Community Corner
Malloy's Budget Passes State House, Senate
Spending plan includes largest tax increase in state history, governor says it's needed to restore fiscal stability.
The Democrat-backed $40 billion proposed two-year budget that includs the largest tax increase in Connecticut history won final approval in the state House of Representatives Tuesday night by an 83 to 67 vote.
The bill passed by the Senate early Tuesday morning by a vote of 19-17. Gov. Dannel Malloy said he will sign the budget.
“With the passage of this budget by the Democrats in the House of Representatives, coming on the heels of yesterday’s passage by the Senate, Connecticut has taken another important step toward much-needed fiscal stability," Malloy said Tuesday night.
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"In particular, I want to thank Speaker Chris Donovan, Majority Leader Brendan Sharkey, Appropriations and Finance Co-Chairs Toni Walker and Patricia Widlitz, and the other 79 Democrats who had the courage to make this vote," he said. "As I said yesterday, I know it’s a tough vote – it’s also the right vote.
"This budget is balanced, honest, and contains none of the gimmicks that helped get us into this mess. It will provide the stability we need to foster much-needed job creation – which is everyone’s top goal," the governor said.
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But the budget is contingent on his administration's ability to win concessions from state unions -- something that has not yet happened.
“Now it’s up to my administration to reach an agreement with our fellow state employees and to present it to the legislature for ratification. I remain hopeful that we’ll get there," he said. "If we don’t, I remain committed to presenting an alternative budget to the General Assembly in the next couple of weeks.
“Make no mistake: come July 1, Connecticut will have an honest, balanced budget in place. No smoke, no mirrors. A solid foundation for the future.”
Republican State Rep. Al Adinolfi (R-103) disagrees.
“This budget puts too much pressure on the already stressed taxpayers of our state,” he said. “The people of Connecticut can’t afford to pay more in taxes, but this budget forces increases on dozens of goods and services with little regard to the middle class taxpayer who pays the bill. I will not vote for a budget that increases taxes.”
Adinolfi said the so-called “Amazon tax” and a new tax on cosmetic surgery won’t bring the revenue the Democrats estimate. Department of Revenue Services Commissioner Kevin Sullivan said those taxes are “uncollectable” and will actually decrease state revenue, Adinolfi said.
“The Democrats rushed this budget to a vote before securing the $2 billion in union concessions needed to actually make it balance,” Adinolfi said. “I don’t understand how anyone in good conscience can cast a vote for a budget that is out of balance before it even starts. Common sense tells you that just doesn’t make sense. You can’t call a budget balanced if the numbers don’t add up. You can’t count on hope to pay the bills.”
The Democrat budget also eliminates the tax-free exemption for clothing and shoes under $50, cuts the property tax exemption by 40 percent and raises taxes on everything from non-prescription drugs to towing and car repairs, Adinolfi said, as well as increases the sales tax from 6 to 6.35 percent.
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