Legislative Democrats recommend that the state spend $180 million or 7.4% more more in municipal aid next fiscal year.
With $30 million in promised state aid to towns already months overdue, local leaders say seasonal demands can’t wait for resolution of tolls debate.
Poor communities would gain the most through a redistribution of the Education Cost Sharing ESC) grant, while wealthy towns would lose the most.
Gov. Dannel P. Malloy would be hounded by the debt-riddled state finances he inherited, pension obligations that would force deficits and tax hikes while leaching dollars from transportation and other programs. But Malloy also would be the first governor in modern history not to saddle future generations with pension costs owed during his administration.
Ned Lamont’s biggest challenge as governor is likely to be devising and then selling fellow Democrats in the General Assembly on the “structural changes” he says are necessary to break Connecticut’s cycle of chronic budget deficits.
Legislative leaders are leaning against attempting to override Gov. Dannel P. Malloy’s latest veto. The reason: they included what effectively amounts to duplicate language in a second bill the governor already has signed.
In a major move toward a bipartisan budget compromise, Republican legislators recommended more funding for social services, higher education, transportation and municipalities — and agreed to help pay for them by tapping about $300 million of this spring’s income tax windfall.
Despite a proposal that could jeopardize state aid in the coming years, the Connecticut Conference of Municipalities has endorsed the full report of the Commission on Fiscal Stability and Economic Growth, arguing it offers more long-term benefits for the state and its communities.
With the final flourish of a veto-proof margin, the House of Representatives voted Thursday to give final legislative passage to an overdue, bipartisan budget crafted without the direct involvement of Gov. Dannel P. Malloy.
The Senate took a major step early Thursday toward ending Connecticut’s nearly 17-week budget impasse, overwhelmingly adopting a $41.3 billion, two-year plan that closes huge deficits without raising income or sales tax rates, imposes modest cuts on local aid, and provides emergency assistance to keep Hartford out of bankruptcy.
Attorney General George Jepsen offered a legal opinion Tuesday that questioned the legality of Gov. Dannel P. Malloy’s plan to administer municipal aid in the absence of a state budget. But he offered Malloy and the legislature just one alternative — write a new state budget.
The toll Connecticut’s budget standoff has taken on cities and towns will nearly quadruple this week as key education and general government grants will be reduced or withheld.
Gov. Dannel P. Malloy’s administration charges that the reported bump in municipal aid in the Republican-crafted state budget is fiction — “gimmickry” that understates last year’s local aid to make the new grants look larger. Senate Republican leader Len Fasano insists the aid is real and that the governor should sign the budget, which attracted bipartisan support.
Gov. Dannel P. Malloy has been sparring with his fellow Democrats in the House of Representatives over how much new tax and fee revenue should be raised for the budget. But the real debate is over what type of revenue should be raised — not how much.
Just over seven weeks into the new fiscal year without an approved budget, state finances — not surprisingly — are running $94 million in deficit, Gov. Dannel P. Malloy’s administration reported Monday.