By Kat Boushee

We’ve all heard the phrase “balance the budget” before, and usually by the end of an election we tune it out; it’s just one more tired political phrase. However, for the candidate that wins the election, the headache associated with the phrase has only just begun.

It seems like such a simple solution: just don’t spend more than you make. But when you look at where the money is going it becomes much more complicated. Governor Malloy has the unenviable task of trying to reconcile state spending with state income.

The Hartford Courant projects the budget gap at approximately $3.5 billion in the next fiscal year, so that task may be somewhat futile. Furthermore, with unemployment still an issue, it will be very difficult for the state to try to get more out of its tax base without hurting its citizens. However, Malloy has suggested some creative options.

One of his suggestions has been to maintain a higher hotel tax, which had previously been planned to be temporary. As the majority of hotel revenue comes from out-of-state, this burden would primarily fall on non-Connecticut residents. The Courant estimates that this could raise between $550 million and $600 million, which would represent a strong step in the right direction.

Some of his other suggestions, like allowing towns to locally adjust their own sales tax, present some problems. While it is likely that this would raise money for certain municipalities, it may also increase the gap between wealthy towns and cities like Bridgeport and New Haven. As Connecticut is already a state with a tremendous gap between the haves and the have-nots, this measure could be very counter-productive.

A better solution is to spend on projects that are sure to benefit the state. For example, Malloy has proposed borrowing $444 million to fund a number of capital building projects. While this is not a small price to pay, Malloy suggests that it could save or create 6600 jobs in the state. By providing so many people with jobs who would not otherwise have income, Malloy is improving his tax base, as many more people would have income, providing the state money through the income tax. They would then spend some of this income on goods and services, providing the state money through the sales tax. Some would even be buying higher-priced property, providing the state money through the property tax.

Governor Malloy faces a difficult job at a difficult time, but his plan seems sound, and his creative application of resources may yet put the state on the right track.