Budget Update

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Dear Neighbors,

Starting October 1st, 140 new laws went into effect, but a state budget is still not in place after the Governor vetoed a bipartisan budget late last week. The state budget is now still being carried out by executive order by the Governor, which means our communities will suffer from his drastic education cuts.

Under Governor Malloy’s executive order, 85 communities will lose their state education funding and 54 communities will see their aid reduced. For our towns, East Windsor will lose over $30,000 and Ellington would lose over $7 million in education funding, along with additional municipal aid cuts.

We still have a chance to override the Governor’s veto and restore a bipartisan balanced budget plan before the Governor’s planned cuts impact our school districts. The bipartisan budget I supported makes real structural changes and restores education funding to East Windsor and Ellington.

Highlights of the bipartisan budget include:

• No increase or expansion of the sales tax.
• No income tax increase, cell phone tax, or secondary home tax, while maintaining the property tax credit at its current levels.
• Eliminates Social Security income tax and phases out tax on pension income for middle-class families.
• Rejects the Governor’s shift of teachers’ pension cost onto municipalities.
• Fully funds day and employment services for individuals with intellectual and developmental disabilities.
• Changes including a spending cap, bonding cap, and municipal mandate relief package.

The bipartisan budget passed also includes a plan with funding to help homeowners living with a crumbling foundation in our community. It establishes a Crumbling Foundations Assistance Fund (CAFA), which will be overseen by an Executive Administrator in the executive branch. The administrator of the CAFA will provide grants to homeowners based on a plan approved by legislative committees, allowing for the public to weigh in on any grant eligibility requirements or how the grants would be distributed. Unlike other proposals, this plan did not include a surcharge on all homeowners insurance policies. Instead, the bipartisan budget approved more than $40 million in funding to directly help these homeowners over the next two years.

Democratic leadership intends to call us into session tomorrow to take an up or down vote to override the Governor’s veto. If the vote takes place, I intend to vote to override the Governor’s veto as the approved budget restores funding for East Windsor and Ellington, provides tax reform to help middle-class families in our district, and funds essential services to our state’s most in need without raising taxes on families and businesses.

I will continue to keep you updated about the budget. As always, if you have any questions or concerns, please contact me at Christopher.Davis@housegop.ct.gov or 860-240-8700.

Sincerely,

State Rep. Christopher Davis