State House learns details of budget plan

Published on Thursday, 19 October 2017 21:35
Written by The state’s largest teacher union, the Connecticut Education Association, opposes the proposal, calling it tax increase.

HARTFORD (AP) - Rank-and file Connecticut lawmakers were given their first glimpse Thursday of a tentative, bipartisan budget framework that includes proposals to increase the state’s cigarette tax and eventually eliminate local motor vehicle taxes.

Closed-door briefings on key points of the plan were held with Democratic and Republican members of the House of Representatives and more meetings are planned next week after staff members spend the weekend compiling the draft tax-and-spending package. Rank-and-file senators are scheduled to be updated on Monday.

There was both optimism and skepticism Thursday about whether this tentative agreement will finally end the state’s budget impasse. Connecticut has been without a budget since June 30 as lawmakers have grappled with how to cover a projected $3.5 billion deficit in a two-year, approximately $40 billion budget. Democratic Gov. Dannel P. Malloy has been running the state using his limited executive authority, which has meant deep cuts to state education grants and social service programs, as well as uncertainty among municipal leaders about how much aid to expect.

“I’m looking forward to a vote next week that will pass by an overwhelming margin in both chambers, move on to the governor, garner the governor’s signature and we can put the longest budget crisis in Connecticut budget history behind us and we can continue working together to make this state a better place,” said House Speaker Joe Aresimowicz, a Democrat from Berlin.

Aresimowicz added how he’s “very comfortable” there will be enough votes among House Democrats to pass the budget, with the expectation of Republican support.

Lawmakers and staff confirmed the following highlights of proposal, stressing they could still change.

 Property taxes on vehicles: The state would continue capping the tax rate that cities and towns can charge on vehicles in local property taxes in the first year of the two-year budget and then entirely scrap the tax in the second year. Lawmakers have not yet decided how to make up the lost revenue to cities and towns, but stressed they would be somehow compensated.

Betsy Gara, executive director of the Connecticut Council of Small Towns, said her organization worries the proposal “will simply shift more of the property tax burden to homeowners and businesses.”

 Taxes: Connecticut’s cigarette tax would increase by 45 cents in the first year, to a total of $4.35 a pack. Currently, the budget package does not include higher income taxes or sales taxes. As it stands, the plan would limit the state’s $200 property tax credit against the personal income tax to only seniors and people with dependent children.

 Teacher pension: The blueprint does not shift the cost of funding the state teacher pension plan to cities and towns, as proposed by Malloy. However, it requires teachers to contribute 1 percent more of their income to the fund starting in January 2018. They currently pay 6 percent. The compromise maintains a 25 percent personal income tax exemption for teacher retirement pay.



Posted in New Britain Herald, State on Thursday, 19 October 2017 21:35. Updated: Thursday, 19 October 2017 21:37.