HARTFORD, Conn. (AP) - The Latest on Connecticut Gov. Dannel P. Malloy’s budget plan (all times local):
2:45 p.m.
Republicans and industry groups are criticizing Gov. Dannel P. Malloy’s proposed budget, saying it would hurt working- and middle-class families while increasing costs for hospitals.
The Democratic governor on Wednesday unveiled a two-year, $40.6 billion budget that would increase taxes by $200 million and allow cities and towns to tax hospital property. The proposal would eliminate the $200 property tax credit on state income tax returns and reduce the earned income tax credit for poor families.
Senate Republican President Pro Tempore Len Fasano says the budget plan would create “chaos” and is balanced on the backs of working- and middle-class families.
The Connecticut Hospital Association says taxing hospitals is an “attack” on communities and a hospital tax imposed several years ago has increased costs for patients.
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1 p.m.
Gov. Dannel P. Malloy’s new budget plan calls for $1.5 billion in state employee givebacks over two years and shifts about $400 million in teacher pension costs to cities and towns from the state.
The Democratic governor announced his two-year, $40.6 billion spending and taxing plan Wednesday before a joint session of the General Assembly. The proposal comes as the state faces a $1.7 billion deficit in the year beginning July 1 and another $1.9 billion the following year.
Malloy’s plan for the next budget year includes about $1.4 billion in spending cuts and $320 million in new revenue, including about $200 million in tax increases.
The governor’s budget also calls for reducing state aid to wealthier communities and sending more aid to poor communities including cities.
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9:59 a.m.
Gov. Dannel P. Malloy’s $20 billion budget plan for the next fiscal year includes about $200 million in new taxes, assumes $700 million in labor cost savings from state employees and shifts more than $400 million in teacher pension costs to cities and towns.
Office of Policy and Management Secretary Ben Barnes released details of the budget Wednesday morning ahead of the Democratic governor’s budget address to state lawmakers.
The state faces a $1.7 billion deficit in the year that begins July 1.
Barnes said the tax increases include about $100 million from eliminating the $200 property tax credit on state income tax returns and an additional $60 million on tobacco products.
Cities and towns would have to pay about one-third of the $1.2 billion annual cost of teacher pensions.
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