House Dems Two-Year State Budget

June 29, 2017

House Democrats released a revised two-year proposed state budget that includes ideas from Democrats, Republicans and the governor, as well as input from municipalities, the business community, hospitals and other constituencies. I will be holding an info-session in Stratford in the coming weeks.

Investing in Connecticut’s Future

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