A two-year, $41 billion budget that would have created new taxes and fees but wouldn't have included increases in the sales or income taxes was tabled yesterday. A full plan was released this morning. A Transportation Authority would be established by the budget, which also gives the Authority power to establish electronic highway tolls.
Wilton Senator Toni Boucher says in addition to taxes and fees, local municipalities would be required to pay a portion of the teachers’ retirement plan, negotiated by the state. She says these measures virtually guarantee that local property taxes will go up.
Newtown Representative Mitch Bolinsky says the GOP plan restores education funding, eliminates municipal cuts, provides relief from heavy-handed state mandates and makes permanent, sustainable structural changes to a broken state government. He adds that the Social Services Safety Net is fully funded for day and employment services for individuals with intellectual and developmental disabilities, Care4Kids is restored, and school based health clinics are funded.
Officials said the new budget plan includes a 49-cent monthly tax on the estimated 3 million cellphones in Connecticut, a cigarette tax increase of 45 cents a pack and a decrease in the personal property tax exemption on state income tax forms, from $200 to $100.
The proposal also would increase the hospital provider tax to 8 percent, from 6 percent. But that hike would be eased by other funding provided to hospitals, officials said.
The tax increases and other revenue changes would give the state an extra $3.6 billion over the next two years, according to officials.