Revised GOP Budget Eliminates Deficit, Claims No New Taxes and No TollsMay 3, 2018
Republican lawmakers announced a revised budget on Wednesday evening, which still claims to eliminate the fiscal year 2019 deficit without tax increases.
Republican leaders in the Connecticut House of Representatives and Connecticut Senate released a revised fiscal year (FY) 2019 budget on Wednesday. The budget still eliminates the FYs 2018 and 2019 deficits, without new taxes or tolls.
Senate Republican President Pro Tempore Len Fasano (R-North Haven) and House Republican Leader Themis Klarides (R-Derby) each stressed using projected revenue boosts responsibly, rather than spending those one-time boosts on long-term programs.
“While on paper it may appear that the state is suddenly flush with new cash in fiscal year 2019 as a result of the hospital deal delay, we cannot let the overspending mistakes of the past be repeated,” Fasano said.
“Instead of making new promises that the state cannot afford in future years, it resolves today’s issues, upholds the state’s commitments to vulnerable populations, and reduces Connecticut’s future deficits and unfunded liabilities,” Klarides said.
Here are some of the highlights from the revised FY 2019 budget:
- Eliminates the FY 2018 deficit, while still leaving a projected $864.5 million in the state’s rainy day fund by the end of FY 2019
- “Results in a surplus of $17 million in FY 2019.”
- “Contains no new tax increases.”
- “Contains policy recommendations that reduce the fiscal year 2020 deficit by $800 million.”
- Restores funding for the Medicare Savings Program (MSP), a program for seniors with bipartisan support in the legislature.
- “Fully funds the Special Transportation Fund resulting in surpluses in the fund in each of the next 5 years,” without the need for new taxes or tolls.
The revised budget largely tracks with the Republicans’ initial proposal, which also projected a balanced budget with no new taxes. Reports this week suggest Democrats are trying to strike a budget deal with Gov. Dan Malloy (D-Conn.), after working with Republicans on a bipartisan budget in 2017.
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