Seven working days left in session - one big question still remains: what will become of the budget? This week, the four Democratic leaders in the House and Senate took a shot at answering that question. Senate President Don Williams summed up their message: "A common sense approach [to the budget] is nothing new. It's time to deliver relief at the state level."

Williams, Senate Majority Leader Martin Looney, Speaker Jim Amann, and House Majority Leader Chris Donovan all agreed that the cornerstone of the budget was the implementation of a more progressive income tax. They claim that by doing this, the tax package will offer tax relief to 95% of Connecticut's citizens, while only the wealthiest 5% will have to pay more in their income tax. "We're funding fairness for our working families. We don't want to reward the highest tax bracket," explained Williams.

Amann stated that the Democrats' tax package aims to help families that are on the brink of becoming the "permanent underclass". Further, Amann said that the middle class in CT is also just barely keeping up with rising costs. "We're going to fight for what we think is right," he said, "It's about balance."

Looney explained that 20 states already offer an Earned Income Tax Credit (EITC) to assist their citizens, another piece of the Democratic proposal. "It is not a giveaway or a windfall. It recognizes the hard work of the lower class," he said. He also supports a progressive income tax. Looney cited that the average income in Hartford is less than the average income tax paid in Greenwich. "A slight increase [in the income tax] won't drive people out of the state," Looney maintained. Donovan agreed saying that the EITC and the progressive income tax system will save families much more than other relief proposals such as the Republicans' proposed gas tax holiday.

So the Dems are sticking to their guns with their vision for the budget, but where does that put them in the process? The leaders said they've held 5 or 6 meetings on the budget already, one with full leadership from all caucuses. Amann said he felt encouraged by the response so far from OPM and the Republicans. When asked what the Dems would use as bargaining chips in budget negotiations, Williams retorted that it wouldn't make a lot of sense to discuss what the Dems would be willing to give up! He would say that the Governor set the bar very high with her version of the budget and that it would take significant funding to follow through with new initiatives while keeping the current commitments of the state.

The Governor's recent comments have continued to warn the Democrats that 10% spending limits and a progressive increase in the income tax while the state is experiencing a huge surplus are not in her budget plans. As you might recall, the Governor needs to sign a declaration if the budget is to exceed the constitutional spending cap (which in anybody's version it certainly will). With the ever increasing surplus, the Governor has backed off an income tax increase and the Republicans are looking for a conservative spending increase for property tax relief and education.

Rumor has it there's going to another show down at the O.K. Corral over the progressive income tax proposal. We will know for certain on Tuesday when House D's are scheduled for a caucus to discuss the budget situation. Even with 7 days left, there are still a lot of hours and minutes during which a deal could still be made if one or both parties are willing to meet in the middle... if there is middle.

As expected, the Democratic Majorities in the House and Senate Chamber overrode Governor Rell's veto of the DSS Medicaid Waiver Bill. In what was touted as a great victory for the Democrats this session, the Republicans saw it as the rallying call to step up their use of the process to slow down legislation unless they are allowed an opportunity to be heard.

Last week, Republican leadership announced a bold plan to suspend the gas tax from Memorial Day to Labor Day. The 25 cent decrease was proposed as a means to take the sting out of gas prices that seem to be rising on a daily basis here in Connecticut. The so- called "gas holiday" instantly became a contentious issue and was bashed by the Democrats as being nothing more than a gimmick. Republicans vowed to amend every bill before the House and Senate that had the faintest link of being germane.

On Wednesday, May 23, the Republicans came through on their promise. A day after the historic gubernatorial veto, the Republicans introduced their first amendment to a somewhat related bill, SB 429, which essentially killed the bill for the time being. This is because Speaker Amann has vowed to never have a vote on this issue as it is "not worthy of tying up valuable floor debate time." Nonetheless, Minority Leader Larry Cafero has vowed to introduce the amendment as many times as it takes to initiate a debate and vote on this issue.

