May 5, 2011

TOUGH\FAIR BUDGET SIGNED INTO LAW
Yields Additional State Revenue for New Haven

Rep. Toni Walker, House Chair of the budget-writing Appropriations Committee, praised legislative passage and the governor’s approval of a biennial budget that contains no borrowing or use of one-time revenues, protects safety net services and provides additional state revenue to cities and towns, including New Haven.

New Haven will receive an increase in municipal aid of $7,464,461 in fiscal year 2012 and $7,907,002 in fiscal year 2013 when compared to the $198,484,899 the Elm City received in fiscal year 2011.

The final budget includes lower taxes than Governor Dannel Malloy’s original proposal – including the elimination of the governor’s gas tax increase and the restoration of the property tax credit to $300 – and shifts some of the tax burden to wealthier residents through the progressive income tax and a tax on luxury goods.

“This is a fair budget that cuts spending and asks everyone to share the load,” Rep. Walker said. “We crafted a budget that protects the safety net, middle class and cities and towns.”

Under the biennial budget, more than a dozen state agencies will merge or be consolidated in the name of efficiency, even as the vital functions of those agencies are preserved.

Speaker of the House Christopher G. Donovan (D-Meriden) said, “We have made significant spending reductions, consolidated 30 percent of our state agencies and maintained important investments that will help grow businesses and protect families. After 3 years of economic hardship, our state’s finances are stabilized and Connecticut is moving forward on the road to economic recovery.”

“We are turning a corner, putting our fiscal deficits behind us and moving forward with the business of creating jobs and growing our state’s economy,” said House Majority Leader Brendan Sharkey (D-Hamden). “Unlike the budgets in New York and New Jersey, we are protecting funding to cities and towns. Schools, town services and local property taxes will not be impacted. We’ve made real deep cuts, reduced the debt, fully funded our pension obligations and restored the rainy day fund. Making tough decisions is what the people of Connecticut expect us to do.”

The Malloy administration will continue its negotiations with state employee unions to come up with the labor concession package that is the final piece of this budget.