Connecticut Governor Ned Lamont released his budget Wednesday.
Lamont unveiled his plan to a joint session of the General Assembly, about a month into his second four-year term. The Democrat has been announcing a number of proposals in recent days, including a tax cut that would be included in the state budget for the 2024 and 2025 fiscal years.
“My primary focus for the next two years and beyond will be economic growth and inclusive opportunity,” he said. “That is what my proposed budget will deliver. For the first time in over a generation, Connecticut has enjoyed strong economic and population growth and more taxpayers. A growing economy, coupled with our shared fiscal discipline, has resulted in four balanced budgets — soon to be five.”
Lamont says taxpayers would save $440 million a year under his tax cut plan, which would permanently lower the 5 percent income tax up to $50,000 — or $100,000 for married couples — to 4.5 percent, and lower the 3 percent tax on the first $10,000 — or $20,000 for married couples — to 2 percent.
He says about 1.1 million of the state’s 1.7 million tax filers would see relief under the plan, with some joint filers saving about $600 a year. It would mark the first income tax reduction since 1996 in Connecticut.
“I want a sustainable tax cut that we can support in good times,” he said, “and not so good times. Look, we've had a number of false starts and promises and on again-off again tax cuts. Not this time. For those families most in need, I also want to go a step further. I'm proposing a 31% increase in the Earned Income Tax Credit.”
Lamont is also proposing a new material and waste management plan, canceling medical debt, and strengthening gun safety laws. As part of the two-year, $50.5 billion plan, Lamont is also calling for more investment in housing.
“We're still desperately short of housing. Look, having just climbed out of a fiscal crisis, I don't want to fall into a housing crisis,” he said. “So, in addition to increasing our investments in affordable housing, our budget proposes an additional $200 million for workforce housing, which will allow the state to provide more housing options for you, and more financing options for our developers so they can start building more quickly.”
Office of Policy and Management Secretary Jeffrey Beckham says the plan will allow the state to continue operating under balanced budgets after years of gridlock and billion-dollar deficits.
“We’re showing a surplus here in Fiscal ’24 of $816 million, but we’re projecting in the years coming up, surpluses in each year,” he said. “Even after we apply the current revenue cap under the law, we still are in balance in both years of the biennium.”
Majority Democrats issued statements generally supportive of the plan.
