HARTFORD – House Republicans today issued their revised no-tax increase budget for 2018-19 that eliminates the projected $5 billion budget deficit, increases school funding for all towns, reduces the corporate surcharge and mitigates municipal aid losses by reallocating funds.
“This is probably the most challenging budget to put together because revenue projections collapsed in recent weeks. Our goal was to come up with a plan that does not increase any taxes and mitigates the revenue losses to towns and cities and we did just that,’’ House Republican Leader Themis Klarides said.
Every town will see an increase in school funding over current levels. House Republicans relied on significant state employee union concessions and reduced state spending to balance the budget. They also included a wage freeze for state employees, but no layoffs.
Now the hard part comes as Republicans join Democrats and Gov. Malloy at the negotiating table to come up with a final budget plan that can pass both the House and Senate, Klarides said.
“We are hopeful of meeting the June 7 deadline for the end of the legislative session,“ Klarides said.
The Governor’s revised budget proposal includes hundreds of millions in additional cuts in local aid that Republicans rejected. The House GOP also turned down a proposal to require towns and cities to pay $400 million in teacher pensions.
Republicans did accept Malloy’s plan to eliminate GAAP funding to save $57 million a year and eliminated the Municipal Revenue Sharing Account, MRSA, and redirected the money to help balance the budget.
“This budget makes it clear that House Republicans do not support tax increases that have not worked in the past,’’ Klarides said. “That failed policy has cost Connecticut jobs and has sent people and employers to the exits.’’