Potential budget showdown over tax hikes
Budget talks are underway as lawmakers and Gov. Ned Lamont attempt to reach a deal before the General Assembly adjourns June 9, but the sides remain in disagreement about taxes. Democratic lawmakers favor raising taxes on the wealthy to fund tax credits for the poor and middle-class and other initiatives. Lamont has resisted tax hikes, saying the state is in good financial standing and tax increases send the wrong message.
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The big story
Legislative Democrats are not backing down on tax hikes:
Democrats in the General Assembly are pressing ahead with plans for raising taxes on the state’s wealthiest residents, despite Lamont’s opposition to the idea, setting up a potential budget clash with the governor. Closed-door budget talks have begun as lawmakers race toward the legislative session’s June 9 adjournment. A tax package that passed the legislature’s finance committee would increase taxes on capital gains by 2 percentage points for high-income earners and create a new consumption tax on the rich. “The capital gains [increase] is something that we’ve pushed for three years,” House Speaker Matt Ritter, D-Hartford, said. “It is really soft income that people did not have to work for. My caucus is probably most unified on the capital gains issue.” Lamont, however, has repeatedly resisted tax hikes, more recently pointing to the state’s rainy day fund of more than $4 billion, a surplus in the current fiscal year of $470 million and billions in federal coronavirus relief funds on the way from Washington. “It just is a reminder of … how much money we have to put to work, why I believe we don’t need any new taxes or tax increases,” the Democratic governor said. Senate President Pro Tem Martin Looney, D-New Haven, said it was premature to discuss a potential budget veto by Lamont if lawmakers pass a budget that includes tax hikes. “That’s jumping way ahead,” he said.
Five things you may have missed
House approves sports betting, online gambling:
The state House of Representatives voted Thursday for the largest expansion of gambling in Connecticut history, paving the way for online casino gaming and sports betting that lawmakers hope to launch in time for the kickoff of the NFL season. The expansion would generate $30 million next fiscal year and reach $83 million annually by 2026. Sports betting would be available not just at the state’s two tribal casinos but at locations operated by the Connecticut Lottery Corp. and online. Betting on in-state college sports would be banned unless those bets were placed as part of a bet on the entire NCAA basketball tournament, for example. Money from expanded gambling would go into the state’s general fund and has not been earmarked for any specific purpose, but millions will be set aside each year to address problem gambling. The state Senate must still agree to the legislation and Gov. Ned Lamont must sign it.
Watered-down zoning reform bill advances: A zoning reform bill cleared the state House of Representatives Thursday but it fell far short of what advocates seeking to address a lack of affordable housing in Connecticut’s well-heeled towns had hoped for. The measure ultimately adopted allows for the construction of in-law apartments statewide and sets new limits on the number of parking spaces developers are required to include on projects — making it easier to build higher-density housing — but local zoning commissions can vote to opt out of the requirements if they meet certain conditions. “The Connecticut House of Representative passed a zoning bill with a grab bag of proposals that, taken together, don’t move the needle on addressing the state’s dual affordable housing and housing segregation crises,” Erin Boggs, executive director of the civil rights group Open Communities Alliance, said after the vote. The measure was opposed by all Republicans and a handful of Democrats. It awaits approval by the state Senate.
Crisis pregnancy centers bill heads to Lamont’s desk: After a yearslong push, legislation targeting deceptive advertising by faith-based crisis pregnancy centers has cleared the state House of Representatives and state Senate and awaits Lamont’s signature to become law. Supporters of the measure say some of the centers, which offer limited medical services, have misleading information on their websites or elsewhere that could confuse or delay women seeking an abortion. “A woman should not be lied to when seeking legal health care in the state of Connecticut,” state Rep. Jillian Gilchrest, D-West Hartford, said. “Reproductive health care is timely, especially when we’re thinking abortion and emergency contraception.” Critics said the measure unfairly targets the centers that do not provide abortions. The bill prohibits deceptive advertisements by the centers or anyone else on their behalf. They could be fined $50 to $500 per violation if they do not correct an issue after receiving notice from a court.
Lamont offers $1,000 bonus for unemployed who head back to work: Seeking to prod the long-term unemployed to head back to work as COVID-19 eases in Connecticut, Lamont plans to use federal coronavirus relief funds to offer $1,000 bonuses to 10,000 people who rejoin the workforce. The bonuses would be paid after eight weeks’ employment at a new job. Lamont said the state currently has tens of thousands of job openings as restaurants, bars and other businesses reopen at full capacity and establishments are having a tough time finding enough workers. “We’re going to pay you … to give you the incentive to get back to work, make sure work is worth your while, make sure that you can afford it, make sure if you need help on transportation, a little bit of extra help on child care, we’ve got the upfront money that allows you to do that,” the governor said.
“Clean slate” bill to erase criminal convictions approved in Senate: The state Senate late Tuesday approved a so-called clean slate bill that would automatically erase certain criminal convictions for those who don’t commit crimes for at least seven years afterward. Republicans opposed the measure, arguing convictions for crimes like stalking and criminally negligent homicide should not be included in the measure. In defense of the bill on the Senate floor, Senate Majority Leader Bob Duff, D-Norwalk, said Democrats were not condoning the crimes. “This bill simply is about whether we believe someone who has paid the price … deserves to have a second chance,” he said. A criminal conviction can serve as a barrier to employment or housing, supporters said. Convictions for major crimes like murder, along with family violence crimes and those requiring registration as a sex offender, would not be erased. The state House of Representatives must now consider the bill.
Odds and ends
Dr. Andrew Agwunobi, the chief executive officer of UConn Health, has been named UConn’s interim president after President Thomas Katsouleas resigns at the end of June. He will maintain his position overseeing the health center while the university’s board of trustees conducts a search for a permanent successor. “He is bold when boldness is needed, cautious when caution is the wisest choice, and methodical in all things,” trustees Chairman Daniel Toscano said. … Sen. Richard Blumenthal and Attorney General
William Tong visited the White House Thursday to attend a bill signing ceremony for the COVID19 Hate Crimes Act. The legislation addresses the rise of hate crimes and violence targeting Asian Americans during the pandemic. It passed Congress in a bipartisan fashion. “Vile and racist scapegoating put American families like mine in danger, and those responsible must be held accountable,” Tong said. … President Joe Biden delivered the commencement address at the Coast Guard Academy in New London Wednesday, telling 240 graduating cadets that their service would be needed more than ever as the country faces evolving threats like climate change, pandemics and growing superpowers in other parts of the world. “We’re at a significant inflection point in world history,” he said. Biden gave shoutouts from the stage to Lamont as well as former Connecticut Sen. Chris Dodd. … Geno Auriemma will remain Connecticut’s highest-paid state employee, signing a five-year, $15 million contract extension as head coach of the UConn women’s basketball team. “UConn has been great to me for the last 36 years and I look forward to being here for at least a few more years,” the 67-year-old hall of fame coach said. Auriemma was paid $2.8 million in 2020-21 and is set to take home $3.2 million in 2025, when he will be 71. … SEIU 1199 New England has agreed to delay a planned strike by thousands of group home workers it represents that are seeking better wages, health care and staffing. The strike had been scheduled to begin on Friday, but top aides to Lamont asked for a delay to give more time for negotiations. “We look forward to discussions with Gov. [Ned] Lamont about providing a level playing field for workers and their agencies to reach fair contracts,” Rob Baril, president of the union, said. The state earlier in May avoided a planned strike by nursing home workers who are part of the union a day before it was scheduled.