Finally a State Budget is Passed
Will the Governor sign it?
No Sales Tax Increase for Retailers
Links to Live By
- We are pleased to report in this week’s Friday Facts that Connecticut General Assembly has finally adopted a State Budget ending the longest running budget drama in State history.
- As we have reported in previous FF, attempts by Majority Democrats in both the House of Representatives and the State Senate to adopt a budget all failed and a Republican lead effort was vetoed by Governor Malloy.
- That forced, finally, both parties’ leaders to sit in a room and work out a compromise to put a budget together that could pass both chambers.
- The State Senate took the first step in passing that budget and do so by a 33 -3 margin at about 2:30 am Thursday morning. The House then took up the budget at 10:00 am Thursday and similar to the Senate, the House passed it 126 – 23, again by a veto proof margin.
- We mention veto proof, because discussions with Legislative Leaders and the Governor had seriously broken down and Legislative Leaders decided to go ahead without the Governor.
Will the Governor sign it?
- So, as we go to print with this FF, there is no word from the Governor’s office if he will sign the budget and end the drama, or if he digs in and vetoes it.
- Legislative Leaders have told us they are hopeful the Governor will sign the budget especially given that they worked into the budget some of the Governor’s priority items. Things like reducing cuts to UConn and providing funds for the City of Hartford and a tax increase on state hospitals that will actually result in MORE Federal dollars coming CT’s way.
- We will have to keep a close eye on what the Governor does, but our guess is that he signs the bill and the longest running budget drama in the State’s history will end.
No Sales Tax Increase for Retailers
- For CRMA, we are very pleased in a number of developments with this budget. First and foremost there was no sales tax increase OF ANY KIND included in the budget.
- No fee on plastic bags and no sugar or soda tax. In addition, the Legislature left in place the SALES TAX HOLIDAY.
- There was also NO REAL-TIME SALES TAX COLLECTION LANGUAGE.
- Now, this was a 600 page bill so we haven’t had time to go thru it line by line, but here are some highlights that we wanted to share:
- No income tax rate increases, but there was a .45 cent increase in the cigarette tax and increases in snuff and other tobacco products
- .25 increase in Ride-sharing services
- A new $10 increase in motor vehicle registration fees to support state parks and other recreational sites for a new program called “Passport’s to Park”
- A new tax on fantasy sports betting, beginning in 2018 – 2019
- Our friends at the CT Mirror, particularly Keith Phaneuf does a great job of going thru other highlights of the budget. You can go here to read that story.
- There are a lot of other issues that were wrapped up in this budget so we know that we need to report back to you with more details and we will.
- But for now we are very pleased that our efforts to hold the line on sales tax increase and to stop any real time sales tax implementation worked. We thank all of you who made phone calls or sent emails to Legislators.
Links to Live By
- There are some great links to follow that will give you a good flavor of the reaction of the adopted budget:
- Chris Keating at the Hartford Courant also does a great job in reporting on the budget. Check out his story by going here.
- House Majority Leader Matt Ritter urged the Governor and others to support this budget during the House debate. Read more here.
- House Minority Leader Themis Klarides penned an op-ed that appeared in the Hartford Courant outlining what she feels her caucus achieved with this budget.
- We could not have a links to live by and not include a CT News Junkie Story by our friend Christine Stuart. She does her usual great job. You can go here to see that story.