Budget Summary FY 2019 Compromise Budget

May 10, 2018

Budget Summary FY 2019 Compromise Budget

May 9, 2018

 Financial Polices and Taxes:

  • Contains no new tax increases.
  • Maintains new retiree tax breaks contained in last year’s bipartisan budget for pension & social security income.
  • Rejects governor’s proposal to eliminate $200 property tax credit which supports elderly and working families.
  • Reduces the tax on sales and storage of boats and marine dyed diesel to 2.99% to boost the boating industry in CT.
  • Restores $10 million to the Energy Efficiency Fund.
  • Maintains $7 million savings target for a hard hiring freeze.
  • Provides $16 million to the Retired Teachers’ Healthcare Fund to provide a full statutory contribution of 33%.

    Funding for Core Services:

  • Restores funding for the Medicare Savings Program in full to all 169,450 seniors. Cost of $130 million.
  • Restores funding for HUSKY A coverage for 13,000 low income working parents who otherwise would lose coverage beginning August 1.
  • Provides a 1% private provider COLA to all non-profit providers effective July 1, 2018 and incorporates I/DD wage contract changes passed by the legislature earlier this month.
  • Increases funding for the Judicial Branch court support staff.
  • Increases Vocational Agriculture per pupil grants by $1,000 per slot.
  • Provides $5 million for Emergency Placements for those with Intellectual and Developmental Disabilities.
  • Restores $18.5 million to magnet schools.
  • Provides $1 million for Connecticut Valley Hospital and Whiting Forensic Institute.
  • Restores funding for Elderly Nutrition Program and makes a separate line item to better protect this funding in the future.
  • Preserves grants for substance abuse treatment and mental health care.
  • Funds the Connecticut Temporary Assistance for Needy Families (TANF) with $5 million needed in the fund.
  • Fully funds aid to disabled adding in $1.4 million.
  • Fully funds Old Age Assistance with an additional $1.8 million.
  • Protects funding for fire training schools and eliminates governor’s cut.
  • Restores funding for the Hispanic Programs in DSS providing funding to nonprofits.
  • Provides funding for Puerto Rico evacuees in housing and provides municipalities with a significant influx of evacuees with increased Education Cost Sharing Grants.
  • Continues tourism and cultural programs funding.
  • Does not implement any cuts to Care 4 Kids.
  • Continues enhanced reimbursement rate for primary care providers.
  • Provides needed funding for dairy farmers
  • Funds the Honor Guard
  • Provides $16.2 million to the Board of Regents for fringe benefit support.
  • Restores $2 million to fully staff the Connecticut state veterans hospital’s critical care unit.

Protects Municipal Aid:

  • Restores full funding for Municipal Aid. $28.4 million more than appropriated in FY 2019 as originally enacted. $70.5 million more in municipal aid than FY 2018.
  • Fully funds the FY 2019 enacted Education Cost Sharing grants.
  • Fully funds Renters Rebate program, protecting 48,000 people. No longer shifts the expense onto municipalities.

 

Funds Transportation:

  • Fully funds the Special Transportation Fund resulting in surpluses in the fund in each of the next 5 years (accelerates the diversion of sales tax from sale of automobiles at car dealerships into FY 2019 at 8%). This allows us to fully fund transportation infrastructure projects.
  • Fully funds rail and bus operations.
  • Enacts “Prioritize Progress” in part, a long-term plan to support infrastructure improvements without taxes or tolls.

 

Implements Recommendations from the Commission on Fiscal Stability and Economic Growth as follows:

  • Study on pro-growth rebalancing of state taxes.  
  • Study on revenue and expense optimization.
  • Study on reforming of the Teachers’ Retirement System. 
  • Implements municipal relief by allowing schools to have volunteers perform work such as buildings and grounds maintenance.