STATE MAY BE BROKE NOW

Forget about Connecticut's projected $6B deficit over the next two
years. The question is whether the Nutmeg State is broke now. Today's
Republican American quotes State Treasurer Denise L. Nappier as saying
she wants a decision today, by the state Supreme Court.
At issue is Sen. Joe Markley's suit against the state about its
hidden tax on our electric bills. A surcharge on our bills,to help
CL&P and United Illuminating make infrastructure improvements,
was set to expire Dec. 31, 2010. In May of last year, against the
unanimous objection of Republicans, the Democrats voted to balance
the state budget, by allowing the surcharge to remain a part of our
electric bills. The money would go into the general fund to help
balance the budget.
That is when Markley, a Southington Republican, stepped in. He
sued on several fronts. For openers, he claimed the Department of
Utility Controls, which oversees the utility companies, is not a taxing
authority. He also said this was an inequitable tax, because not all
electric customers receive their electricity from CL&P or UI.
A superior court tossed Markley's case, claiming he had not exhausted
all possibilities with lawmakers. Undaunted, Markley appealed, but
before an appellate court could step in, the state Supreme Court took
up the case, because the state is running out of money. Connecticut
intends to rake in $646.6M from the hidden tax and the treasurer needs
to borrow money against that figure now, to keep state government in
business. That is why she is asking for a decision today. If the court
rules in favor of Markley, the state - which currently projects a minor
surplus for the current fiscal year - will be drowning in red ink now.
According to the newspaper story, the governor's office is not
revealing any contingency plans in the event of a court defeat, but the
bottom line is Connecticut, already facing a dire fiscal crisis, will
find calamity at its doorstep, instead of the front yard.