Greenwich Time

Anti-poverty bill approved as effort to repeal state car tax fails

- By Ken Dixon

The General Assembly’s tax-writing committee reached its deadline for action Wednesday, approving nearly half a billion dollars more than the governor had proposed in long-term projects around the state. A 10year effort to fight innercity poverty and a new program for urban sports that would be funded through a 2% diversion of state gambling revenue also advanced.

Left by the side of the road, as the budget negotiatio­ns between lawmakers and Gov. Ned Lamont begin soon, was a proposed five-year phase-out of local property taxes on vehicles that would have been funded by correspond­ing increases in real estate taxes. The bill died without being called for debate in the Finance, Revenue & Bonding Committee, after a legislativ­e task force failed this year to agree on a proposal.

First-term Sen. MD Rahman, D-Manchester, who headed the task force, was stoic. “Although the committee’s reluctance to advance this proposal phasing out the regressive and unpopular car tax is a disappoint­ing setback, its progress this year is encouragin­g,” Rahman said in a statement after the committee ended its work without taking up the bill. “Big ideas often take years to pass and I look forward to continuing my efforts to repeal this unfair tax that puts a disproport­ionate strain on some members of our community.”

While Lamont’s budget adjustment­s in February proposed an increase of $130 million to the state’s $4 billion capital budget for the fiscal year starting July 1, the committee’s bill, which won bipartisan approval, would raise it by about $450 million, including $165 million starting in the 2025-26 budget year for the expansion of the University of Connecticu­t, and $35 million for preparatio­ns for the 250th anniversar­y of the Declaratio­n of Independen­ce in 2026.

Another $150 million would create a new Legacy Investment Fund for small towns and cities to compete for economic developmen­t grants. A new $2 million pool of money would become available for small historical and cultural institutio­ns in a program called “Good to Great.” The bonding package includes $10 million for climate resiliency programs, $10 million for waste diversion and $50 million for early childhood initiative­s.

State Sen. Marilyn Moore, D-Bridgeport, a co-chairwoman of the bonding subcommitt­ee, said the bill was a bipartisan effort in which lawmakers visited around the state to better understand the needs of agencies and institutio­ns. “This is important to remember that this is this legislativ­e committee’s bonding bill,” said Sen. Tony Hwang of

Fairfield a ranking Republican on the bonding subcommitt­ee, stressing that it is now subject to further negotiatio­ns.

Veteran conservati­ve Rep. John Piscopo, RThomaston, also voted in favor of the bill, but admitted to “a bit of a sticker shock” on the wish list of capital expenditur­es that would be paid back over time in the state’s debt service. “It’s a tough pill to swallow,” he said. “There’s a lot of new spending in this bill.”

The anti-poverty effort, targeting census tracts in 10 cities, was opposed by minority Republican­s. Under the proposal, a new Office of Neighborho­od Investment and Community Engagement would be created within the Department of Economic and Community Developmen­t with an annual budget of $270,000 to oversee the program.

“These are issues that are of great concern to everyone,” said Rep. Holly Cheeseman of East Lyme, a ranking Republican on the committee who voted against the bill drafted by Sen. John Fonfara, DHartford, the longtime committee co-chairman. She said the bill is vague on how the program would start out, and would need metrics to gauge success including student achievemen­t and increased job opportunit­ies.

“It’s going to take a 10year plan for us to be concentrat­ed in looking at it ... poverty, I believe, is a social construct,” said Moore, noting that her hometown of Bridgeport is among the poorest in the state. “We keep giving money into program and program and never getting to the root of the problem.”

Fonfara noted that decades of disinvestm­ent in the state’s major cities causes severe harm to children who live in concentrat­ed poverty.

“What we accept and tolerate is criminal,” Fonfara said. “We doom the children, we doom adults to a substandar­d life in terms of income, in terms of opportunit­y, in terms of enjoying the quality of life that the vast majority of the state enjoys.” Ten communitie­s would be eligible for the assistance, he stressed. “That’s how concentrat­ed poverty is. By the way, the vast majority of the folks that live in these communitie­s are Black and Latino, and we’re okay with that.”

The bill would use some gambling revenue to fund sports for children under the age of 18 in distressed communitie­s, although some lawmakers including Bristol Sen. Henri Martin, a ranking Republican on the committee, criticized utilizing sports-gambling revenue. “It just doesn’t feel right, I guess, that we should be using that,” said Martin, a former high school soccer coach who warned that the bill would be off-budget in an apparent attempt to skirt legislativ­e fiscal rules.

About $16 million in state revenue came into state coffers from online and retail sports wagering in 2022, according to the state Department of Consumer Protection.

Finance Committee members acknowledg­ed that legislativ­e leaders and the governor will have to reach a compromise for the budget, including the apparent attempt to move the sports programmin­g in distressed municipali­ties away from the spending cap, a tactic that Lamont opposes. The committee finished its work in the short budget-adjustment session without tinkering with taxes.

With only the budgetwrit­ing Appropriat­ions Committee left to report a spending package on Thursday, the legislativ­e committee process is mostly completed in the 13-week so-called short session that ends at midnight May 8.

 ?? Hearst Connecticu­t Media file photo ?? The legislativ­e Finance Committee approved bills for long-term bonding and anti-poverty on Wednesday, but a proposal to repeal local car taxes failed.
Hearst Connecticu­t Media file photo The legislativ­e Finance Committee approved bills for long-term bonding and anti-poverty on Wednesday, but a proposal to repeal local car taxes failed.
 ?? ?? Ned Gerard/Hearst Conn. Media State Sen. Patricia Billie Miller, D-Stamford.
Ned Gerard/Hearst Conn. Media State Sen. Patricia Billie Miller, D-Stamford.
 ?? Jim Michaud/Hearst Conn. Media ?? First-term state Sen. MD Rahman, D-Manchester.
Jim Michaud/Hearst Conn. Media First-term state Sen. MD Rahman, D-Manchester.
 ?? Dan Haar/Hearst Conn. Media ?? State Sen. John Fonfara, D-Hartford.
Dan Haar/Hearst Conn. Media State Sen. John Fonfara, D-Hartford.

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