Hartford – Today Connecticut Senate and House Republicans joined together to release a revised two-year state budget proposal with no new taxes that would put a stop to the governor’s executive order, restore funding for education and core social services, and provide stability for towns and cities.

The revised budget includes no tax increases and rejects the governor’s proposal to shift teacher pension costs onto towns and cities that would further burden municipalities and lead to increased property taxes. The Republican budget proposal combines elements of the Senate and House Republicans’ multiple prior budget proposals, feedback from Democrats, and factors in the legislature’s passage of the state employee labor concessions deal that is now law. The original Republican budget was first released in April and updated throughout the year as the state’s financial situation changed.

“Connecticut is at a crossroads and we are facing one of the greatest financial challenges our state has ever seen. In this time of hardship, it is imperative that we send a clear message to the people of Connecticut that we are moving our state in a new direction. We cannot do that with a budget that increases taxes by nearly $1 billion and continues the same policies that have failed our state in the past. We have to rebuild people’s confidence in Connecticut by sending a strong message that we are pursuing change,” said Senate Republican President Pro Tempore Len Fasano (R-North Haven) and House Republican Leader Themis Klarides (R-Derby). “Connecticut Republicans are once again offering a complete, balanced budget proposal that does exactly that. We are offering structural changes to achieve savings in the long term. We are prioritizing funding for the core functions of government, education, transportation and services for individuals with disabilities. We are fairly funding education with a real formula that factors in population, poverty, and need. We are creating stability and predictability for our cities and towns. And we are doing all this by making strategic reductions in the size of government, not by increasing revenue with new taxes on the backs of working and middle class families or our state’s healthcare providers.”

“Republicans have once again demonstrated that the state’s multibillion dollar deficit, caused by runaway spending and high taxes that stymied economic growth, can be eliminated without raising taxes or gutting social services for the needy. While the SEBAC deal further tied the hands of lawmakers and took many long-term structural changes off the table, there are still steps we can take today to rein in costs, reduce future spending, and create an environment that promotes economic growth and opportunity for all people. That is what this budget proposal seeks to do. Budgeting is about priorities and the Republican budget prioritizes the core functions of government, makes tough choices to reduce spending, and avoids increasing taxes – a strategy that has only created bigger deficits over the last six years.”

“We believe it is in our state’s best interest for lawmakers to come together and pass a bipartisan budget, which is why we have worked for months to try to negotiate a deal with Democrats that truly moves our state forward. But Democrat legislators made it clear they would rather work with Gov. Malloy than their Republican colleagues and pass a budget that relies on the same policies that have failed our state in the past,” the  Republican leaders added.

“Republicans want a bipartisan solution, but we cannot vote for something that will only bring us right back into deficit in a few months time. Unfortunately that is the path Democrats are choosing to pursue. They have rejected our proposals to implement long needed structural changes such as an enforceable state spending cap and effective bond cap. Nevertheless it is our responsibility to continue working until the very end and pushing for the policies that we were elected to fight for. That’s why we are yet again offering our ideas in a complete budget and a better path for the people of our state that we hope Democrat rank and file lawmakers will see the value in.”

The budget proposal released by Republicans today includes the following:

No New Taxes

The Republican budget contains no new taxes. It does not increase or expand the sales tax, hospital tax or income tax. It also rejects the governor’s proposal to shift teacher pension costs onto municipalities as such a policy change would likely result in property tax increases.

Reduces Taxes

The Republican budget enacts two policies that will reduce taxes for retirees by phasing in a tax exemption for Social Security and pension income for middle income families. In addition, the Republican budget also restores the entire $200 property tax credit for all qualifying families and individuals. Under Governor Malloy’s tenure this tax credit has been reduced from $500 and we believe that property owners deserve a break on their taxes.

Increases Education Funding

The Republican budget rejects the governor’s devastating education cuts contained in his budget proposal and executive order entirely. It instead includes a fully revised Education Cost Sharing Formula that takes into account factors regarding CCJEF and Meskill court decisions, enrollment, poverty, wealth and number of English Language Learners, among other factors. This budget dedicates $33.6 million more to education in FY 2018 and $136.6 million more in FY 2019 and phases in a new formula over 10 years. It also establishes a council to analyze and make changes to the new formula within the next year if deemed necessary. In 2018 all cities and towns’ base ECS grants will either be held harmless or gain more funding.

