After Republicans failed to table revenue projections the Senate will use today when it debates the two-year, $40.11 billion budget, the legislation passed the Finance, Revenue, and Bonding Committee 31 to 18.
The vote was mostly along party lines with Rep. Kathy Tallarita, D-Enfield, voting against it.
Aside from the $2 billion hole left in the budget for labor concessions, Republicans objected to the inclusion of the Internet sales and cosmetic surgery taxes, since the Commissioner of Revenue Services has said the taxes will be difficult to collect.
But even more objectionable to Republicans was the $369 million surplus built into the first fiscal year and $635 million built into the second fiscal year of the budget.
Sen. Andrew Roraback, R-Goshen, said the legislature was passing the largest tax increase in history with a $1 billion surplus built into it.
“That’s an afront to people who are trying to hold onto what they have,” Roraback said.
Rep. Vincent Candelora, R-North Branford, agreed. He said by assuming the state will take in a $1 billion more than it needs the legislature is essentially overtaxing the residents of Connecticut.
Sen. Toni Boucher, R-Wilton, said the Connecticut public is already “overtaxed” and trying to get more revenue from them will only hurt the economy and business growth in the state.
“There’s growing outrage on behalf of the public for good reason,” Boucher said.
This year’s estimated $458 million surplus is already dedicated to paying down the Economic Recovery Notes the state planned on borrowing and paying back with a charge on consumers’ electric bills.
The 2012-2013 revenue projections do not include the 3-cents-per-gallon gas tax increase proposed by Gov. Dannel P. Malloy. The Office of Fiscal Analysis said that money will be made up with additional money from the gross receipts tax, which is the 7 percent tax applied to the wholesale price of gasoline, and some additional savings in the special transportation fund.
Rep. Sean Williams, R-Watertown, was quick to point out that the gross receipts tax is adding to the price of gas every day as the cost per gallon climbs. He said today the wholesale price of gas is $3.46 which means the gross receipts tax is raising 26 cents per gallon. That’s on top of the 25 cent flat excise tax on gasoline.
“We’re not doing anybody any favors by reducing the gas tax,” Williams said.
Rep. Patricia Widlitz, D-Guilford, said she understands his concern, but the state has a responsibility to make sure it has enough money in the transportation fund in order to keep its bond rating.
Williams was also vocal about the Internet sales and cosmetic surgery tax, which Revenue Services Commissioner Kevin Sullivan said in this letter to Malloy’s budget director that he would have a difficult time collecting.
He wondered how they could be included as part of the revenue package if the state was uncertain it was going to be able to collect them.
Widlitz said the Internet sales, also known as the remote sellers tax, was a policy decision to make sure brick and mortar stores in the state weren’t at a disadvantage in the marketplace. Bookstores, especially, have complained they’re losing business to Internet retailers because customers don’t have to pay the sales tax when they purchase goods on the Internet.
Widlitz said currently those buyers are supposed to be reporting those purchases on their income tax returns. She said the budget item will just force the retailers, such as Amazon to collect the tax and transmit it to the state.
“There were decisions across the board that nobody is going to be happy with,” Widlitz said.
The Senate is expected to vote on the budget this afternoon. However, at least one Democrat, Sen. Ed Meyer, D-Guilford, won’t be voting in favor of it.
In an elevator ride at the Capitol, Meyer told CTNewsjunkie that he’s voting against it for three reasons.
Support authentic, locally owned and operated public service journalism!
“The first is the tax increases are more than double the spending cuts,” Meyer said. “That’s just a whacky philosophy.”
The second reason is a fiscal crisis is an opportunity to downsize government and the budget only eliminates 280 of the 50,000 state employees. He said some agencies are bloated.
The third reason is the $2 billion hole from the labor concessions.
“That makes this a very Alice in Wonderland budget,” Meyer said before heading into caucus.
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