Democratic Governor Dannel Malloy says Connecticut is holding up extremely well despite not having a budget. Malloy was speaking on Wednesday at an event to highlight the need for upgrades to the 70-year-old Heroes Tunnel on the Wilbur Cross Parkway in New Haven.
Connecticut was one of 11 states that ended their fiscal year last Friday without a budget. On that day Governor Malloy signed an executive order allowing him to take over state spending by executive authority to maintain essential state services. He says he would have preferred that lawmakers had passed a three-month temporary budget before the end of the fiscal year on June 30. Malloy says that would have allowed the state to avoid cuts to youth summer employment programs and rental assistance to the elderly.
“Having said that, they didn’t act before the deadline and the next reasonable date that perhaps some progress might be made appears to be the 18th. I gave up howling at the moon a long time ago.”
That’s because Connecticut House Speaker Joe Aresimowicz, a Democrat from Berlin, has said his Democratic caucus has a two-year budget plan that could be ready for a vote on July 18. But Malloy says he doesn’t believe they are quite there yet.
“I know there have to be discussions between the Senate and the House to allow bills to be brought up. So there’s a lot of work to be done.”
Despite the lack of a budget, Malloy says there will continue to be funding for the state’s ongoing highway and other transportation infrastructure projects in order not to lose construction time that could result from a shutdown.
The Connecticut Conference of Municipalities, an association that represents most of Connecticut’s towns and cities, is hoping a 1 percent sales tax increase will be part of any budget agreement reached by state lawmakers.
CCM spokesman Kevin Maloney says the state would share proceeds of the tax increase with cities and towns to lessen their property tax burden.
“Most towns don’t have any other options except a property tax, and most experts would tell you that it’s a very regressive tax in that it tends to be highest in towns where property values are lower. It’s very problematic in the year 2017 for towns to run their government and provide all the services needed, solely using the property tax.”
The House Democrats’ budget contains a proposal for a sales tax increase.
