Rep. LeGeyt, Republicans Offer Alternative Budget Plan

HARTFORD—State Rep. Tim LeGeyt (R-Avon, Canton) today joined Republican lawmakers in offering an alternative budget plan that accelerates tax relief, restores transportation funding, phases in a pension tax exemption, and responsibly pays down long-term debt. 

“This plan offers positive solutions to the residents of Connecticut by providing immediate tax relief which they have been asking for, and offers municipalities more state aid than any other current budget proposal,” said Rep. LeGeyt. 

In addition, the Republican budget proposal adds $41 million into the Municipal Revenue Sharing Account. The Republican proposal gives more support to towns and cities than both the Governor’s and Democrat’s budget.  The Republican plan would give Avon $25,461 and Canton $14,415 more in state aid than they will receive under the current budget.
 
The plan from House and Senate Republicans rivals separate plans from Gov. Malloy and legislative Democrats. It would keep state spending below the Constitutional Spending Cap, a boundary the majority party exceeded last year.  The Republican proposal, according to the state’s non-partisan Office of Fiscal Analysis, is the only budget plan that does not increase future deficits.

Also part of the proposed budget is a phased-in exemption of all pensions from the income tax, starting at 5 percent. “After consistently ranking as the worst state to retire in, this plan will help to correct the perception of Connecticut by eliminating taxation on pensions,” said LeGeyt.  “We are only one of three states in the nation that employ this policy.  It is no wonder that residents continue to move out of Connecticut to retire elsewhere, in states where their pensions are not taxed.” 

Other key components of the Republican plan include:

§  $196 million to pay off Economic Recovery Notes in order to reduce long term debt

§  $133 million to accelerate the sales tax exemption on clothing and footwear under $50

§  Preserves new money for mental health initiatives

§  $100 million to decrease the state employee pension unfunded liability.

§  Provides $4.4 million for Department of Developmental Services to ease client waiting lists

§  Restores $9 million to the retired teachers’ health care plan

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