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CT Leaders Pan Malloy’s Budget Proposal; “Irresponsible,” Could Force Local Tax Hikes

February 6, 2018 By Staff
CT Leaders Pan Malloy’s Budget Proposal; “Irresponsible,” Could Force Local Tax Hikes

Reactions to the governor's budget are coming in from across the state. It's not a good start for what are likely Malloy's last budget negotiations.

Reactions to the latest budget proposal from Gov. Dan Malloy (D-Conn.) are pouring in, and they’re not good.

Malloy introduced a fiscal year (FY) 2019 budget on Monday that would raiase spending $70 million over what was appropriated last year, include around $215 million in new tax hikes, fee increases, and ends to certain tax credits and exemptions, and cut Education Cost Sharing (ECS) grants to certain towns.

The Connecticut Council of Small Towns (COST), which Reclaim Connecticut spoke to last week, said Malloy’s proposal could force towns and cities to raise property taxes.

“The proposed cuts in municipal aid will force steep increases in property taxes at a time when homeowners are already frustrated about rising property tax levels. Changes in federal law which cap the amount of state and local taxes residents can deduct from their income taxes are shining a spotlight on Connecticut’s property tax levels,” [executive director Betsy] Gara explained.

Senate Republican President Pro Tempore Len Fasano (R-North Haven), one of the two most powerful Republicans in the legislature, said Malloy has not learned from his mistakes, calling his proposal one part of an “irresponsible” brand.

“In his last term, Gov. Malloy is doing everything he can to make sure his failed policies outlive his time in office. After seven years of disappointment, the governor still hasn’t learned from his mistakes. His brand of irresponsible tax policies, what he calls a progressive agenda, has created the crisis Connecticut now faces. What the governor released today is nothing more than a continuation of his legacy of tax increases, economic decline and penalties on the most vulnerable.

At least four gubernatorial candidates weighed in.

Tim Herbst, former first selectman of Trumbull, said the proposal demonstrates “a pathological commitment to hiking taxes and fees on struggling Connecticut families and businesses.”

“As I said when the governor floated his gas tax hike last week, Gov. Malloy has demonstrated a pathological commitment to hiking taxes and fees on struggling Connecticut families and businesses,” Herbst said. “Malloy’s tenure in office has also demonstrated the lengths insiders in Hartford are willing to go to bypass even the most obvious, necessary and common sense reforms to the bloated bureaucracy in Hartford and reduce the unfunded liability burden that is pushing our state into permanent fiscal crisis.”

Mayor Mark Boughton (R-Danbury) said in a statement that Malloy “has failed the people of Connecticut once again.”

“Dan Malloy has failed the people of Connecticut once again. He has proposed tolls with no plan or detail as to where they will go or how much people will have to pay. What’s more is that his tolls will actually result in a reduction in federal transportation funds for our state. This budget will make Connecticut even less competitive and will only lead to more people moving out of state,” said Mark Boughton.

Steve Obsitnik wrote in a tweet that tax hikes are “not the answer.”

Dave Walker tweeted that higher taxes have “failed” Connecticut.

Reclaim Connecticut will update this post as more reactions come in.