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Thursday, February 06, 2014

Malloy Offers Lean $19 Billion Re-Election Year Budget

By Keith M. Phaneuf

www.ctmirror.org

Gov. Dannel P. Malloy proposed a $19 billion budget Wednesday that offers tax breaks for middle-income households, consumers and towns while limiting spending growth to just under 3 percent.

The plan for the fiscal year that begins July 1 doubles the emergency budget reserve, but also effectively spends over $200 million in projected surpluses to provide those tax breaks. The proposal expands the built-in deficit after the election by more than $50 million, pushing it to $1 billion.

Taking advantage of recent growth in tax receipts, the governor also proposed new funding for pre-kindergarten programs, supportive housing for the mentally ill and rental subsidies for low-income seniors.

The administration not only kept its word to preserve existing levels of municipal aid, but also recommended an $8 million increase in a grant that reimburses communities for lost revenues tied to property-tax-exempt colleges and hospitals.

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