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CT House Dems’ Budget Taxes and Spends

August 23, 2017 By Staff
CT House Dems’ Budget Taxes and Spends

This latest Democrat budget still leaves Connecticut drowning in debt.

Today Connecticut’s House Democrats released their latest budget.

Democratic legislators have chosen to lead with tax increases, including surcharges on restaurant and hotel transactions and increasing the state sales tax increase from 6.35 to 6.85 percent:

House Speaker Joe Aresimowicz, a Democrat from Berlin, says an increase in the Connecticut sales tax from 6.35 percent to 6.85 percent is needed in order to balance the state’s two-year-budget. That budget is already seven weeks late.

The budget would also suspend an income tax cut for retired teachers and restrict the existing $200 property tax credit to only those households with dependents:

Restricting the existing $200 property tax credit within the income tax only to households with dependents would cost middle-class filers about $55 million per year.

The plan would have 25 school districts losing “anywhere from 2 to 88 percent” of Education Cost Sharing (ECS) program funding, a moderate improvement from Malloy’s plan:

The new House Democratic plan has 25 communities losing all ECS aid, and another 25 school districts losing anywhere from 2 to 88 percent of their ECS funding.

Also included would be a “comprehensive program to support homeowners with crumbling foundations in eastern Connecticut:”

The proposal includes a “comprehensive program to support homeowners with crumbling foundations in eastern Connecticut” and “cap on bonding to reduce long term debt.”

This is a notable nod to Malloy’s $5 million in state funding released earlier this year to address homeowners foundation quandary.

This latest Democrat budget still leaves Connecticut drowning in debt, with the state facing a grim “$3.5 billion deficit” over the next two years. Locked in with a 10-year labor agreement for state workers, Connecticut’s leaders face tough choices. Regardless, it seems Democratic leaders in the house are remaining hopeful and expecting a vote on their budget by early September.