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More spending – but also sweeping tax cuts?
That’s what Connecticut lawmakers are recommending in their budget proposals this week.
Now, lawmakers must hammer out a deal with Gov. Ned Lamont before the legislative session ends on May 6.
MORE SPENDING
On Tuesday, the General Assembly’s Appropriations Committee recommended a $29 billion budget that spends nearly $150 million more than Lamont proposed.
Democrats said it’s meant to meet the moment amid uncertainty from Washington.
“We consider this a very serious, responsible budget,” said state Sen. Cathy Osten (D-Sprague), the committee co-chair.
The Legislature’s plan spends $31 million more than the governor on education, an additional $19 million for financial aid at public colleges, $3 million to expand rail service on Shore Line East and $2 million to hire 20 nurses and social workers at state prisons (to address a series of deaths at correctional facilities).
It also includes $30 million more than Lamont on Medicaid reimbursements for doctors.
“We made that promise three years ago and we have to fulfill that,” said state Rep. Toni Walker (D-New Haven).
Many providers refuse to see Medicaid patients because the state pays them so little.
“The funds are much needed and help address decades of underfunding,” said Gian-Carl Casa, president and CEO of the Connecticut Community Nonprofit Alliance.
The Appropriations Committee budget passed along party lines Tuesday afternoon.
TAX CUTS?
While lawmakers want to spend more, they also want to lower taxes.
Just one day earlier, another committee recommended hundreds of millions of dollars in tax cuts – including eliminating the sales tax for clothes under $100, school supplies and many appliances. Plus, the panel approved an expanded property tax credit, as well as new tax breaks for renters and dairy farmers.
“To provide tangible relief to Connecticut families, also tangible relief to our municipalities,” said state Rep. Maria Horn (D-Salisbury), the committee’s co-chair.
All that puts Democrats at odds with Lamont, who favors a more cautious approach.
Instead of ongoing tax cuts, the governor proposed a one-time $200 rebate check this fall.
“Connecticut is stepping up to protect our most vulnerable, and we’re trying to make life a little less expensive for working families in the middle class,” the governor said in his budget address on Feb. 7.
BUDGET GIMMICKS?
Republicans argue that Connecticut can’t afford any of this without using “budget gimmicks.”
“One of the things that is concerning to me is, we’re tending to move things off-budget again,” said state Sen. Heather Somers (R-Groton). “We did this years ago when we were not in a good financial position.”
To stay below the state spending cap, Democrats recommended diverting $650 million in surplus funds from this year's budget.
“Democrats, through their Appropriations and Finance proposals, have again offered an initial budget that we know won’t balance, which means none of it actually counts,” said Connecticut House GOP leader Vin Candelora (R-North Branford). “It’s press release fodder, not a plan.”
Democrats are also relying on Lamont to use what remains of a separate $500 million emergency fund, approved late last year, to offset federal cuts.
“When we’re talking about grabbing some of that volatile revenue – even if it’s one time – we have to be careful,” said state Rep. Joe Polletta (R-Watertown). “There are a lot of things in here that are good and I hope make it across the finish line. And I hope, in the end, reduce the cost of living for the average Connecticut resident.