HARTFORD, Conn. (WTIC Radio) - Governor Ned Lamont signed the Fiscal Year 2023 budget adjustment bill into law Monday, bringing over $600 million of tax cuts to residents.
The goal of the bill, Lamont said, was to help people get back to work and to get the state's economy going again while offering major tax relief for the middle class.
The tax cuts include the temporary gas tax suspension, a $250 child tax credit for lower to middle class families, the increase of the property tax credit to $300 and the reduced mill cap rates for vehicle property taxes, among other provisions.
According to state officials, the budget also plays a critical role in stabilizing the state's economy. For example, the budget pays down about $3.3 billion in unfunded pension liabilities.
Republicans have voiced concerns that the budget doesn't do enough for taxpayers.
"This budget adjustment is a missed opportunity to make Connecticut more affordable," Senate Republican Leader Kevin Kelly and House Republican Leader Vincent Candelora said in a joint written statement. "Connecticut Democrats voted against what would have been a record-breaking $1.2 billion tax relief package for Connecticut's working- and middle-class families proposed by CT Republicans."
While he knows that Republicans wouldn't vote yes on the budget bill, Speaker of the House Matt Ritter said he'd ask Republicans what they would change now that the bill has passed.
Would Republicans repeal the child tax credit, reverse the property tax credit, disinvest in children's mental health or change any of the other provisions that the new budget includes, Ritter asked.
"What would you change? You know what the answer probably is? Almost nothing. We're going to have a rainy day fund of $3.3 billion, the highest level in the history of this state... You have $2.8 billion or so being paid in the pension fund, creating $400 million in spending cap growth," Ritter said.
In the statement, Kelly and Candelora said, "We offered an income tax cut and sales tax cut and would have eliminated taxes that drive up the prices of food. We showed a better way to a more affordable Connecticut, but Democrats were unwilling to join us in delivering significant, immediate relief even as families struggle with historic inflation."
The rising gas prices in Connecticut have raised these concerns among residents.
"There are some storm clouds on the economy," Lamont said, "but I think we are as well prepared as the state can be, starting with the rainy day fund, starting with the extra money we get from the pension savings, and we made sure that we don't have a big cliff for 2024. But more importantly, I think we met the moment in terms of mental health, day care and workforce."
Kelly and Candelora stressed in their statement that Connecticut Democrats have raised taxes by over $6 billion in the last decade and are choosing not to make the state more affordable.
"Instead of giving families more tax relief, CT Democrats chose to increase spending and grow government. They chose temporary relief in the future when people need help now. It's wrong for government to keep the overtaxation of Connecticut residents due to inflation, especially at a time when so many people are struggling," they said.
Bob Stefanowski, the Republican-endorsed candidate for governor, called the budget a failure with his own written statement.
“Apparently, Governor Lamont thinks that he and Joe Biden taking $5200 out of your left hand pocket and putting $400 back in your right hand pocket is a 'historic' tax cut. Frankly, it's insulting to Connecticut's working families, seniors, and small businesses. As Governor, I will deliver real relief and make sure our state government works for everyone, not just the political insiders," Stefanowski said.