Gov. Dannel P. Malloy has proposed a two-year, $40.6 billion state budget. Highlights of the tax and spending plan.
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MUNICIPAL AID
The governor’s budget would keep state aid to municipalities flat at about $5 billion in the 2017-18 and 2018-19 fiscal years, but would shift millions of dollars away from wealthier towns to poorer cities.
State aid next year would increase $47 million for Hartford, $43 million for Waterbury, $28 million for New Britain, $19 million for Bridgeport and $17 million for New Haven.
Aid next year would decrease $13 million for Groton, $11 million for Milford, $8 million for Glastonbury, Fairfield and West Hartford, and $7 million for Greenwich.
Malloy also is proposing cities and towns pay $400 million of the $1.2 billion annual cost of teacher pensions now completely shouldered by the state.
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TAXES AND FEES
Malloy is calling for increasing taxes by $200 million next year. About half of the increase comes from elimination of the $200 property tax credit taken by low- and middle-class families on state income tax returns.
Another $25 million would come from decreasing the earned income tax credit used by low-income families. About $60 million would come from increasing taxes on tobacco products; that includes raising the cigarette tax from $3.90 to $4.35 a pack.
Malloy also wants to increase fees for many items. The five-year pistol permit fee would jump from $140 to $370. Land record filing fees would increase from $3 to $10, and cremation certificate fees would rise from $150 to $200.
The governor also wants to increase bottle deposits from 5 cents to 10 cents.
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CAPITAL PROJECTS
The budget also includes $3.6 billion worth of construction and renovation projects in the next fiscal year and $4 billion the following year. The projects are funded by state borrowing.
The spending includes $491 million for the University of Connecticut, $385 million for the Connecticut State University system, $1.2 billion for local school construction and $130 million for local road and bridge programs.
Malloy also proposes spending $125 million for renovations to the XL Center arena in Hartford, where the UConn basketball teams and Hartford Wolf Pack minor league hockey team play. Malloy and Hartford Mayor Luke Bronin are trying to lure the New York Islanders of the National Hockey League to the capital city.
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