State Budget Delivers Historic Tax Cuts and Critical Investments

June 7, 2023

After months of negotiations, we delivered a new two-year state budget that includes the largest income tax cut in the state’s history and significant increases in funding for local schools, also known as Education Cost Sharing (ECS) funds.
As House Chair of the Bonding Subcommittee and a member of the Finance, Revenue and Bonding Committee, this balanced, bipartisan budget maintains our commitment to promoting fiscal responsibility and stability to continue strengthening our economy, while delivering on key investments to support children, families and seniors.

    The highlights of the budget include:

    • $3.3 billion deposit into the Rainy Day Fund, helping us maintain a high credit rating and preparing us for any possible economic downturn
    • Pre-pays an additional $2.072 billion in unfunded pension liability
    • Includes the largest Personal Income Tax Cut in Connecticut history ($190.6 million in FY 24 and $421.7 million in FY 25)
    • Exempts more retiree income from the state income tax
    • Continues our car tax cap
    • Increases funding to towns, which helps stabilize and lower local property taxes
    • Continues property tax credits for homeowners

    Supports our robust safety net services by:

    • Funding our nonprofit providers – 2.5% cost of living increases for critical service workers
    • Providing funding to group home employees – roughly a 4.5% pay increase
    • Making historic investments of more than $30 million for residents with Intellectual and Developmental Disabilities (IDD)

    With this good budget stewardship and honoring the fiscal guardrails, we will maintain our excellent credit rating and pay down debt.