(Updated 3:59 p.m.) Gov. Dannel P. Malloy joked that he didn’t bring his crystal ball with him Thursday, but if he had to guess he thinks his first budget proposal, which raises taxes $1.5 billion and cuts spending by $1.76 billion, will make it through the process more intact than former governor’s budgets.
“It will look a lot more like my budget than Gov. Rell’s last budget looked like hers,” Malloy predicted after his first state Bond Commission meeting.
But Malloy was cautious not to allow his ego to steamroll another branch of government, which will have a chance to present its own budget in April.
“There’s a legislative process. I want to be respectful of that process,” Malloy said.
“Having said that, our state is in a terrible state and I suppose if the Yankee Institute had asked people if they think Connecticut is doing well right now a large, significant number of people would say, no it’s not. And that’s what we’re trying to change here.”
A recent poll by the Yankee Institute found 73 percent oppose the elimination of the property tax credit on the middle class. Only 15 percent support it.
“Many people who oppose us on this actually don’t qualify for it, which is an interesting set of circumstances,” Malloy said. He said he formed that opinion by talking to people and asking them what their incomes were and their incomes were in excess of incomes that would have allowed them to have that credit.
The $500 property tax credit diminishes on a sliding scale ending with those making $175,000 a year. A sizeable portion of this $365 million, as much as $80 million of it is being paid to the federal government, which works the credit into a person’s adjusted gross income for its tax purposes, Malloy said.
He said it really doesn’t benefit people, but it became a popular tax credit since its inception in 1996. Over the past several years, there have been proposals to eliminate it, but the political will hasn’t been there to get it done.
Asked how strongly he was willing to fight the legislature to maintain the elimination of the tax credit: “Pretty willing,” he said.
“If you’re asking me if we’re going to go to the mat for $365 million, the obvious answer is, of course,” Malloy said. “Having said that there’s room for the legislature and us to do our jobs.”
Asked if he was surprised people would be opposed to tax increases, Malloy quipped, “I’m opposed to tax increases.”
Fergus Cullen, executive director of the Yankee Institute of Public Policy, said the property tax credit “has been a political yo-yo for years.” He said in good times the state looks to increase the tax credit and in bad times it looks to eliminate it.
Sources believe the credit, which has been around since 1996, has a good chance of being eliminated this year even though Democratic lawmakers have signaled they will oppose its elimination.
The Yankee Institute’s poll conducted last Sunday also found that while voters disapprove of almost of the tax increases Malloy included in his budget, they support the increase in taxes on alcohol and cigarettes by a margin of 68 to 39 percent.
By a margin of 71 percent to 20 percent the poll found that voters support getting unionized public workers to accept lower pay or benefits. Malloy has assumed he’ll be able to get the state employees unions to give up $1 billion a year in concessions and savings.
Cullen said the support for state employee concessions should “give the governor courage to go for those concessions.”
“And the public employee unions should be careful because they might not have as much support out there as they think they have,” Cullen said.
Support authentic, locally owned and operated public service journalism!
Cullen said he was surprised that most voters believe a balanced approach of spending cuts and tax increases are necessary to balance the state’s budget.
“It could be said that seventy percent of voters were open to some higher taxes in order to balance the budget,” Cullen said. “But certainly there’s an appetite for more spending cuts and going after unions for concessions.”
Malloy’s popularity, according to the poll, is 50 percent with 46 disapproving of the job he’s done since taking office on Jan. 5.
More State Budget news

Stefanowski Talks Abortion, Employee Raises & Budget In First Press Conference
For a half-hour Wednesday, Bob Stefanowski stood outside the state Capitol and fielded questions on abortion rights and state employee raises in a sign the Republican candidate plans to run a more conventional campaign in this year’s rematch with Gov. Ned Lamont.
Keep reading
Lamont Signs The Budget
Alongside Democratic legislative leaders, Gov. Ned Lamont signed the $24 billion budget adjustment Monday that includes $600 million in tax relief. That’s more than they anticipated they would be able to offer Connecticut residents this Election year because revenue came in higher than expected, but it still creates about an $800 million deficit in 2024. …
Keep reading
ANALYSIS | It’s A Wrap: The Winners and Losers of the 2022 Session
It was a short legislative session, but the House and the Senate were able to move a lot of business this year, including the passage of a $24-billion budget with around $600 million in tax cuts.
