From CT News Junkie:
The Democrat-controlled Appropriations and Finance Committees proposed a two-year budget Thursday that includes tax increases, borrowing, and spending cuts.
At a press conference this morning the Democratic co-chairmen of the two budget writing committees said their budget spends about $164 million less than Republican Gov. M. Jodi Rell’s $38.4 billion two-year proposal. It also cuts about 25 percent of managerial positions at the Department of Children and Families and reduces the amount of municipal aid cities and towns receive through the Mashantucket-Pequot grant by about $49 million over two years.
In addition, Democrats said they want to borrow up to $500 million this year to help the state with the current fiscal year 2009 deficit and use the $1.4 billion rainy day fund for the deficits in 2010 and 2011. On the revenue side, the Democrats will try again to pass a “progressive” income tax starting at 6 percent for couples making $250,000 a year. The percentage jumps to 7 percent for those making over $500,000, 7.5 percent for those making over $750,000, and 7.95 percent for those making more than $1 million per year. Currently, all of those income brackets pay 5 percent.
The plan also includes a lower phase-out of the property tax credit and a three-year increase in the corporate tax. The income tax would remain lower than New York’s income tax, with its recent agreed to changes.
Again according to CT News Junkie, “The budget pie chart presented by the Democrats Thursday said 27 percent of their budget is spending reductions, 37 percent tax increases, 17 percent federal stimulus dollars, and 19 percent from the rainy day fund.”
The J-I notes:
And despite tackling a fiscal hole far worse than the one Rell addressed, top Democrats said the plan they would unveil today would spend less than the $38.4 billion in total appropriations Rell has recommended for the 2009-10 and 2010-11 fiscal years.
Williams, who last week called the Republican governor “dishonest,” has clashed with Rell since when she offered a budget plan on Feb. 4 that closed a $6 billion built-in deficit for the next two fiscal years.
Nonpartisan legislative analysts reported at the same time that the problem was closer to $9 billion based on current spending and taxation policies, and both Rell and her budget chief had referred to a shortfall of about $8 billion prior to her budget presentation.