In early April, the small band of Republican legislators introduced a budget plan that boasted not raising taxes due to the current and projected budget surplus. The Democrats on the other hand introduced a "Perfect Budget Package" that increased the income tax for the wealthiest 5% of Connecticut's residents and provided tax cuts for the other 95%. The Democratic proposal even contained an earned income tax credit for Connecticut's most needy citizens. Nonetheless, no budget was adopted by the end of regular session at midnight of June 6.

When the dust settled during the first special session in the month of June, the final budget package agreed upon contained no progressive income tax and no earned income tax credit, and the legislature failed to cut gasoline taxes. The legislature even failed to cap the gross receipts tax for petroleum products. On the contrary, the price of gasoline is due to go up by a few cents beginning July 1.

The legislature was successful in several areas such as increasing Medicaid reimbursements for many healthcare providers, increasing statutory formula grants for all municipalities, and significantly increasing education spending. The budget was no longer a Democratic or Republican budget, but instead a compromise budget in which everyone got a little. However, every legislator was looking for a lot more.

This brings us to the second special session. With every budget comes the implementer bills that go along with it. These bills contain all the vital language needed to implement the allocations made in the budget. It was understood from the beginning that the Governor would not sign the budget until the final versions of the implementers were placed on her desk for review. Possible additions were "shopped around" every caucus to get their sign off before any particular proposal could be added. This process essentially killed most of the innovative ideas that might usually have been added in past years and kept the budget implementers exactly that - items that support the budget and nothing else!

Historically, so called "rats," or pieces of unrelated legislation, tended to make their way into these lengthy bills. Even now, the implementers are the compilation of 50 to 70 bills all rolled into one. This time around every caucus approved of the bills beforehand so very few surprises were found hiding between the lines.

To date, the bonding package and transportation implementer are still left on the table to negotiate. It is predicted that when the veto session convenes in July, legislators will also return to take action on these two remaining issues. There are millions of dollars on the table for each one of these proposals so you can bet that no one - state agencies, mayors, legislators, or lobbyists - will be relaxing until the final vote is taken. These proposals will allocate millions of dollars to towns to build bridges, roads, school expansions, and library additions. In addition, several "pet projects" for legislators and the Governor are included in the bond package creating a few more weeks of tense deliberations and last minute maneuvers by all to have language added or removed.

With a fiscally conservative governor and the watch dog "Fighting Forty-Four" (aka the House Republicans) at work, it will be interesting to see how many of the traditional "hometown" projects will get authorized this session. In any case, CT taxpayers should know they are certainly getting their value out of the CT part-time legislature this session!

Governor Rell issued her fifth veto this week. This time it was on HB 5656 AAC Access to Post Secondary Education, another controversial issue. This bill would have provided in-state tuition rates for illegal immigrants at state colleges and universities in Connecticut. Ten states already have such legislation including California, Texas, and New York.

Debate went on for around three hours in both the House and the Senate when this bill came up. Some legislators offered examples of people they know who were illegal immigrants when they entered the U.S. as children with their parents, but still succeeded here because they had access to a great education. Others pointed out the benefits of enrolling students who may otherwise drop out of school when they can't afford college tuition. "[These students] are Connecticut residents and are American in every way, except for the circumstances of their childhood. They should not have to suffer for a decision that their parents made very long ago," said Senate Majority Leader Martin Looney.

However, much of the debate surrounded the discrepancy created between state and Federal law if this bill was signed. The bill would require that students live in CT and be a graduate of an in- state high school. It would also require that students sign an affidavit stating that they would try to become a legal citizen. In her veto message, Governor Rell pointed out, "The requirement that students file an application to legalize their status would in essence be notification to the government that they're here illegally, and it would greatly increase the likelihood that they would be deported."

Senator Dan Debicella (R - Shelton), an opponent of the bill, also argued that the state's limited resources should go to legal residents. With 200 to 250 students being eligible for lower tuition this year under the bill, Debicella pointed out that that would cost the state $2 million in lost revenue.

The bill passed the House by a vote of 77-68 and passed the Senate by 21-15. None of the Republican legislators voted for the measure. Because of the close vote, it doesn't seem likely that the Democrats will be able to override the Governor's veto. "I understand these students are not responsible for their undocumented status, having come to the United States with their parents," Governor Rell said. "The fact remains, however, that these students and their parents are here illegally, and neither sympathy nor good intentions can ameliorate that fact." Looks like the fifth veto will stick, but Senator Looney has already vowed to revisit this issue next session.

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 signed the following special session bills:
HB 8001 AN ACT CONCERNING THE STATE BUDGET FOR THE BIENNIUM ENDING JUNE 30, 2009 AND MAKING APPROPRIATIONS THEREFOR

HB 8002 AN ACT IMPLEMENTING THE PROVISIONS OF THE BUDGET CONCERNING HUMAN SERVICES AND PUBLIC HEALTH

HB 8003 AN ACT IMPLEMENTING THE PROVISIONS OF THE BUDGET CONCERNING EDUCATION

The Governor signed the following regular session bills:
PA 07-131 (HB 7275) AN ACT CONCERNING THE FACE OF CONNECTICUT

PA 07-132 (SB 1184) AN ACT CONCERNING THE PRESIDENTIAL PREFERENCE PRIMARY

PA 07-141 (SB 167) AN ACT REVISING THE PROCESS FOR THE TAKING OF REAL PROPERTY BY MUNICIPALITIES FOR REDEVELOPMENT AND ECONOMIC DEVELOPMENT AND REVISING THE PROCESS FOR PROVIDING RELOCATION ASSISTANCE FOR OUTDOOR ADVERTISING STRUCTURES ACQUIRED BY THE COMMISSIONER OF TRANSPORTATION

PA 07-144 (HB 7043) AN ACT CONCERNING OFF- TRACK BETTING BRANCH FACILITIES AND BINGO PRIZES

PA 07-145 (HB 7138) AN ACT CONCERNING MANUFACTURER PERMITS FOR BREW PUBS

PA 07-146 (HB 7141) AN ACT CONCERNING UNIVERSITY BEER, WINE AND LIQUOR PERMITS

PA 07-149 (SB 1145) AN ACT CONCERNING REVISIONS TO OFFICE OF HEALTH CARE ACCESS STATUTES

PA 07-152 (HB 6209) AN ACT CONCERNING THE RENEWABLE ENERGY INVESTMENT FUND

PA 07-154 (HB 6856) AN ACT CONCERNING A MUNICIPAL STORMWATER AUTHORITY PILOT PROGRAM, SPECIAL SERVICES DISTRICTS, CLEAN WATER FUND DISBURSEMENTS AND THE DEFINITION OF UNIMPROVED LAND FOR TAX PURPOSES

PA 07-155 (HB 6893) AN ACT CONCERNING EXPANDED OUTREACH AND COMMUNICATION ACTIVITIES BY THE CHOICES HEALTH INSURANCE ASSISTANCE PROGRAM

PA 07-167 (SB 1400) AN ACT CONCERNING THE ADMINISTRATION OF THE DEPARTMENT OF MOTOR VEHICLES

PA 07-169 (SB 1047) AN ACT CONCERNING THE CONNECTICUT UNIFORM TRANSFERS TO MINORS ACT

PA 07-172 (HB 5179) AN ACT REQUIRING MARKETABLE TITLE BE PROVIDED FOR MOTOR VEHICLES SOLD AT AUCTION

The Governor vetoed the following bill:
PA 07-135 (HB 5656) AN ACT CONCERNING ACCESS TO POSTSECONDARY EDUCATION