It's going to be a late night in Hartford.
Connecticut lawmakers will begin voting on a new state
budget that makes big
investments in children, climate change, and
paying down pension debt – but also includes historic tax cuts.
The Connecticut House of Representatives is
expected to approve the tax and spending plan tonight. The state Senate will
vote on it Tuesday.
Gov. Lamont says
it's the biggest tax cut in state history – even bigger than Gov. John Rowland’s cuts in 1995.
"These are tax cuts that are going to make a difference for you right now,” said Gov. Lamont.
The tax relief affects almost everyone:
Homeowners
- Property tax credit
increases to $300, and more people qualify
Parents
- One
time $250 rebate check for their first three kids. Only applies to individual
filers making up to $110,000 or joint filers making up $210,000. The top income
earners can claim slightly less
- Expanded Earned Income
Tax Credit
- 2,500 tax rebate for a
stillborn child
Drivers
- Car
taxes capped at 32.46 mills (1 mill costs $1 per $1,000 of a car’s assessed value). This will cut taxes in about
75 cities and towns.
- o
“Gas
tax holiday” and free bus rides extended until Dec. 1
Movie
theaters
- o
6%
admissions tax repealed in 2023
Wine
and spirits makers
- Farm
wineries, cider and mead producers now qualify for sales tax exemption
Lamont pushed back on Republican criticism that
most taxpayers won't see relief until next year.
"You're going to get that [car tax] bill on July 2 and
you can get that savings virtually that same month,” said Gov. Lamont.
Also, seniors’ pensions, annuities and 401(k) income will no longer
be taxed. It’s an attempt to keep retirees like 84-year-old Jerry Roisman
from moving south.
"People have tried to attract me [to
move] to Florida or South Carolina or a variety of other places,” the West Hartford resident said.
The budget also spends a lot – more than $24 billion.
There’s also pandemic pay for essential workers. The new Connecticut Premium
Pay Program will pay between $200 and $1,000 to workers making up $150,000 per
year. Workers must submit claims by Oct. 1. But only private sector
employees qualify; the Lamont administration is negotiating a separate “Hero Pay” package for state workers on top of new raises they’re about to receive.
Private social services providers will also
receive cost-of-living increases.
Other key provisions in the budget
·
Free
community college expanded from three years to four. Part-time students also
now qualify for at least $150 per semester.
·
Free
menstrual products in some school bathrooms, college campuses, and homeless
shelters
·
Expands
HUSKY Medicaid coverage to undocumented children 12 and under. Right now, the
cut-off is 8 years old. Kids must continue to receive benefits until
they turn 19, as long as they keep meeting income eligibility
·
Creates
a new Commission on Community Gun Violence Intervention and Prevention
·
5%
raise for judges
·
Retailers
would be required to check ID for all tobacco purchases
·
New
pilot program for psychedelic-assisted therapy at Connecticut Mental Health
Center
·
Requires
climate change to be taught in public schools. Right now, it’s an option
·
New
indoor air quality grants for schools
·
State
Treasurer could automatically refund people up to $2,500 in unclaimed property without
them filing a claim
The budget also includes some head-scratching
items, like $2 million to establish non-stop flights to Jamaica.
Lawmakers may also receive their first pay raise in two
decades. Members only earn $28,000 per year for an increasingly full-time job.
The budget includes money for the raise, but a separate bill would actually
implement them. The state attorney general would also get a raise under the
legislation, bringing him on par with what judge’s earn.
It's all possible because Connecticut is swimming in cash, due to
inflation, a strong stock market, and an infusion of one-time federal relief
funds. The latest state
surplus is
now almost $5 billion, letting lawmakers spend money on priorities while also
cutting taxes in an election year.
The surplus also means a $3.5 billion payment to
address Connecticut’s staggering debt load.
Republicans proposed even deeper
tax cuts, including an across-the-board 1% income
tax rate cut that Democrats say is too expensive and may violate federal rules. GOP lawmakers were not at the negotiating table,
and say the budget is rushed.
"This is an unacceptable way to run our government -- that we get this
package at 4:37 a.m.,” said state
Rep. Nicole Klarides-Ditria (R-Seymour).
The new budget also addresses Connecticut’s troubled school construction program, now the
focus of a federal grand jury investigation. It tightens the rules surrounding
emergency projects, which some school districts say a former budget official
used to steer construction contracts to certain bidders, a claim he denies. The
budget also restores funds to the State Contracting Standards Board, which has
the power to revoke contracts.