State Representative Tim O'Brien

Comparing Budget Proposals.

While Gov. Rell’s proposed budget would increase taxes mainly paid by the middle class and poor, the fairer plan would, instead, ask the wealthiest 1% of people to pay slightly higher income taxes:

Issue

Governor’s Proposal

Legislative Proposal

Cigarette Tax

$0.74 per pack increase

No increase

Other Tobacco

From 20% to 90%

No increase

Alcohol Tax

15% increase

No increase

Corporate surcharge

FY 06–15%, FY 07–10%

FY 06–15%, FY 07–15%

Property tax credit

Credit down to $350

Credit increased to $500

Millionaire Tax

None

Effective 1/1/05
	Joint	Single	Head of House
5.75%	$500k	$265.5k	$396k
6.00%	$750k	$398.5k	$594k
6.25%	$1m	$531.5k	$792k
6.50%	$2m	$1.062m	$1.580m

Effective 1/1/06
	Joint	Single	Head of House
6.00%	$500k	$265.5k	$396k
6.25%	$750k	$398.5k	$594k
6.50%	$1m	$531.5k	$792k
6.75%	$2m	$1.062m	$1.580m

Estate Tax

Defer the phase-out of the gift tax for 2 years

Keep the state estate tax by decoupling it from the federal estate tax, which is being phased-out. Unify gift and estate tax systems.

And, even though the Democrats' budget plan was only 1.7% higher than the governor's proposal, the Democrats' plan would have addressed more of the real needs in our state:

Issue	Governor’s Budget 2005-06	Legislative Proposal 2005-06	Governor’s Budget 2006-07	Legislative Proposal 2006-07
City & Town Aid	$85 million increase	$165 million increase – $80 million increase over the Governor’s	$20 million increase	$106.5 million increase – $86.5 million over the Governor’s
Increase Magnet School subsidies for RESC Magnets	$3 million included	$5 million included; $2 million more than the Governor	$4.9 million included	$7.1 million included; $2.2 million more than the Governor
Provide funding for new Early Childhood Programs	No new funding included	$832,000 included	No new funding included	$832,000 included
Provide for Adult Education for young adults	No new funding included	$250,000 included	No new funding included	$500,000 included
Increase funding for charter schools	No new funding included	$1,125,000 included	No new funding included	$2,250,000 included
Increase staff at technical high schools	No new funding included	$200,000 included	No new funding included	$300,000 included
Increase School Readiness subsidies	$2 million included	$3.94 million included; $1,94 more than the Governor	$4 million included	$6.43 million included; $2.43 million more than the Governor
HUSKY for Adults	Eliminated	These benefits are not eliminated	Eliminated	These benefits are not eliminated
COLAs for nonprofit providers	Only some providers received COLAs	All providers received COLAs	Only some providers received COLAs	All providers received COLAs
Nursing Homes	$48 million increase	$56 million increase - $8 million more than the Governor	$48 million increase	$56 million increase - $8 million more than the Governor
Hospital Funding	No reduction	$10 million increase	$15 million reduction	$25 million increase
CT Children’s Medical Center	No reduction		$6.7 million subsidy eliminated	$6.7 million subsidy restored
HUSKY co-pays	$3 co-pay instituted	Co-pay eliminated	$3 co-pay instituted	Co-pay eliminated
Health Services for Legal Immigrants	Services eliminated	These services are not eliminated	Services eliminated	These services are not eliminated
Allow the pass- through of the Federal COLA for Supplemental assistance	Not included	The clients will receive their COLA	Not included	The clients will receive their COLA
ConnPACE	Not enough funding included to hold recipients harmless upon enactment of Medicare Part D	Adequate funding is included to hold ConnPACE recipients harmless	Not enough funding included to hold recipients harmless upon enactment of Medicare Part D	Adequate funding is included to hold ConnPACE recipients harmless
UConn	$5.3 million reduction	The cut will not be made	$11.4 million reduction	The cut will not be made
UConn Health Center	$1.6 million reduction	The cut will not be made	$1.8 million reduction	The cut will not be made
Community Colleges	$4.4 million reduction	The cut will not be made	$6.2 million reduction	The cut will not be made
CCSU and other CSUs	$2.7 million reduction	The cut will not be made	$7.2 million reduction	The cut will not be made
Bus Fares	Increase Bus fares from $1.25 to $1.50	Bus fares will not increase	Increase Bus fares from $1.25 to $1.50	Bus fares will not increase

If you have any questions about any of this, feel free to send me an e-mail at Tim.OBrien@cga.ct.gov.

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