State Budget deal up for vote tonight [WTNH]

WTNH

HARTFORD, Conn. (WTNH) — With a Wednesday at midnight deadline looming, state lawmakers are preparing to debate and vote on a two year, $40 billion state budget plan that will cut some taxes, keep some the same, and raise others.

This deal was hammered out over the weekend by the Democratic leadership and the Governor’s office with no input from the Republicans.

If you live in one of the larger cities like New Haven; the budget deal comes with the promise of the long discussed cut in the car tax. It will cap the ‘Property Tax’ on cars and trucks at about 30 mills which would result in hundreds of dollars in savings for average car and truck owners in New Haven, Hartford and Bridgeport. “This is going to fundamentally shift ‘Property Taxes’ in our state with savings for middle income residents,” said State Senate Majority Leader Bob Duff (D-Norwalk).

The Governor did not get approval of his plan to deregulate the prices in liquor stores but liquor stores will stay open an hour longer every day. The sales tax stays at the same rate of 6.35 percent but proposals to expand it to dry cleaning, veterinary and other services is dead. A portion of the ‘Sales Tax’ will go to fund the ramp up of the Governor’s 30 year rebuild of the state’s roads, bridges and railroads.

State Senate Minority Leader Len Fasano (R-North Haven) said, “The second highest tax increase in Connecticut’s history following the first highest tax increase in Connecticut’s history. It’s just not going to move Connecticut forward, it’s going to move Connecticut backwards.”

Among the losers in this budget deal are wealthy residents; the income tax rates on those making $500,000 thousand a year and higher will see a slight increase in the rate although the rates will still be below New York and New Jersey.

“The initial reaction is almost shock that the legislature plans to actually go forward and pass this package,” said Joe Brennan of the CT Business and Industry Association, the state’s largest business group.

There are some hefty increases in some taxes on corporations and the extension of a tax that was supposed to expire which has the business community very upset. Added Brennan, “Some of the things I’m hearing from our members are scary as far as them reconsidering Connecticut as a location…it’s that serious.”

Fairfield based General Electric took the highly unusual step of issuing a statement saying in part; “raising taxes again on residents, businesses and services makes businesses, including our own…seriously consider whether it makes any sense to continue to be located in this state.”

But the Democratic leadership says that now that a portion of the state ‘Sales Tax’ will dedicated to the Governor’s 30 year road and bridge repair program…that should be good for business. “For us, here in the state of Connecticut, that’s going to be a game changer and that’s going to move us forward economically over the next generation,” added Senator Duff.

The new Republican leader in the House, Themis Klarides, is hoping to stop the deal when the House votes. She only needs to convince a dozen Democrats to join her 64 Republicans in saying this is a bad deal. “I’m hoping that there are at least 12 people on the Democratic side that have constituents throughout this state that will tell them, ‘you can’t possibly vote for this budget,” said Klarides.

And that is not outside the realm of possibility. Several Democrats in the House have said they can’t vote for this so the Democratic Speaker, Brendan Sharkey, will have his work cut out for him tonight.

It takes 76 votes to pass in the House if all members are present.