May 2, 2023

Rep. Callahan, House Republicans Unveil Biennial Budget Proposal

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2024-2025 plan provides more tax relief than Governor and Democrats, invests in key areas including education and nonprofit social safety net providers

HARTFORD—State Representative Patrick Callahan (R-New Fairfield) joined his House Republican colleagues on Tuesday to release a balanced budget proposal that provides more than $1 billion in broad-based tax relief to Connecticut residents while also making historic investments in education and providing more funding for nonprofit providers.

“We champion a number of priorities with this budget proposal, such as helping the middle-class through tax relief, helping businesses by eliminating the Highway Use Tax, and helping the nonprofits by increasing their funding by 2.5 percent. There are other strategic spending proposals, including a 50-percent increase for rates in assigned counsel to alleviate court backlogs, expanded funding for all fire training schools, and fully funding special education costs,” said Callahan.

The two-year $51.9 billion plan from House Republicans constrains overall spending growth in the general fund to less than zero percent in FY24 and 2.5 percent in FY25. The Republican plan offers $1.16 billion in tax relief through a variety of means, including a retroactive structural middle-class income tax cut with additional relief for seniors and, for the first time, a state child tax deduction for everyone at a rate of $2,000 per child.

The Republican budget meets the challenge of funding core government services, and in several cases spends more in key areas than Democrats. That includes a $290 million investment in local education funding that provides fully funded special education grants (more than $50 million) for the first time. The budget matches Democrat-level funding for colleges and universities but also installs new reporting requirements for both the UConn and CSCU systems. The plan also provides a 2.5 percent increase for nonprofit service providers.

Summary of Republican Budget & Policy Points
(Download full documentation at taxreliefbudget.com)

Tax Relief for Connecticut Residents
($200 million more than Governor or legislative Democrats)

Adopt but enhance Governor’s income tax cut proposal by using one-time $300 million of FY23 surplus to make it retroactive to January 2023. Removes benefit from top 1 percent earners
Create first-ever state child tax deduction for everyone, $2,000 deduction per child
Help job creators by restoring pass-through entity tax credit to 93.01 percent
Eliminate Highway Use Tax on trucks
Establish phase-out threshold for state tax on retirement income
Eliminates sales tax on children’s clothing under $100

Supporting Students, Parents, Educators

Invests $290 million in education, including $214 million to implement components of H.B. 5003, $20 million to hold harmless towns that would have seen an ECS decrease; fully funds special education grants ($50 million); funds Danbury charter school ($4 million)
Expands support for Care4Kids program ($60 million)
Increases minority teacher scholarship funding by $1 million
Meets Democrats’ funding level on higher education, but requires oversight
Increase parent representation on State BOE and Parent Cabinet

General Government

Increases funding for nonprofit social service providers by 2.5 percent ($100 million)
Fully funds effort to eliminate DSS waitlist
Increases investment in gun violence prevention programs
Increases current services funding for rail and bus
Eliminates proposed messaging program for inmates, saves taxpayers $3.5 million
Enhanced 2-1-1 crisis services for housing and homelessness ($2.4 million)
Reinstate Transportation Strategy Board to review investments and recommend savings
Increases pay for assigned counsel in public defender cases ($23 million)
Expands GPS monitoring for domestic violence offenders ($6 million)
Increases funding to Women’s Business Development Council to almost $1 million
Invests in firefighter training, creates $1 million support fund for families of fallen officers
Doubles what Democrats provided for senior meals funding to $3 million

Greater detail at: taxreliefbudget.com