State Rep. Klarides-Ditria Lauds Budget Passage

Dear Neighbors,   After 117 days, the Connecticut General Assembly has passed another bipartisan budget, this time by a wide 126-23 margin in the House of Representatives and a 33-3 margin in the State Senate. I supported this broad, bipartisan agreement, and the large majority of votes from both parties indicates the likelihood of a veto override if the Governor once again vetoes the budget.   We were able to close a massive $3.5 billion deficit with only about 1% of total revenue resulting from tax and fee policy changes. Although the SEBAC union agreement approved by the majority party in July deeply constrained our abilities to reduce spending, we were able to reduce non-contractual spending in many areas of the budget while protecting services for those most vulnerable in our community, including individuals with intellectual disabilities, working families, and seniors. The budget also reduces overall bond authorizations, helping to control debt service spending for years to come.   Importantly, the budget features a variety of long-lasting spending constraints:   • Finally after 25+ years, it implements an effective constitutional cap on state spending; • An annual bonding cap of $1.9 billion in borrowing, a half billion less than what Governor Malloy approved to put on the state's credit card last year; • A revenue cap that prevents the state from spending all the money it expects to take in annually; • A volatility cap that will automatically send any excess revenue to the Budget Reserve Fund and help fund pension and debt service liabilities.   The budget also provides for tax relief by phasing in tax reductions for Social Security income, pension and annuity income, and gift and estate taxes for many residents across our state.   Additionally, this budget does not include the large tax increases that were previously proposed by Governor Malloy and the majority party, including proposed hikes to the income tax, sales tax, and hotel tax or new taxes on cell phone bills, homeowners insurance polices, restaurants, or investment properties. It also does not eliminate the car tax as once proposed.     As with any budget, however, it is not perfect. There are minimal revenue increases, reductions to energy efficiency programs, and greater contributions by teachers towards their pensions, which will go to their pensions - Not the General Fund. I do, however, feel that the good achieved by this budget far outweighs the tough decisions made to help balance it.   For more information on the bipartisan budget, visit cthousegop.com/budget.   As always, if you have any questions or concerns, please feel free to reach me at (860) 240-8700 or Nicole-Klarides-Ditria@housegop.ct.gov.   Sincerely, State Representative Nicole Klarides-Ditria