House Democratic leaders released a revised two-year proposed state budget that includes ideas from all legislative caucuses, as well as input from municipalities, the business community, hospitals, and other constituencies. The updated balanced and honest budget is being presented to all legislative caucuses and the governor with a goal of final adoption of a full biennium budget in July.

MUNICIPALITIES

Maintains our commitment to our public schools, cities and towns by funding municipalities at current levels

LOCAL GOVERNMENT BUDGET REFORM

  • Provides towns with additional revenue options
  • Gives local councils/Boards of Finance a line item veto over administrative and non-curriculum expenditures if voted by ¾ majority
  • Creates municipal oversight of finances and economic development for towns that are in distress
  • Facilitates regionalism through changes to collective bargaining statutes

TAX REFORM

  • Restores property tax credit
  • No new taxes on hospitals
  • $36M reductions of tax expenditures and credits
  • Increases sales tax to 6.99% to help maintain funding for cities and towns
  • In FY20, Social Security tax break & college kids STEM tax break

INVESTS IN OUR ECONOMY

LIVABLE COMMUNITIES

  • Allows municipalities to create “urban development districts,” including 0% Corporate Tax rate for new and expanding businesses
  • Develops and capitalizes municipal economic development agency

WORKFORCE DEVELOPMENT

  • Supports the new, business-oriented workforce-development agency created under HB 5590
  • Funds workforce programs with DOL
  • Funds the technical high schools

THE CONNECTICUT EXPERIENCE

  • Set-up dedicated revenue stream for tourism funding
  • Passport to Parks

STREAMLINING GOVERNMENT & STRUCTURAL CHANGE

  • Results-First to State Agency Contract Reform
  • Requires state agencies and municipalities to consolidate offices to create “one-stop” government centers in FY 19, co-locating state and municipal services to the extent possible
  • Reduces layers of management in state agencies
  • Increases teacher pension contribution by 2%, sets up a process to move teachers into state health care partnership plan in FY20
  • Funds the Contracting Standards Board
  • Reform of state employees’ workers compensation program, resulting in better care and savings
  • Creates ECS Commission
  • Eliminates Legislative Committees

DEVELOPS PROGRAMS TO ADDRESS

  • Crumbling Foundations
  • Lead Abatement
  • Sinking Homes