May 5, 2010

DEMOCRATS, GOVERNOR REACH BIPARTISAN BUDGET AGREEMENT
Budget balanced on time with no tax increases

State Representative Hector Robles (D-Hartford) along with fellow legislative Democrats announced a bipartisan agreement with Governor M. Jodi Rell that balances the state budget through fiscal year 2011 with no tax increases, no cuts in municipal aid and a decrease for most residents' electric bills by an average of $60 a year.

The plan, which was approved by the General Assembly prior to the constitutional adjournment date of May 5, includes $170 million in spending cuts across a host of state agencies and a reduction of $300 million from a previous borrowing plan. There is also hundreds of millions of dollars in savings from a shorter term and lower interest rate on the issuance of $956 million in Economic Recovery Bonds (ERBs).

"As we face this tough economic crisis, it is comforting to see that we were able to reach an important budget agreement with the governor," Robles said. "While we may not all agree with every single item on this package, we have to agree that this deal represents a great effort by Democrats and Governor Rell to move the state forward."

The ERBs have an eight year term at a low interest rate of 3% and will be paid off using a small portion (one third) of two current charges on electric bills. As part of the budget, customers will see one of the charges reduced by over 60%. The net result for most electric customers will be a savings of about $5 per month. As the economy continues to recover and revenues grow, the ERBs can be paid off earlier.

In addition, as an alternative to entering a much more expensive nursing home setting, seniors will see up to a $300 per month cost reduction for certain home care services that saves taxpayers millions of dollars over the long term. AARP has endorsed the home care program.

Representative Robles is serving his first term representing Hartford's 6th Assembly District. He is a member of the Executive and Legislative Nominations, the Finance, Revenue and Bonding, General Law and the Public Safety and Security Committees.