May 2, 2006

HOUSE AND SENATE PASS STATE BUDGET & TAX PACKAGE
Plan includes additional money for Montville

The Montville Delegation said the state budget approved by the House of Representatives contains increased state dollars for Montville, no new taxes and makes long term investments that will save taxpayers hundreds of millions of dollars in the long term.

“I am pleased to see additional property tax relief coming to the towns, added property tax credits, business tax relief, and economic development incentives for the region,” said Rep. Ritter. “This budget leaves the state in a good position to weather the future declining federal funds as well as give our economy the best opportunity for growth.”

“The budget goes a long way in helping the towns and the state provide vital services to citizens,” Rep. Ryan said. “The increased property tax credit will help property owners with increasing home ownership costs.”

Residents will see a reduction in their state income tax liability with an increase in the property tax credit to $500. The credit can be applied against property taxes paid on cars or homes.

Montville will see an increase of $234,583 in state aid (including ECS, PILOT, TAR and other statutory grants) over and above what the governor proposed in her February budget address. Other major investments were made in the HUSKY children’s healthcare program as well and in job creation and economic development initiatives.

The current state budget surplus of about $660 million was used mainly to pay down long term debt, increase the balance in the Rainy Day Fund and fully fund the teachers’ retirement fund through 2007. Additional surplus dollars were also used to increase state aid to cities and towns.

Tax cuts for business include the elimination of the corporate tax surcharge for 2007 and a phase out of the property tax paid on manufacturing equipment.