There’s a $1.5B Hole in the Budget. How Do CT Leaders Plan to Fill It?May 17, 2017
Reclaim Connecticut compares and contrasts the proposals from Gov. Dan Malloy (D-Conn.), leading Democrats, and leading Republicans.
Connecticut has a new $1.45 billion hole in its two-year budget. This, of course, is on top of the $3.6 billion deficit already anticipated for fiscal years (FYs) 2018 and 2019.
Here’s how various state leaders have proposed closing the $1.45 billion hole. (Note: this is only an analysis of proposals to meet the new, $1.45 billion hole, not the existing $3.6 billion deficit).
Gov. Dan Malloy (D-Conn.) relies largely on spending cuts ($533M, or 36%) and reductions to local aid ($710M, or 48%) to reach $1.45 billion.
However, local officials have warned reductions to local aid will lead to property tax hikes, and Malloy’s budget also raises $160M in new revenue that mostly comes from a tax on high-value homes.
Connecticut Democrats in the House and Senate rely on a mix of spending cuts ($440M, or 30%), reduction to local aid ($420M, or 28%), and tax increases ($450M, or 31%) to reach $1.45 billion.
A majority of the tax hike comes from legalizing and taxing recreational marijuana (~$240M, 53%) and unspecified “application & licensing fees” ($160M, 35%).
CT SENATE REPUBLICANS
Connecticut Senate Republicans do not raise any major taxes. Instead, the rely on more savings from the state’s labor unions ($663M, or 45%) and spending cuts ($324M, or 22%).
Connecticut Senate Republicans also take $320M (22%) from a program that funds clean energy and puts it into the General Fund.
CT HOUSE REPUBLICANS
Like Connecticut Senate Republicans, Connecticut House Republicans do not raise any major taxes. They make spending cuts across the board to close the $1.45 billion gap.
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