue. He wants to
tackle the problem on a national level by
urging the federal government to be stricter with oil
industry mergers. He charges that that large oil
companies use their market power to control the flow
of oil and thus gas prices. However, the American
Petroleum Institute claims that high gas prices are
really a sign of consumer demand and the lack of
foreign imports.
If officials can't even get to the root of the problem,
how can actual gas price relief be realized? The
Whos, Whys, and Hows seem to be lost in translation
and citizens are simply left with the What: prices that
seem to increase without limit. According to AAA, CT
citizens will already be traveling closer to home and
staying in cheaper hotels to compensate for gas
prices, but with rumors that prices could hit $4 a
gallon this summer, the breaking point could be near.
With so many various solutions floating around,
legislators have a very short period of time to find a
way to help to public. "This is at least an attempt to let
the citizens out there know that at least someone is
listening," said Senator Minority Leader Lou DeLuca of
the Republican plan.
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| Showdown |
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Since the November 2007 elections, the Democrats'
supermajority issue has been a shadow looming over
every action taken at the Capitol. It looks as if in the
next couple of days, folks will finally get a chance to
see if the much talked about veto override will
actually happen. On Wednesday, Governor Rell vetoed
HB 7065, which would have required the
General Assembly's Human Services and
Appropriations Committees to give their consent on
any waiver before being submitted by the
Commissioner of Social Services to the federal
government. The bill also sets up a process where if
the two committees disagree on what action to take,
they can resolve their differences. In the past, no
action was deemed approval. It also requires the
Commissioner of Social Services to attach any
legislative history to all applications for federal
waivers.
Connecticut has not seen an override on a
gubernatorial veto since 1994 when Lowell
Weicker was sitting Governor and the legislature
overrode a law lifting the ban on the sale and use of
radar detectors in CT. This time around, the bill in
question passed both chambers with a veto proof
margin, but now it comes down to a battle between
the Governor's office and the members of the House
and Senate to count votes. While the Democrats have
the numbers, the question on everyone's minds is:
Is this the bill they want to go to battle over?
Yesterday, the House whips were actively
counting heads to see where legislators stood on the
question of an override.
Intrigue has filled the halls of the General Assembly,
especially within the Republican caucus walls.
Members of the minority party lack the ability to pass
or defeat a bill on their own. However, with the
Governor's veto powers and careful counting of
Democratic heads, the mere possibility of
retaining some influence over public policy is
in reach. The opportunity to achieve this goal is
causing both sides of the aisle to scramble. For
Republicans, it's a scramble to maintain an active role
in the game, and for Democrats, it's a rush to
maintain control for the remaining 18 months until the
next legislative elections.
The override of HB 7065 started out as a public policy
issue, but now it could turn into a rally call for
either political side. Should the Democrats attempt the
override and fall short, the magic numbers of 107 in
the House and 24 in the Senate will no longer be king.
Every issue will have to earn its votes not only the first
time around, but then a second time in the case of the
Governor's veto. The ability to predict what bills are
targets of a veto will be even more critical.
Ironically, in 2005 a similar bill to HB 7065 was
passed and vetoed, but the Democratically-lead
chambers did not have the numbers to override. We
will see if history repeats itself soon enough.
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| Newly passed legislation |
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According to the joint rules of the legislature, after a
bill
is passed by both the House and Senate during
session, the Governor has 5 calendar days, exclusive
of Sundays and holidays, from when a bill is
presented to sign or veto the bill. After session has
adjourned, the bill becomes a law unless the
Governor vetoes the bill within 15 calendar days after
presentment. It takes at least 2/3 of the members of
each house to override the Governor's veto. The
Democrats currently have the numbers to do so in
both chambers.
As the House and Senate pass bills, S&L will
continue
to post the bills that are of interest to our clients that
have been signed into law and become public acts
(PA) or special acts (SA), or vetoed, by Governor Rell.
For a list of bills passed, but not yet acted upon by the
Governor, please click the link below.
The Governor vetoed the following bill:
HB 7065 AN ACT CONCERNING LEGISLATIVE
REVIEW AND APPROVAL OF WAIVER APPLICATIONS
PRIOR SUBMITTED BY THE COMMISSIONER OF
SOCIAL SERVICES TO THE FEDERAL GOVERNMENT
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State Representative Tom Kehoe |
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While State Representative Tom Kehoe may
hail from Connecticut, his professional experience
has spread far beyond CT's boundaries. Kehoe was
general counsel for Electric Boat, counsel for Europe,
the Middle East and Africa for a former group of
Combustion Engineering based in London, and he
has even worked with a firm on Wall Street! "I bring
good perspective [to the legislature] with my town
council experience and my career in business,"
Kehoe said.
Kehoe represents the 31st assembly district of
Glastonbury. Kehoe is a member of the Executive
and Legislative Nominations, Energy, and Finance
Committees. He said the main focus in the Energy
Committee is creating and identifying more
opportunities for the state to be more energy
efficient. Kehoe said the committee has been
citing the statistic that every $1 spent on efficiency
creates $4 in savings in the future. With such a heavy
demand on fossil fuels and electricity, he explained
that now is the time to act to reduce the demand on
those energy sources.
Kehoe also feels that he's a good match for the
Finance Committee: "[With my background in
business], I'm used to having a budget and dealing
with finance matters." He thinks the legislature needs
to take a realistic look at what CT can afford to
spend within its means when drafting the new
budget. He continued that essentially, the legislature
must balance the concern about raising taxes against
the rising demand for state services.
Governor Rell's property tax cap proposal also strikes
an interest for Kehoe. He stated that coming from a
town council, he knows firsthand that most town
councils will not find a property tax cap to be a useful
tool. "Most local governments are already the most
cautious with taxpayer money," Kehoe said. He thinks
the cap would just make things more difficult for
town officials and that a better approach would be
to properly fund all state responsibilities.
Outside of his committees, the smart growth
initiative is also an important proposal for Kehoe.
He calls it a "holistic approach to what CT could look
like when fighting urban sprawl and addressing traffic
congestion." It seems that Kehoe has relied on his
professional experience to contribute to conversations
on major issues at the Capitol, while learning about
new interests and making his mark on Connecticut.
Kehoe said the best way to end his first session
would be if everyone can reach a consensus on
the budget. With little more than twelve
working days remaining, you can bet that many of
Kehoe's colleagues are also hoping for agreement on
the big issues of the 2007 Session.
Kehoe
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