Yesterday’s flurry, or should be say slurry, of activity in the Capitol would, on its face, indicates that majority Democrats and the Republican governor are far apart on their budget proposals. In fact, they’ve never been closer and it bodes well for an eventual deal sometime in August. Unfortunately, things are very reminiscent of 2003, when Democrats tried to raise tax rates on the wealthy, but the Republican governor, John “Why Should I Resign If I’ve Done Nothing Wrong?” Rowland successfullyvetoed it and the result was that income taxes on everyone rose from the former 4.5 percent to the current 5 percent.
Today, Dems want to raise taxes $1.8 billion over the biennium. Rell has proposed just shy of $400 million. Add them up to $2.2 billion, split the differenet and we have just over a billion in new taxes. That’s the way the Blogster sees it coming down. Fortunately the gun to everyone’s head is the September 1 deadline where Comptroller Nancy Wyman will certify the deficit in the fiscal year that ended June 30. Without a new budget in place, the $1.4-billion rainy day fund will be used to clear the books. Both the governor and Democrats have agreed to borrow and bond the $900-million deficit. The state can’t borrow to fund ongoing expenses.