Tax relief, dollars for unfunded liabilities focus of Connecticut budget adjustment bill2 min read
Tax cuts and providing funding for unfunded liabilities are the focus of the budget adjustment bill passed by the Connecticut General Assembly, Gov. Ned Lamont said.
The governor announced the General Assembly ratified House Bill 5506, which gives taxpayers the largest tax cut in state history. The bill also contains investments in health care, education, transportation, and unemployment compensation.
“This bipartisan budget is the Connecticut difference I spoke of on the opening day of this legislative session,” Lamont said in the release. “The General Assembly voted to give taxpayers their largest tax cut in history, while paying down $3.5 billion in unfunded liabilities, making groundbreaking investments in child care, crime prevention, environment protection, and caring for our most vulnerable residents. We are transforming Connecticut, making it a place where people and businesses want to grow and set down roots.”
Included in the tax cuts are lower car and property taxes, the extension of the gas tax suspension through Dec. 1, tax credits for child care, and tax-free 401(k) and pensions for individuals earning less than $75,000.
Under the budget adjustment bill, the state will spend $25 million for Connectivity for Health and Mental Health Centers and organizations, and the Department of Energy will receive $16,158,373 to provide broadband infrastructure grants in underserved areas of the state.
Also tucked into the bill is $13.5 million that will be transferred to the Office of Policy and Management for private providers for human services for cost of living adjustments for corrections; housing; public health; social services; children and families; aging and disability services; mental health; and additional services departments within the state. The Office of Early Childhood and Judicial Department will also receive funding.
Connecticut Senate Republicans voted to ratify the House bill, but had proposed a deal that would have brought $1.2 billion in tax relief to the state.
Sen. Kevin Kelly, took to Twitter to voice his concerns over tax cuts. The veteran legislator tweeted, “Connecticut has overtaxed its residents at a level that is staggering at a time when inflation is crushing family budgets.
The budget bill also has an eye trained on climate change and transportation by sending up to $10 million to the Department of Energy and Environmental Protection to help fund a voucher program for medium- and heavy-duty zero emissions vehicles and buses. Funding will also be used for electric vehicle charging infrastructure.
The Department of Transportation, according to the bill, will receive $50 million for rail operations and the Pay-As-You-Go Transportation projects for matching funds in combination with the Infrastructure Investment and Jobs Act.
The Unemployment Compensation Program will receive $3 million for the Connecticut premium pay account, and up to $23 million for the Department of Social Services for Medicaid for salary adjustments and nonunion wage adjustments.
This article was originally posted on Tax relief, dollars for unfunded liabilities focus of Connecticut budget adjustment bill