May 1, 2006

HOUSE AND SENATE PASS STATE BUDGET
WITH BROAD BI-PARTISAN SUPPORT
Plan includes additional money for New Haven

Representative Juan Candelaria (D-New Haven) said the state budget approved by the House of Representatives and the Senate contains increased state dollars for New Haven, no new taxes and makes long term investments that will save taxpayers hundreds of millions of dollars in the long term.

Rep. Candelaria stated, “This bipartisan budget increases aids to towns, increases funding in current service programs such as husky and repeals the property tax on machinery and other equipment creating a competitive edge for CT business. This is certainly a sensible legislation that focuses on job creation and economic growth.”

Residents will see a reduction in their state income tax liability with an increase in the property tax credit from $400 to $500. The credit can be applied against property taxes paid on cars or homes.

New Haven will see an increase of $6,274,409 in state aid (including ECS, PILOT, TAR and other statutory grants) and $713,338 for special education, over and above what the governor proposed in her February budget address.

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 and to return funds to towns and cities like New Haven.