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Malloy rolls out state budget plan

Politics

HARTFORD, Conn. (WTNH)– It’s state budget day at the State Capitol and Governor Dannel Malloy rolled out the budget plan. It’s a plan designed to cut more than a billion and a half dollars in spending as the state continues to face a ‘low growth’ economy and massive obligations to the state employee pension fund.Web Extra: Transcript of Governor Dannel Malloy’s Fiscal Year 2018-2019 Biennial Budget Address

Malloy touts no tax hikes but the elimination of $200 property tax credit hits homeowners that make under $100,000.

Malloy admits that deficit is $1.7 billion but says $320 million will come from revenue collections. Malloy will cut $400 million in town aid by requiring towns to pay that amount to the teacher pension fund.

Also there will be $250 million in cuts from state agencies.

The revenue increases will come from an increase in tobacco tax, an elimination of property tax credit and the reduction in earned income tax credit. When it comes to the tobacco tax, that would be the same as in New York which is $4.35 per pack.

Malloy projects $700 million in savings from labor concessions. The $700 million in labor concessions is wanted in labor negotiations. The alternative would be 4,200 more state employee layoffs. The administration says it is optimistic that labor concession will equal $700 million, avoiding layoffs.

Additionally, to help cities recoup losses in state aid, Malloy proposed allowing cities to assess hospital to pay local property taxes. The proposal that allows cities to tax hospitals would be offset by increased Medicaid payments. So, hospitals could actually end up on the plus side.

Also in the budget plan, the five year pistol permit will go up from the current $70 to $300.

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