Wednesday, May 04, 2011

Budget passed at State Capitol

Late last night the House approved the two-year, $40.11 billion budget. The new budget resolves the estimated $3.3 billion deficit that threatened to disrupt government services at some point.

The vote wasn't strictly along party lines, with 15 Democrats voting against the budget along with 52 Republicans, but it still passed 83-67. Democratic Reps. Linda Schofield, Paul Davis, Kim Fawcett, Mary Fritz, Claire Janowski, Ed Jutila, Steve Mikutel, Frank Nicastro, Jason Rojas, Richard Roy, Kim Rose, Dan Rovero, Jonathan Steinberg, Kathy Tallarita, and Chris Wright voted with Republicans. Gov. Malloy now has five days to sign the bill. UPDATE: The Governor will sign the budget today at 3:00PM at the Capitol.

The only stumbling block remaining is for the State unions to agree to $2 billion in concessions. Malloy stated in a press release:
“Now it’s up to my Administration to reach an agreement with our fellow state employees and to present it to the legislature for ratification. I remain hopeful that we’ll get there. If we don’t, I remain committed to presenting an alternative budget to the General Assembly in the next couple of weeks.

“Make no mistake: come July 1, Connecticut will have an honest, balanced budget in place. No smoke, no mirrors. A solid foundation for the future.”
The new budget increases the income tax .5% on individuals making more than $50,000 and 1% on couples and families making over $200,000. The state sales tax goes from 6% to 6.35%, and a wide variety of taxes are created or raised slightly.

CT News Junkie has more details on the budget.


Anonymous said...

AT least he got those rich folks making $50K.

CT Bob said...

It actually is something of a progressive tax, with the wealthier people paying a larger percentage increase. And I don't think .5% on individuals making over $50K is exactly going to break the bank. On $50,000, 1/2% is $250. If that's the amount that will drive you over the edge into insolvency, you're probably already fucked.

The state is facing a $3B+ deficit; you can't make an omelet that size without breaking an egg or two.

My bigger concern is how Malloy is supposed to get $2B over 2 years in concessions from state workers. I wouldn't be surprised if they struck over his plan.

Anonymous said...

The thing that really stinks is that mallow screwed the unions of the state of CT. This guy is the worst kind of Republican. Not only is he liberal and put forth job killing bombshell.

He created 1.5 billion in new wastful spending that has to be paid for with real middle class jobs. CT is bracing for mass union layoffs so random cities can get their new opera house built with food taken out of a great many families mouths.

Truly sad and tragic that this state is against jobs and the middle class no matter who is in office.

CT Bob said...

I don't envy Malloy in having to deal with this situation. I don't know if there IS a solution that wouldn't affect a large portion of the state negatively.

We have a 3.3 billion dollar deficit. That's about $1000 for every person in the state. Unless a giant bag of money falls out of the sky, there isn't going to be a painless way to make up that kind of shortfall.

JTHM said...

Oh puleeeze! We're broke, yet 1million to "study" a railway from Bristol to Waterbury? They just approved 90 million for the first step in a 600 Million dollar busway that they admit will need to be subsized 10 million a year to operate. 4700 lower wage State workers to go on unemployment becuase they can't agree that we're broke.
Yup...I want to be the Liberal Democrat to stand on that platform.