Malloy’s budget
Bottom line
$19.7 billion in FY 2016, $20.3 billion in FY 2017
Spending growth: 3.3 percent in FY 2016, 3.1 percent in FY 2017
The fine print
- This budget exceeds the constitutional spending cap by $55 million in the next fiscal year.
- It also relies on $325 million in borrowing to cover payments on other debt, drawing warnings from the state treasurer that it could harm the state’s reputation with Wall Street investors.
Republicans’ budget
Bottom line
$19.5 billion in FY 2016, $20.0 billion in FY 2017 Spending growth: 2.3 percent in FY 2016, 2.8 percent in FY 2017
The fine print
- This budget falls below the constitutional spending cap by $218 million in the next fiscal year
- It relies almost $630 million in savings from a wage freeze and other concessions while also tightening overtime costs. State employee unions already have indicated they aren’t interested in providing a third round of concessions since 2009.
Appropriations’ budget
Bottom line
$19.9 billion in FY 2016, $20.6 billion in FY 2017 Spending growth: 4.6 percent in FY 2016, 3.3 percent in FY 2017
The fine print
- This budget relies on a controversial new interpretation of the spending cap to exempt contributions to pensions and other retirement savings plans. Without this the plan would exceed the cap by $328 million in the first year.
- It restores major funding for social services and education programs compared with Gov. Dannel P. Malloy’s proposal. But it also would require more than $500 million in new revenue – beyond that recommended by the governor – to remain in balance in the first year.
- It also relies on $325 million in borrowing to cover payments on other debt, drawing warnings from the state treasurer that it could harm the state’s reputation with Wall Street investors.
Final budget
Bottom line
$19.8 billion in FY 2016, $20.4 billion in FY 2017
Spending growth: 3.9 percent in FY 2016, 3.0 percent in FY 2017
The fine print
- It would require almost $900 million more in revenue beyond that recommended by the governor. Over two fiscal years, the package boosts taxes by about $1.3 billion and cancels close to another $500 million in previously approved tax cuts. Increases were ordered in income, sales, corporation and hospital taxes.
- But it cancels plans developed previously by the legislature and Gov. Dannel P. Malloy to raise the sales tax rate on data processing and web development services, which drew heavy criticism from business lobbyists and major corporations. It also delays by one year, until Jan. 1, 2016, the imposition of a unitary reporting requirement within the corporation tax.
- It restores major funding for social services and education programs compared with Malloy’s proposal.
- This budget relies on a controversial new interpretation of the spending cap to exempt contributions to pensions and other retirement savings plans. It also takes a slightly different approach toward calculating allowable spending growth, using personal income data on a calendar year basis rather than the fiscal year.
- It also authorizes the launch of keno gaming and relies on $325 million in borrowing to cover payments on other debt. The latter move drew warnings from the state treasurer that it could harm the state’s reputation with Wall Street investors.