Joan Hartley

Sen. Hartley Votes for State Budget with Half a Billion Dollars in Tax Cuts, Investments in Child Care, Mental Health, Social Services and More

Today, State Senator Joan Hartley (D-Waterbury, Naugatuck, and Middlebury), supported final passage of a modified second year of the two-year state budget that will bring Connecticut’s 3.5 million residents a half-billion dollars in tax savings while investing hundreds of millions of other dollars in new childcare, mental health, social service, job creation and other new state programs. The bill now heads to Governor Lamont for his signature of the 2022-2023 state budget into law.

“After many hours of hard-work, I’m pleased that we have achieved a budget product that delivers substantial tax cuts to families and makes key investments that will touch every part of our community,” said Sen. Hartley. “This budget is a plan of action to ease financial strains on households and grow Connecticut’s economy. The financial savings afforded by this budget through reducing car taxes, at long last extending the eligibility for the manufacturing apprenticeship tax credit and enhancing the Earned Income Tax Credit will make a meaningful difference in the financial well-being of families and businesses across the greater Waterbury region.”

The budget includes historic tax cuts for Connecticut’s citizens as well as major new investments in some of the human needs that were highlighted by the past two years of the deadly and disruptive COVID-19 pandemic.

The budget is still under the state-mandated spending cap, has maxed out our state Rainy Day Fund at $3.3 billion, and makes a massive, unprecedented $3.5 billion payment toward Connecticut’s 70 years of built-up pension debt.

The 15th Senate District consisting of Waterbury, Naugatuck, and Middlebury will receive in fiscal year 2023 an increase of about $7.77 million in collective total municipal aid including ECS funding. When separated by municipality it is the following:

• Waterbury – About $7.022 million increase in total municipal aid
• Naugatuck – Over $522,000 increase in total municipal aid
• Middlebury – Over $226,000 increase in total municipal aid

Some of the $600 million in tax cuts that will help Connecticut residents include:

Continuation of the 25-cent per gallon gasoline tax holiday through December 1, thereby saving Connecticut residents another $150 million. Also, a continuation of free public bus service transportation in Connecticut through December 1
• Creates a new $250-per-child credit against the state income tax for low- and middle-income households, up to a maximum of $750, for single filers with earnings less than $100,000 per year and couples making less than $200,000. This saves Connecticut families $125 million
• A cap on the tax rate charged by cities and towns on motor vehicles will reduce car taxes by $100 million for residents in about 45% of Connecticut municipalities, including Waterbury, Naugatuck, and Middlebury
• Increase the maximum property tax credit exemption from $200 to $300, saving Connecticut families $60 million per year this year and into the future
• Increasing the state Earned Income Tax Credit, a program created by former President Ronald Reagan and used by 186,000 Connecticut residents living in every town in the state.
• The increased tax deduction will save Connecticut families $49 million a year
• Accelerating the phase-out of taxes of certain pension and annuity income, saving Connecticut residents nearly $43 million
• The budget even eliminates the tax on movie theatre tickets, saving movie-goers $2.5 million this year
• Improves the JobsCT rebate program, which incentivizes job creation and retention. The budget allows for the rebates that businesses earn as jobs are created and maintained to now exceed the caps on insurance premiums and corporation business tax credits
• Extending the manufacturing apprenticeship tax credit to pass-through entities, which will support small and mid-sized manufacturers. The tax credit can now be claimed against the affected business entity tax

This budget makes major investments in the public services Connecticut residents demanded following two years of the deadly and disruptive COVID-19 pandemic: the mental health crisis impacting our children, expanded services for people with substance-use disorders, better wages for people working in our non-profits and as personal care attendants, increased funds to support survivors of domestic violence, more money for community college tuition, job-training programs, and a historic investment in child care services so parents can get back into the workplace.

The budget includes:

• $10 million for mental health services at School-Based Health Centers
• $30 million for increased 24/7 mobile crisis services
• $72 million for private-sector non-profit pay raises
• $23 million for personal care attendants
• $70 million for childcare industry wage enhancements
• $15 million to renovate and construct early childhood facilities
• $2.5 million to combat gun violence
• $2.8 million for survivors of domestic violence
• $50 million for affordable housing
• $75 million to update school air conditioning and heating systems
• $8 million to increase access to town-run summer camps
• $3 million for senior citizens’ adult day programs and Meals on Meals
• $4 million for Alzheimer’s respite care programs

The budget makes several targeted investments to support the greater Waterbury area in fiscal year 2023:

• $100,000 for the Boys and Girls Club of Greater Waterbury, Inc.
• $100,000 for Naugatuck Railroad to construct a handicap-accessible platform at the Waterbury stop on the Naugatuck rail line
• $125,000 for the Brass City Food Hub in Waterbury

Increase funding by $30,000 for the Seven Angels Theatre in Waterbury

To view more details and analysis of the budget, please visit: https://cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&which_year=2022&bill_num=5506