Municipal Support and Mandate Relief

This budget provides predictable municipal aid so that towns and cities know what they can count on from the state. This plan rejects the Governor’s proposal to force towns and cities to pay hundreds of millions in teacher pension costs. It implements significant mandate relief for cities and towns to help municipalities achieve efficiencies, foster cooperation between school boards and local government, and pass savings on to taxpayers. Instead of drastic and deep cuts to core municipal aid that towns rely upon each and every year such as education funding, and instead of adding new expenses, this budget would eliminate the unsustainable MRSA diversion, and stabilize funding so that towns know what they can count on each year. This comprehensive approach will establish predictable and sustainable aid for small towns and large cities and take into account the challenges faced in all communities.

Funds Core Social Services

This revised budget maintains Republican proposals to restore funding for core social services and programs that benefit people most in need. It fully funds day and employment services for individuals with intellectual and developmental disabilities, reopens Care4Kids, protects funding for SAGA that supports disabled residents who are unable to work, funds school based health clinics and family resource centers, restores funding for mental health services among many other programs.

Prioritizes Transportation

The Republican budget recognizes the importance of a safe, modern transportation system to public safety and economic growth throughout our state. Therefore, this budget prioritizes the state’s transportation needs and stabilizes funding without tolls or new taxes. It implements the Republican “Prioritize Progress” transportation funding plan and stabilizes the state’s Special Transportation Plan by dedicating transportation-related revenues to fund transportation needs and protects monies in the state’s Special Transportation Fund from being diverted for other uses.

Supports Seniors

The Republican budget lowers taxes for retirees by immediately eliminating the tax on social security and phasing in an elimination of taxation of pension income for single filers with an AGI below $75,000 and joint filers below $100,000. It also helps seniors age in place by restoring funding for programs such as Meals on Wheels, the personal needs allowance, non ADA dial a ride, and the CT Home Care Program.

Employment and Day Opportunities for the Intellectually Disabled

Our budget fully funds employment and day opportunities for new high school graduates over the biennium, nor does the Republican Budget carry forward reductions imposed by Governor Malloy to employment and day opportunities services for the intellectually disabled. 

Funds State Parks & Tourism

Acknowledging the multiplier effect that tourism has on our economy, the Republican budget proposes to transfer 1.5% of the current hotel occupancy tax to a new Marketing, Culture and Tourism account. This is not a new tax as Democrats have proposed. Rather, it dedicates a portion of the current tax for its intended purpose to boost tourism funding. This budget also implements the Passports to Parks program that has garnered bipartisan support in the legislature.

Reduces Size of Government

The Republican budget proposal implements overtime savings of 10 percent, a hiring freeze on non-24-hour non-union positions, and makes cuts to the legislature such as reducing the number of legislative committees. The budget also makes targeted spending cuts, 10 percent reductions to certain agency accounts, and rolls forward lapses made last year except for cuts to core services such as grants for mental health and substance abuse and youth service bureau funding.

Includes Structural Changes

In addition to balancing the budget over the next two years, this budget includes policy changes that roll out into future years to achieve significant savings. Changes include items such as a spending cap, bonding cap, municipal mandate relief, and other policy changes for long term savings. The budget also implements pension reform beginning after the SEBAC deal ends in 2027 to achieve $270 million in savings over the biennium from the following changes to state employee benefits: requiring workers to pay the national average towards their retirement benefit, eliminating COLAs until the fund balance of the state employee retirement system is deemed healthy by national standards, eliminating overtime from calculation of final average salary, ceasing the current practice which allows higher paid employees to receive a larger portion of their final average salary as lower pain employees, commonly referred to as a break point.

• FY 2018/2019 GOP Budget: Summary
• Final Republican Budget
• Revisions Post-SEBAC Approval, September 2017
• Structural Changes and Municipal Mandate Relief
• FY2018/2019 GOP Budget – Updated Municipal Runs – September 2017

Give Realtors a Connecticut They Can Sell

 By Sen. Tony Hwang

As your State Senator and a Connecticut Realtor, I want you to know that Democratic state legislators are considering accepting Governor Malloy’s plan to significantly increase taxes on real estate sellers (conveyance taxes).

