HARTFORD, Conn. -- Governor M. Jodi Rell today asked legislative leaders to expand next Wednesday 's special session of the Connecticut General Assembly to include postponing the planned increase in the gasoline tax scheduled for July 1, saying the move will provide some measure of relief to the state 's beleaguered motorists.
"With gasoline prices at unprecedented—and frankly insufferable—levels, we must take action," Rell said. "I cannot control the price of crude oil. I cannot control OPEC. I cannot force the President or Congress to take action—though I have repeatedly [image-nocss] urged them to do so. The one thing I can do—with the Legislature 's help—is to postpone the increase in the Gross Receipts Tax."
She added, "Food and energy prices these days are outrageous. And the effects go beyond the sticker shock we all feel when we pull up to the pump. Our state 's business climate depends heavily on our ability to move people and goods. Our state also counts on a robust tourism industry to bring people to its many attractions. We simply cannot afford to put the brakes on our own economy when it is already slowing down."
Rell told legislative leaders that as worried as she is about the effects gasoline prices are having on Connecticut families right now, she is even more concerned about the price of home heating this winter. "We have always had concerns about seniors and others on fixed incomes," Governor Rell said. "But with heating oil expected to cost as much as $4 or $4.50 a gallon, I believe even middle-class Connecticut residents will face excruciatingly difficult choices this winter—choices between filling their oil tanks and filling their grocery carts."
The governor said she has already ordered the Office of Policy & Management and the Department of Social Services to begin working together to develop and expand winter energy programs. She is also planning the creation of a special fund to help homeowners who are unable to keep up with the staggering increases in heating oil costs.
Last month the Office of Policy & Management advised Rell that the next fiscal year, which begins July 1, was projected to face a shortfall of about $150 million. Postponing the Gross Receipts Tax increase would add about $25 million to that deficit. Rell told legislative leaders that rescissions and other cost-cutting moves she is planning will likely reduce much of that shortfall, but will not eliminate it all. "I therefore need your help to find the remaining savings necessary to keep the state out of deficit and postpone the scheduled increase in the Gross Receipts Tax. I am confident you will work with me to achieve these savings in the coming weeks and months and provide some measure of relief to the hard-pressed taxpayers of our state," she said.
Earlier this week, Connecticut Attorney General Richard Blumenthal, in a letter to legislative leaders, called for legislative action on his gasoline and heating oil initiatives. In a letter to Senate President Pro Tempore Donald Williams and Speaker of the House James Amann, Blumenthal said immediate action on his gasoline and home heating proposals, is imperative because of Connecticut's high gasoline prices.Blumenthal's legislation, developed in coordination with and supported by State Rep. Christopher Stone (D), industry representatives and others, would authorize comprehensive analysis of gasoline markets by state authorities; ban gasoline franchisors from prohibiting franchises offering cash discounts; clarify the law to protect hundreds of consumers who lost their prepaid heating oil deposits in the F&S Oil debacle; and provide consumers with written contracts for heating oil or propane deliveries where additional charges are assessed by the company.Blumenthal has also advocated federal action to:
Order an aggressive, comprehensive federal investigation, in partnership with the states to determine whether and how oil companies have misused monopolistic power—much as federal and state antitrust enforcers combined and cooperated in a similar investigation regarding Microsoft. Enact a one-year moratorium on oil industry mergers. Prohibit any oil company merger in a highly concentrated market unless the Federal Trade Commission (FTC) specifically finds consumers benefit from the merger. Increase federal regulation and oversight of the gasoline futures markets to end speculation that increases gasoline prices. Stop adding to the Strategic Petroleum Reserve (SPR) while gasoline prices stay high. Ban zone pricing and other mechanisms that prevent gasoline retailers from obtaining gasoline at the best price. Expand refinery capacity and mandate minimum levels of inventory of a significant source of energy. Lessen our dependency on gasoline through conservation efforts and alternative fuels.Georgia Governor Sonny Perdue on Tuesday signed an executive order suspending a scheduled increase in Georgia's gasoline taxes that would have taken effect on July 1. (Click here to view CSP Daily News coverage.)
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