Democrats Call For Sales Tax Increase; Possible Vote July 18
In addition, cities and towns would have the local option to approve an additional 1 percent tax on the sale of food and drink at restaurants and bars, and the additional revenue would be given back to the municipalities.
A vote on the two-year,
While the House is prepared to vote, the state
The announcement means the
"There are probably more holes in this thing than Swiss cheese," Malloy told reporters. "Let's see if they can pass it. ... Why was this kabuki dance done about trying to get something done before
Regarding the legislature's failure to pass a budget before the end of the fiscal year, Malloy said, "I've had enough."
The new proposal also came on a day when insurance giant Aetna urged lawmakers to come to a budget agreement when it was moving its corporate headquarters from
The
"We're good to go, we know where the parties are. Let's get this thing done pretty quickly," said House Majority Leader
But like Malloy, House Republican leader
"I do understand that there are tax increases in there ... that we certainly cannot support," Klarides said. "Not only is every tax policy, all of our regulation, and all of our anti-business bills pushing business out of the state, now we are going to try and stop people from going to those businesses by taxing them all."
The House Democratic plan also supports restoring the popular
The proposal also calls for increasing pension contributions by teachers, an issue prompted by Malloy's request for the towns to contribute
In the short-term, the House refused to vote Thursday on Malloy's so-called "mini budget" that would have funded state operations for the next 90 days.
With no action by the legislature, the state is now expected to start the new fiscal year on Saturday without a budget. That means Malloy's executive order would lead to major cuts for municipalities, hospitals, social services, and at least 400 summer jobs for teenagers in the
Ritter said the new budget proposal contains a number of provisions that could help the city of
But the direct impact on the state's 169 communities was unclear because the town-by-town totals for state funding were not released Thursday. The nonpartisan, professional staffs that analyze the state budget proposals had not had enough time to complete their fiscal analysis, which will be available in the coming days.
If
The overall goal of the Democratic budget proposal is to wean municipalities off a funding system that is based on property taxes, Ritter said.
"One of my goals as a legislator has always been to let towns have more flexibility so their reliance on property tax isn't as strong," he said. "We are stuck in a 1960s model of taxation. We still have towns poaching Costcos from each other."
House Speaker
"We think this is a great starting point," he said.
Many of the ideas, including a proposal that would allow municipalities to assess a local sales tax on food and beverages and a provision that would provide incentives to run certain local programs on a regional basis, were drawn from the
Raising the sales tax from 6.35 percent to 6.99 percent will "save the municipalities from some really devastating cuts," Aresimowicz said.
CCM's executive director,
"From level funding of municipal aid and line-item veto authority over non-curriculum education expenditures, to a new additional revenue option for towns from a portion of the sales tax and changes in collective bargaining, these budget proposals would both protect municipal funding from the state and provide real avenues to cost containment for local governments," he said.
Unlike the fractious House Democratic caucus, which is riven with ideological divisions between liberals and moderates,
Aresimowicz said the biggest difference between the budget proposals put forth by
The House Democratic plan also includes a Republican priority: The Passport to Parks program, which would raise passenger vehicle registration fees to fund state parks, which have been hit hard by budget cuts in recent years. Under the program, an extra fee would be tacked on to vehicles registered in
Aresimowicz said he would have been interested in potentially passing a mini-budget that would lay out a spending plan through the first quarter of the year, but "not the version of the mini-budget Malloy gave us."
He said he would favor "a pared-down" version that has not yet been created. But Malloy has said that the legislature and the executive branch are running out of time to negotiate a new version of the mini-budget.
"That's the problem with dropping plans and not having negotiations or discussions and saying, 'Here, do this,'" Aresimowicz said. "We're a deliberative body. We're an equal branch of government. As much as I respect him and his process, he should respect ours and our process also."
Malloy's chief spokeswoman,
"We're not interested in process. We're interested in action and outcomes," she said. "The state is watching -- it's time for a vote."
___
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