Governor Malloy’s latest proposed budget includes an increase to the conveyance tax for the sale of real estate. When you sell your home, the state taxes you on the sale price of the property. Currently, for all sales $800,000 or less, sellers are charged a .75% tax on the price. For all sales over $800,000, sellers pay .75% on the first $800,000 and then 1.25% on the overage.  The Governor’s proposed budget would increase the rates to 1% and 2% respectively.

Democratic legislators need to remember the importance of the housing market to the overall state economy.  This new tax will make it even harder and more costly for people to buy or sell a home. The fragile economy will not recover until the housing market and valuation recovers. As legislators and policymakers, we should be making it easier for families to buy a home, not harder and more expensive.

By increasing the sales tax on real estate, state Democrats would effectively penalize homeowners and landlords for selling their property. This is another example of why, even though we live in a wonderful state, people and companies are leaving. Just a day ago, an innovative biotechnology company that was given major state economic incentives decided Connecticut was not the proper ecosystem for them.  The company plans to move to Boston, just as GE did.

Another tax is not the way to entice corporations to move here and stimulate our economy.  It sends the wrong message.

In Fairfield County, the impact is especially devastating as there will be expanded tax increases for the portion of the home sale over $800,000.  This tax would be especially burdensome to our residents due to our highly competitive property values. There are many benefits to the community when real estate sells. Jobs are created.  Banks, home improvement contractors and furniture stores all benefit from a new home sale.  This additional tax would have a negative impact on all of these businesses and the Connecticut economy.
So please, let your voices be heard.  Get active.  Get loud.

Now is the time.

Let the Governor, the Democratic leadership and your state representatives know that taxing home sales will only further damage Connecticut’s already fragile economy.

*Sen. Hwang represents Easton, Fairfield, Newtown, Weston and Westport.  He serves as Co-Chair of the Connecticut General Assembly’s Housing Committee. He can be reached at Tony.Hwang@cga.ct.gov or 800-842-1421. On the web:www.SenatorHwang.com.

Republicans have unveiled a detailed solution to move Connecticut in a new, sustainable, predictable direction.

Our Republican proposal contains no new taxes:

• No real estate conveyance tax hike
• No sales tax hike
• No tax hike on restaurants
• No tax hike on hospitals
• No property tax hikes
• No income tax hikes
• No tolls or mileage taxes
• No home heating oil and propane energy taxes.

Our plan:

• Reduces taxes for retirees
• Restores funding for local education
• Restores funding for core social services for our neediest residents
• Provides property tax and educational funding stability for towns and cities
• Makes structural budgetary changes, such as an enforceable state spending cap, requiring voting on state labor contracts and an effective bond cap
• Prioritizes progress to upgrade and innovate our transportation infrastructure.

All of this will generate a predictable, sustainable and transparent ecosystem where Connecticut businesses can thrive and grow.

Time is of the essence to protect our communities and our most vulnerable and at-risk residents!

The line-by-line details can be found here:

http://ctsenaterepublicans.com/2017/09/our-ct-republican-revised-no-tax-increase-budget/#.WbhMi4KovL8

“Stay Active and Involved”

WESTON – The local delegation to the Connecticut General Assembly of State Representative Adam Dunsby (R-135), State Senator Toni Boucher (R-26), and State Senator Tony Hwang (R-27) invited constituents from Easton, Weston, and surrounding communities to the Weston Library on Wednesday evening to offer an update on a state budget situation that is still not resolved more than two months into the new fiscal year.  Wednesday’s event marked the second town hall forum since the conclusion of regular session in June that the three legislators hosted together.

The legislators explained how the situation had changed since their last budget update, noting the significance of the General Assembly last month passing the SEBAC labor agreement that contained certain structural reforms while extending the current agreement for another ten years.  Each legislator agreed that this union deal “did not go far enough” to address Connecticut’s substantial budget deficit and “took many good options off the table” for future legislatures and governors.

Local residents expressed their concerns about how the budget crisis would impact their families and businesses.  Most prominent among local concerns included the possibility of the state eliminating local education funding and how municipalities could cope with footing the bill for teacher pension costs.

