James Maroney

SENATE GIVES FINAL APPROVAL TO STATE BUDGET PACKAGE WITH HISTORIC TAX CUTS

More Aid for Local Schools and Nonprofits Rounds Out Bipartisan Two-Year State Spending and Revenue Plan

HARTFORD – State Senator Herron Keyon Gaston (D-Bridgeport / Stratford) today joined in the bipartisan Senate passage of a two-year state budget that includes a historic middle-class personal income tax cut while simultaneously providing towns more money for local schools as well as funding much-needed state social service programs.

The $51.1 billion biennial state budget passed the Senate today on a bipartisan vote of 35-1. The new state budget includes a total of $612 million in personal income and pension tax cuts while providing $300 million more in state aid to local school districts and hundreds of millions more for nonprofits to pay their employees higher wages.

In the new state budget, Stratford will receive over a $4.1 million increase in state Education Cost Sharing (ECS) grants over the next two years, and over $6.2 million in additional state funding over two years.

“This biennial state budget provides Connecticut with relief as funds will increase support for education and provide tax cuts for thousands of residents in Connecticut,” said Sen. Gaston. “Stratford alone receiving additional state funding increases support for children and their families. I am proud of the work done today by my colleagues that will award students an education and provide resources to local non-profits.”

The budget passed today includes the first personal income tax cut in Connecticut in nearly 30 years, and it’s focused on Connecticut in nearly 30 years, and it’s focused on Connecticut’s broad middle class – those earning up to $80,000 a year – although all taxpayers will benefit to some extent.

The current 3% income tax rate on the first $10,000 earned by single filers and the $20,000 earned by couples will drop to 2%, and the 5% income tax rate imposed on the next $40,000 earned by singles and $100,000 earned by couples will drop to 4.5%. The income tax cuts are expected to save moderate income households $300 to $500 per year.

The new budget also expands the income tax credit for Connecticut’s working poor from 30.5% of the federal Earned Income Tax Credit to 40%, helping approximately 200,000 Connecticut households.

The new budget also expands the income tax exemption for some pension and annuity earnings, expanding it to single filers making $75,000 – $100,000 and couples making $100,000 -$150,000.

On the spending side, local school districts are the winners, with many towns getting more state aid and no city or town seeing a reduction. The new budget provides over $232 million more in Education Cost Sharing (ECS) grants for Connecticut cities and towns, thereby providing property tax assistance. There’s also $16 million to continue expanded free school meals for children.

Private provider organizations that contract for state-sponsored social services (like aging, disability, corrections, housing, mental health and addiction, early childhood, etc.) will receive $87 million more in each year of the budget, providing 4% and 5.4% cost of living wage increases for their employees.

Other budget highlights include: $3 million to expand HUSKY health care for children up to age 15, regardless of their immigration status; $6 million to expand GPS monitoring of domestic violence offenders across the state; $5.4 million to implement early voting initiatives; Support for public higher education at levels far above those originally proposed