State budget passes swiftly

HARTFORD — The Connecticut General Assembly quickly passed Gov. Dannel P. Malloy’s budget this week, with the Senate voting 19-17 early Tuesday morning and the House quickly following with an 83-67 vote to approve the $40.1 billion package.Critics noted that the budget raises $2.6 billion in taxes for the next two years and may make it more difficult for Connecticut businesses to thrive, but swift passage came as a political victory for the new governor, who had asked the Legislature for a speedy vote.“With the passage of this budget by the Democrats in the House of Representatives, coming on the heels of yesterday’s passage by the Senate, Connecticut has taken another important step toward much-needed fiscal stability,” Malloy said in a Wednesday-morning statement. “In particular, I want to thank Speaker Chris Donovan, Majority Leader Brendan Sharkey, Appropriations and Finance Co-Chairs Toni Walker and Patricia Widlitz and the other 79 Democrats who had the courage to make this vote. As I said yesterday, I know it’s a tough vote. It’s also the right vote.”The approved budget raises spending by 2.8 percent in its first year and 2.3 percent the following year, but does not address Malloy’s call for $2 billion in concessions from state employees. Republicans had submitted a zero-increase budget, along with numerous motions in the House and Senate, which were defeated by the Democratic majority. In the end, the Democrats had a comfortable enough margin to get the budget passed after relatively brief debate.Connecticut’s sales tax is expected to increase from 6 to 6.35 percent under the new budget, with higher taxes on alcohol and a 3-percent cabaret tax on live music venues. Taxes for families making $200,000 to $400,000 per year will increase and the state’s highest earners will pay a 6.7 percent income tax, retroactive to Jan. 1, 2011.Widely quoted in a statement to the press Tuesday, Sen. Andrew Roraback (R-30) said taxes are a major issue in the approved budget. “Hold on to your hats,” he said. “We’re going to tax you from head to toe and everything in between.” The senator added that he believes the middle class will be hit hardest by the budget.Democrats said families making $100,000 a year will only see their income taxes go up about $20 this year and that a balanced budget will make Connecticut a more attractive state for job creation.Malloy was the most enthusiastic supporter of the budget, saying it is “balanced, honest and contains none of the gimmicks that helped get us into this mess. It will provide the stability we need to foster much-needed job creation — which is everyone’s top goal.”Malloy said his next order of business will be to get concessions from state employees. “Now it’s up to my administration to reach an agreement with our fellow state employees and to present it to the Legislature for ratification,” he said. “I remain hopeful that we’ll get there. If we don’t, I remain committed to presenting an alternative budget to the General Assembly in the next couple of weeks.“Make no mistake,” the governor added. “Come July 1, Connecticut will have an honest, balanced budget in place.”