As current First Selectman of Easton, Rep. Dunsby gave a blunt assessment of the governor’s budget proposal and the turmoil it would place on many towns.  He also criticized the plan put forth by House Democrats that proposed raising the sales tax and other taxes and fees because “these kinds of taxes specifically target middle and lower income earners, and tax increases have failed year after year.”

“I am grateful for the opportunity to join my Senate colleagues and listen to how these pressing issues we deal with every day affect the lives of our friends and neighbors in this community; it is important for me to spend as much time in my district as possible,” said Rep. Dunsby.  “Majority leadership needs to understand the direct and immediate impact their revenue grabs have on families and businesses here.  This feedback will help shape my strategies in crafting an alternative budget that will benefit Connecticut taxpayers in every income bracket and convince my colleagues in both parties to do the same.”

“We continue to listen to and stay in close touch with Easton and Weston taxpayers,” said Sen. Hwang.  “Our collective priority is to protect Easton and Weston property taxpayers and to preserve state funding for the towns. We feel that these regular updates on state issues make us better, more responsive legislators.  We will continue to work tirelessly on behalf of all residents in Easton and Weston, and we encourage area taxpayers to stay active, involved and up-to-date on what’s happening in Hartford.  Sign up for my social media updates by sending me an email at Tony.Hwang@cga.ct.gov or by visiting www.SenatorHwang.com. ”

“I’ve been to several town halls throughout my district and heard from so many of my constituents.  What they are telling me is that they are scared and angry.  They are concerned about the drastic cuts Governor Malloy has proposed making to education funding and to towns,” said Sen. Boucher, adding that the legislators talked at length about the legislative process and how budgets get passed. She said that although the Senate is tied and Democrats hold a slim majority in the House, Republicans are still the minority party.

“The majority party that controls the process, the budget, and the votes will not bring our budget alternatives to the floor for a vote and they can’t seem to get the votes they need from their own side of the aisle.  Too bad they forced a vote on a state labor agreement that did not make the changes needed to solve the $5 billion state budget gap.  That agreement has now stalled the budget process,” she said. “Connecticut taxpayers are outraged that we have started the school year without a state budget. They want these issues fixed in a responsible way and they want it fixed now!”

The legislators urged those who could not attend the meeting or did not have a chance to ask a question to contact them at their offices or by email at adam.dunsby@housegop.ct.gov, toni.boucher@cga.ct.gov, or tony.hwang@cga.ct.gov.

State Representative Adam Dunsby represents the 135^th General Assembly district communities of Easton, Redding, and Weston.

 State Sen. Toni Boucher represents the 26^th Senate district communities of Bethel, New Canaan, Redding, Ridgefield, Weston, Westport and Wilton.

State Sen. Tony Hwang represents the 27^th Senate district communities of Easton, Fairfield, Newtown, Weston, and Westport.

Sen. Tony Hwang (right) on June 3 with Aiti Rai (left) at the State Capitol. Rai was a Nepalese refugee for the first 15 years of her life. Her family escaped from political persecution. Rai told Sen. Hwang how she dreamed of a better life, and in the United States, she had the chance to expand her dreams. She earned her high school diploma, becoming the salutatorian at Hartford Public High School’s Law and Government Academy. In 2015, Rai realized the dream of American citizenship. She served as a State Capitol intern in the Connecticut General Assembly during the 2017 legislative session and is now a Trinity College undergraduate.

Sen. Tony Hwang today issued the following statement regarding the Deferred Action for Childhood Arrivals (DACA) program.

“Compassion.  Open-heartedness.  Kindness. Those are the things we need in America,” Sen. Hwang said.  “We also need policies which bring about certainty and predictability for people.  We are a nation of immigrants.  A melting pot.  We need Congress to come up with a common sense solution which does not put children at risk.  This is an opportunity which Congress must seize.  Fix the problem.  Do your jobs.  Work together.  Get it done.”

*Sen. Hwang represents Easton, Fairfield, Newtown, Weston and Westport.  He can be reached at Tony.Hwang@cga.ct.gov or 800-842-1421. On the web: www.SenatorHwang.com.