Malloy Budget: $70M in Higher Spending, $215M in Higher Taxes, FeesFebruary 5, 2018
Gov. Malloy released what may be his last budget proposal, for adjustments to fiscal year (FY) 2019 appropriations and revenue. Here are the highlights.
Gov. Dan Malloy (D-Conn.) introduced what may be his final budget proposal, for adjustments to the state’s already-passed fiscal year (FY) 2019 budget. The budget needs to be adjusted because – surprise! – the state is already projected to be hundreds of millions of dollars in deficit for FY 2019.
Malloy’s proposals boil down to a few big numbers:
- $70 million in increases to spending (spending was appropriated at $20.658 billion in FY 2019, Malloy wants to spend $20.728 billion)
- Around $215 million in new tax hikes, fee increases, and the end of certain tax credits and exemptions
- Cuts to Education Cost Sharing (ECS) grants from the state to towns and cities, particularly Connecticut’s most well-to-do towns
According to Malloy’s office, the state budget passed last year appropriated $20.658 billion for FY 2019. Malloy wants to spend $20.728 billion. Some of the new spending includes, but is not limited to:
- $65.4 million in new General Fund spending
- $11.8 million for a “Passport to the Parks Fund”
- $3.7 million in new Tourism Fund spending
- -$8.3 million in Special Transportation Fund (STF) spending
TAX AND FEE HIKES
Malloy proposes no new taxes, but tries to collect up to $215 million in revenue through tax and fee hikes, and by ending various exemptions and credits.
The new tax and fee hikes include, but are not limited to:
- $49.7 million from eliminating the $200 property tax credit
- $34.2 million in cigarette, e-cigarette, and cigar tax hikes
- $30 million from repealing a sales tax exemption for non-prescription drugs
- $22.9 million from increasing the real estate conveyance tax
- $20 million from expanding the bottle bill to other beverages
CUTS TO LOCAL AID
Education Cost Sharing (ECS) grants are critical to many towns and cities for funding local education. In addition to cuts already passed in last year’s budget, Malloy proposes zeroing out ECS grants “for any municipality that has an [Equalized Net Grand List Per Capita] higher than $200,000 and is not an Alliance District.”
Want to see more content like this?
Sign up for Email updates.