CT House Republicans Unveil “Pathway to Affordability” Budget Plan

HARTFORD—State Representative Bill Pizzuto (R-71) is supporting the House Republicans budget adjustment plan for the second year of the state budget. This is a series of policies aimed at making Connecticut more affordable, lowering household costs, easing property tax pressures, and addressing the school funding crisis facing communities across the state.

The $27.9 billion plan, called “Pathway to Affordability,” is balanced, provides more than $400 million in tax relief, falls $167 million under the state spending cap, and spends less than the governor’s budget proposal and the product advanced by Appropriations Committee Democrats.

“Connecticut has become unaffordable for so many residents. One of the biggest burdens is the property tax. By focusing our plan on providing relief to municipalities to cover rising education costs, those cities and towns in turn can provide property tax relief locally," said Rep. Pizzuto.

School Taxpayer Relief & Affordability Plan (STRAP)

The centerpiece of the House Republican proposal is the School Taxpayer Relief and Affordability Plan, or STRAP—a $365 million investment distributed to every city and town in Connecticut to help offset surging education costs and reduce the burden on local property taxpayers.

If adopted, this plan would add $407,937 in aid to Middlebury and $29.8 Million for Waterbury.

The “Pathway to Affordability” plan includes a broad range of tax and fee relief:

• Increase the state’s maximum property tax credit to $650 and expand income eligibility, extending relief to 800,000 filers
• Curb healthcare costs by reducing a state levy on insurance companies ($20 million) that has been passed on to consumers in their monthly premiums
• Eliminate income tax on all Social Security benefits
• Eliminate the sales tax on children’s clothing
• Enact a “no tax on tips” exemption
• Reduce the sales tax on vehicles priced between $50,000 and $75,000 from 7.75% to 6.35%--because the cost of vehicles has risen sharply in recent years, and what once seemed like a luxury price point now covers everyday family minivans and work trucks
• Eliminate fees on certain occupational licenses
• Remove the “Passport to Parks” fee from motor vehicle registrations
• Ease local tax burden by providing $2.5 million to help municipalities cover early voting costs

The plan is funded through new revenue and spending discipline, including:

• Recover $340 million by challenging New York’s “convenience of employer” rule, which forces roughly 80,000 Connecticut residents who work remotely for New York employers and pay income taxes to New York at rates higher (10.9% top rate) than they would pay here at home (6.99% top rate). The plan includes $1 million to help these workers file legal challenges against New York’s policy.
• Save $153 million by budgeting state employee positions based on realistic hiring trends rather than funding all vacancies at once
• Save $61 million by eliminating state-funded health insurance for undocumented immigrants, who retain access to care through Federally Qualified Health Centers
• Removes 25% of double-funding of ECS grants to municipalities, saving $29 million
• Save $12 million by reducing legislative earmarks
• Save $3.5 million by eliminating inmate text messaging

Among our targeted investments in public safety and human services:

• $3.2 million to expand the CRISIS program helping police respond to and de-escalate situations involving individuals experiencing mental health or substance abuse crises
• $1.5 million for domestic violence shelters
• Provides funding to hire investigators for Medicaid Fraud Control
• $2.4 million to increase provider rates for Birth-to-Three child development services
• Creates an income tax deduction (up to $2k) for volunteer firefighter and EMS personnel