Connecticut’s Republican lawmakers presented on Thursday their version of the state’s budget, which has little chance of being passed.
Republicans said their proposal eliminates “gimmicks” that hide the true cost of the majority-Democrats’ budget. Their plan calls for saving $120 million by cutting the state Earned Income Tax Credit, which boosts tax refunds for low-income residents. In exchange, the budget proposal would restore a sales-tax exemption for non-prescription drugs and certain clothing, and would create a partial tax exemption for pension income.
Republicans said Gov. Dannel P. Malloy’s budget proposal contains more than $827 million in gimmicks, such as one-time revenue and delayed payments, over two years. That includes Malloy’s $55 tax rebate, which the Republicans would eliminate.
“If the proposed Democratic budget is adopted, it will lead to more spending we can’t afford, less money for towns and cities and bigger deficits down the road that will require even more tax increases,” House Republican Leader Larry Cafero said in a statement.
In response, Office of Policy and Management Secretary Benjamin Barnes called the Republican proposal “a political document that’s heavy on rhetoric, but devoid of any actual detail.” He said it contains nearly $55 million in “phantom spending cuts” and called eliminating the EITC “troubling.”
The state’s Office of Fiscal Analysis said the Republican proposal would reduce by $34 million a projected fiscal year 2016 deficit of $939.1 million. Meanwhile, OFA said Malloy’s budget would increase the fiscal 2016 deficit by $130.3 million.