Keep reading
Connecticut Acts To Help Its Lead-Poisoned Children
After decades of inertia, Connecticut is finally moving to help its thousands of lead-poisoned children and prevent thousands of other young children from being damaged by the widespread neurotoxin.
Keep reading
Bill Bolstering Contracting Oversight Board In Jeopardy After Lamont Administration Raises Concerns
It passed unanimously in the Senate, but a bill that would give the State Contracting Standards Board greater oversight over state contracting appeared stalled in the House Wednesday on the last day of session. “The governor and I have not talked about the bill,” House Speaker Matt Ritter said. “The commissioners have sent us a…
Keep reading
Senate Approves Tax Cuts, Sends $24B Budget to the Governor
The state Senate gave final approval late Tuesday to a $24 billion election year budget plan that includes around $600 million in tax relief while enabling the state to make an $3.5 billion payment on its unfunded pension debt. Senators voted 24-12 at around 10:30 p.m. to send the midterm budget adjustment to the desk…
Keep reading
House Green-Lights $24B Budget
On a party-line vote early Tuesday, the House passed a $24 billion budget adjustment package containing more than $600 million in tax cuts which Democrats heralded as “historic” and Republicans derided as temporary. Lawmakers voted 95 – 52 at around 12:20 a.m. to send the 673-page budget document to the Senate for consideration before the…
Keep reading
Budget Materials
The General Assembly is preparing to debate adjustments to the $24 billion state budget. Below are a few of the documents we’ve been provided as back-up materials. The budget, HB 5506. Town runs. Car tax impact on municipalities. Finance Committee Power Point.
Keep reading
Lawmakers May Vote for First Pay Increase in 20 Years
With legislative retirements mounting, lawmakers on both sides of the aisle were considering Monday raising the salaries of General Assembly members for the first time in more than two decades and indexing their pay in the future. During a morning press briefing, House Speaker Matt Ritter told reporters that funding for pay raises had been…
Keep reading
Amid Surging Revenue, House Prepares to Vote on Budget Adjustments
Connecticut’s House of Representatives was expected to vote Monday on a $24 billion budget adjustment package, buoyed by revised revenue predictions that exceeded expectations by more than $350 million. The revised consensus figures released Monday confirm the surge in revenues that enabled Gov. Ned Lamont and legislative Democrats to reach an agreement last week on…
Keep reading
Dems Detail Budget Deal With $500 Mil in Tax Cuts, Extension of Gas Tax Holiday
Legislative Democrats and Gov. Ned Lamont’s administration announced Wednesday the details of a $24.2 billion budget adjustment package, which they say provides around $500 million in tax relief including extending a gas tax holiday until December. Lamont and legislative leaders outlined the agreement during an afternoon press conference in the state Capitol building. Both chambers…
Keep reading
Health Care Workers Call for New Hires
After a record number of health care workers are expected to retire this year, health care staff called on Gov. Ned Lamont to commit to filling 1,000 vacant positions by August 1 of this year. A record 1,137 state workers who notified the state that they will retire this year comes at a moment of…
Keep reading
Senate Joins House And Votes To Give Raises, Bonuses To State Employees
The Senate gave final approval by a 22-13 vote on a plan to give unionized state workers a set of raises and bonuses. The plan, negotiated by Gov. Ned Lamont’s administration and a coalition of public sector labor unions, provides three years of 2.5% raises and step increases as well as a total of $3,500…
Keep reading
House Advances Labor Deal In Historic Vote
Lawmakers in Connecticut’s House of Representatives signed off on a plan to give state workers a set of raises and bonuses Thursday in a mostly partisan vote on a negotiated labor agreement. The House voted 96 to 52 in support of the deal with 1 Republican, Rep. Tom Delnicki of South Windsor, joining all Democrats…
Keep reading
Republicans Propose Last-Minute Tax Package
Legislative Republicans pitched a $1.2 billion tax relief plan Thursday which reduces state income, sales and gas taxes and proposes to join other states in suing the federal government to challenge restrictions on spending pandemic relief funds. House and Senate Republicans announced the plan during a state Capitol press conference Thursday morning. It cuts the…
Keep reading
The Budget Battle Begins To Take Shape
Tax collections have improved and pushed Connecticut’s budget surplus to $4 billion, but the state budget still relies heavily on federal funding and without it the state would end up running a “sizeable operating deficit.” The Office of Policy and Management told state Comptroller Natalie Braswell Wednesday that if not for the use of the…
Keep reading