Gov. budget plan may crash over gas tax

HARTFORD, Conn. (WTNH) - Governor Malloy's state budget plan appears to be heading for a crash over the gas tax.

With gas prices going up by the day, members of Malloy's own political party are balking at voting for a plan that includes a hike in the gas tax.

Democratic leaders over at the State Capitol say they intend to vote on the Malloy budget plan by Tuesday, but this is holding things up.

At one gas station across from the Capitol Complex regular was $4.36 a gallon today, and one of the reasons it's so high is because of state taxes.

The reason the taxes are so high is because, unlike our neighboring states, Connecticut has no highway or bridge tolls of any kind. The entire transportation fund for road and bridges and public transit is generated through the taxes on gasoline.

Governor Malloy's budget plan includes another three cent hike in the gas tax starting Jul. 1.

"We go to the pump at least twice a week, you see it's a new price everyday and you swallow it. If it was a tax, we'd resent it," says Sen. Steve Casano (D) of Manchester.

That's why several of the Democratic State Senators,who's votes Malloy needs, are balking at voting for his budget.

And things don't look any better in the House, where Democrats are also rebelling.

"I don't support it and I know many of my colleagues don't support it. Gas prices right now are ridiculous, and adding three cents to it is like a killing factor," says Rep. Frank Nicastro (D) of Bristol.

"The Gross Receipts Tax is probably generating just as much money as that three cent increase could raise," says Casano.

The Gross Receipts Tax  is the other tax on gasoline, at seven percent of the wholesale price, it goes up every time the price goes up, so the state is getting more from this tax every week and members of both parties say that should be enough.

The Governor told News 8 he is aware of the bad political appearance of raising the gas tax at this time, what he calls the optics.

"I'm aware of the discussions and I'm aware of the concern of the optics, I also have a budgetary concern about an impending deficit in that fund," says Malloy.

Another chunk of Malloy's budget is also coming down to the wire, the talks over his request for one billion dollars a year in give backs from the state labor unions.

Negotiations on the labor concessions and the Governor's three cent a gallon gas tax hike are also expected to go on all through the weekend at the State Capitol.