Proposed Hospital Tax Raises Hackles

For the first time, Gov. Dannel P. Malloy openly criticized former Republican Gov. M. Jodi Rell not taking ownership of the budget that resulted in the state’s current fiscal crisis.

“Rell signed the budget into law,” said Malloy, wearing his trademark green tie, during the latest session of his budget barnstorming tour of the state, held Monday night at Eastern Middle School in the Riverside section of Greenwich.

With only six hall meetings left to go on his 17-city and town budget barnstorming tour, Malloy took Rell to task for signing off on a budget and then blaming the Democratic majority in the statehouse. Facing a $3.5 billion budget shortfall, Malloy has proposed a budget that includes higher sales and income taxes, $1 billion in state employee concessions, and hospital tax.

After making an entrance to the strains of “Yankee Doodle Dandy,” as played by 88-year-old pianist Penny Howe, Malloy took the podium. He faced a standing-room only crowd inside Riverside’s Eastern Middle School auditorium with Lt. Gov. Nancy Wyman taking control of the microphone reserved for public comment.

“We understood there were no easy answers,” Malloy said, adding that his mix of cuts and tax increases allows him to “honor our vow to maintain our safety net.”

Not so, said scores of Greenwich Hospital employees who occupied more than one-third of the seats. Indeed, hospital employees and supporters dominated the microphone when it came time to question the governor.

 “What should I tell my patient when they ask why they have reduced access to procedures? That despite their illness they have a duty for shared sacrifice,” said Dr. Dickerman Hollister, head of oncology at Greenwich Hospital.

Malloy’s proposed 5.5 percent tax on hospitals, coupled with an $83 million cut in uncompensated care funding means Greenwich Hospital stands to lose at least $10 million. Like scores of hospitals across the state, the hospital said it would have to lay off employees and cut services.

“I’ll trade a $3.5 billion deficit for a $10 million loss any day,” Malloy said.

A chorus of boos filled the 581-seat auditorium after Malloy’s remark, which some hospital employees said has become a stock answer.

However, Malloy repeatedly said he would consider Greenwich Hospital’s situation.

Some speakers asked Malloy why he couldn’t craft a budget more like that of New York’s Democrat Gov. Andrew Cuomo.

“Governor Cuomo has an overall $10.5 billion shortfall. You inherited a $3.5 billion gap. Governor Cuomo says he’ll reduce that and there will be no new taxes,” said Hal Rogers of Riverside. “I don’t understand the equation.”

For one, New York has a higher income tax at 8.5 percent, Malloy said. Second, the state benefited from Wall Street’s recovery more than Connecticut. Third, New York’s schools will suffer under the budget with a cut of $675 million in support, Malloy said.

According to Malloy, a Greenwich household earning an average $126,278 would pay an additional $601 annually in taxes, or $11.50 a week, or $1.65 a day.

“Here, I’m criticized for taxing too much, in other parts of the state I’m being asked to tax you guys more,” Malloy said. “So there’s enough things in this budget for everyone to hate.”

State Rep. Fred Camillo, (R-151) agreed about not liking parts of the budget.

“There is a lot in this budget I truly hate and will vote against,” Camillo said, also attired in a green tie. “You have shown great leadership and a lot of courage to face the music. But the hospital tax does touch the safety net. It’s a tax on health care.”

Aside from Camillo, local state Representatives Lile Gibbons (R-150) attended as did state Sen. L. Scott Frantz (R-36). State Rep. Tony Hwang (R-124) of Fairfield.

 “You asked what would the affect of your budget be on our town. It would do great harm to my town if your tax increases are implemented. After spending 11 years in the state house, I think the budget tsars rely too much on taxes,” Gibbons told Malloy.

Various other Greenwich officials also attended the event, including former Greenwich GOP party leader John Raben and former Republican First Selectman Tom Ragland and Republican Second Selectman Peter Crumbine, Democrat former First Selectman Dick Bergstresser and Selectman Lin Lavery, as well as several members for the Representative Town Meeting, including Democrat John Blankley.

Malloy, who was introduced by Republican First Selectman Peter Tesei, said his budget includes no new base spending; no borrowing to cover operating expenses, and fully funds the pension budget to the tune of $877 million.

“We’re trying to reset the clock,” Malloy said. “Not because we want to punish anybody, but because we want to live within our means.”

Local editor Barbara Heins contributed to this report.