Malloy’s New Budget: $700M Cut to Local Aid, $533M in State Cuts, $160M in Tax HikesMay 15, 2017
Gov. Dan Malloy (D-Conn.) proposed a new budget on Monday that tries to zero out an expected $4.7 billion two-year budget deficit.
The revised budget released by Gov. Dan Malloy (D-Conn.) on Monday cuts $700 million from local aid and raises $160 million in new taxes in fiscal years (FYs) 2018 and 2019.
FY 2018 runs from October 1, 2017 through September 30, 2018, and FY 2019 runs from October 1, 2018 through September 30, 2019.
Malloy’s changes include:
- Reductions in state aid to towns and cities totaling $362 million in FY 2018 and $347.7 million in FY 2019, or almost $710 million over two years.
- General Fund spending cuts of $240 million in FY 2018 and $293 million in FY 2019, or $533 million over two years.
- Tax increases of $79.2 million in FY 2018 and $81.7M in FY 2019, or almost $161 million over two years. The majority ($102.2 million) comes from higher real estate conveyance taxes on properties worth more than $800,000.
Malloy made the proposal to bring his two-year budget into balance. Plummeting individual income tax revenue reported earlier this year blew a $600 million hole in the FY 2018 budget and a $845 million hole in the FY 2019 budget ($1.45B over two years), and Malloy is attempting to fill those holes.
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