“‘Allowing the temporary tax increases to sunset will mean the state will have no option but to continue the trend of cutting spending on core services,’ said Amanda Kass, CTBA's Budget Director and Pension Specialist. ‘Since $9 out of every $10 spent on current services through the General Fund goes to education, healthcare, human services, and public safety, spending cuts necessitated by the loss of revenue would have to be made to one or more of those core services.’
- All net General Fund revenue growth over the FY2011-FY2014 sequence was used to reduce the accumulation of back due bills in the state's General Fund by $4.7 billion while covering the $2.7 billion growth in non-discretionary hard costs.
- The phase out of the temporary tax increases are scheduled to begin midway through FY2015 which will result in the General Fund losing a total of $2 billion in revenue from FY2014 levels.
- The accumulated General Fund deficit is currently $6.8 billion. Without dramatic spending cuts to current services, the $2 billion in lost revenue from the phase out of the temporary tax increases would balloon the accumulated deficit to $8.8 billion or 36 percent of all spending on current services in FY2014.
- If the temporary tax increases phase down as scheduled, overall spending on services in FY2015 will be cut by $1.5 billion from FY2014 levels. Nearly every major service category of the budget will be cut significantly from FY2014 levels with public safety cut by 18.6 percent, human services cut by 12.5 percent, higher education cut by 12.4 percent, K-12 education cut by 9.6 percent, and early education cut by 6 percent.
- When considered over the long term, under both the Recommended and Doomsday Budgets, spending on services is declining in real, inflation-adjusted terms. After accounting for inflation, spending on services in FY2015 under the Recommended Budget would be 23.4 percent less than FY2000. Under the Doomsday Budget, spending on services in FY2015 would be 33.2 less than in FY2000 in real, inflation-adjusted dollars…”