The effects are already being felt by this determined move. Target vehicles pertain to transportation, fuel, or the state's tax system. All bills that contain these issues are on the hot list and are sure to suffer the same fate as SB 429, which was immediately PT'ed (debate stopped and the bill was passed over to move onto another topic) when the amendment was offered. Nothing is safe from a potential amendment, even the major transportation bonding bill, the tax package, the final energy bill, and the budget. Essentially these bills are being held hostage until a debate and roll call vote is taken on the Republican initiative. Some around the Capitol are beginning to say, "Just give the people their 25 cents and let's move on!"

The effect of this maneuver will surface in the upcoming week. As leaders try to get the major work done before the June 6 deadlines, most are predicting that either a vote will need to occur on the "gas holiday" amendment in order for the Democrats to pass a budget and tax package this session, or folks are looking at a special session. Even with a special session, the budget and tax package are germane vehicles and avoiding a vote on the gas holiday looks doubtful. If this vote finally occurs, all bills held "hostage" by the threat of an amendment will flood the House and Senate agendas. Timing will be critical and the prioritization of these captive bills will make the difference on the fate of many other bills that are hanging on the calendar.

The last week of session is measured in hours and minutes - anything can happen and anything can not. It's just a matter of time and strategy!

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.

PA 07-23 (HB 7156) AN ACT CONCERNING HOSPICE SERVICES

PA 07-25 (SB 249) AN ACT CONCERNING MEDICAL MALPRACTICE DATA REGARDING MEDICAL PROFESSIONALS

PA 07-26 (SB 618) AN ACT CONCERNING DEMOLITION OF BUILDINGS

PA 07-28 (SB 1103) AN ACT CONCERNING NONFORFEITURE BENEFIT REQUIREMENTS WITH RESPECT TO LONG-TERM CARE POLICIES

PA 07-31 (SB 1378) AN ACT CONCERNING THE WORKERS' COMPENSATION MEDICAL PRACTITIONERS' FEE SCHEDULE AND TIME FOR FILING A WORKERS' COMPENSATION APPEAL

PA 07-33 (HB 6997) AN ACT CONCERNING THE SUNSET LAW

PA 07-34 (HB 7157) AN ACT CONCERNING STAFF TRAINING REQUIREMENTS FOR ALZHEIMER'S SPECIAL CARE UNITS AND PROGRAMS

PA 07-35 (SB 140) AN ACT CONCERNING MASSAGE THERAPY

PA 07-39 (SB 1204) AN ACT CONCERNING ALCOHOL SHIPPING PERMITS

PA 07-41 (SB 878) AN ACT CONCERNING ALCOHOL SERVER AND SELLER TRAINING

PA 07-45 (SB 1358) AN ACT CONCERNING FEDERAL ENVIRONMENTAL STANDARDS AND PROCEDURES

PA 07-48 (HB 5259) AN ACT CONCERNING REFUNDS OF PREPAID PREMIUMS MADE BY SENIOR CITIZENS TO HEALTH INSURANCE PROVIDERS FOR MEDICARE SUPPLEMENT POLICIES

PA 07-49 (HB 5508) AN ACT AUTHORIZING COMMITMENT TO A CHRONIC DISEASE HOSPITAL UNDER A PHYSICIAN'S EMERGENCY CERTIFICATE

PA 07-50 (HB 5722) AN ACT CONCERNING REIMBURSEMENT OF MARSHAL COSTS WHERE THERE IS AN ERROR BY THE TAX ASSESSOR OR TAX COLLECTOR

PA 07-51 (HB 5728) AN ACT CONCERNING BONDS OF MUNICIPAL WATER POLLUTION CONTROL AUTHORITIES

PA 07-53 (HB 6840) AN ACT CONCERNING SCREENING FOR KIDNEY DISEASE

PA 07-54 (HB 6982) AN ACT MAKING MINOR AND TECHNICAL CHANGES TO THE INSURANCE STATUTES

PA 07-56 (HB 7024) AN ACT CREATING AN INTRASTATE MUTUAL AID SYSTEM