Perillo, McGorty and Kelly comment on Malloy’s plan to hikes taxes

Governor Dannel P. Malloy addressed a joint session of the State House of Representatives today, laying out his vision for the next biennial budget for the State of Connecticut.  State Representatives Jason Perillo(R-113), Ben McGorty (R-122) and State Senator Kevin Kelly (R-21) noted that the budget did nothing to change the administration’s lack of fiscal responsibility by simply increasing taxes on the middle class, and sending the tab for bad financial management to cities and towns.

“With this budget today Dan Malloy is letting us know that he is now just as good at raising local property taxes as he is at raising state taxes,” said Rep. Perillo. “That’s exactly what this budget does by sending cities and towns the bill for a third of teacher pensions, and reforming the Education Cost Share formula so it will shortchange virtually everyone.  The long and short of what we heard today is that this governor’s economic policies continue to fail, so now towns and cities get the bill. It’s a terrible way to govern.”

“This budget disproportionally impacts middle class tax payers by forcing our communities to raise property taxes,” said Rep. McGorty.  “From the elimination of the $200 property tax credit to the inclusion of $250 million we don’t have for the XL Center in Hartford, there isn’t a lot of good news in this budget, and it represents a doubling-down on bad policy.”

“Once again Governor Malloy is looking to balance his budget off from backs of the hard-working middle-class families of Connecticut which now includes the backs of our children, with a $572 million bill on our children’s credit card as a result of his pension deal,” said Sen. Kelly. “The budget relies on $700 million in unrealistic labor savings and includes $632 million in tax increases for the middle-class, most notably the elimination of our property tax credit – which will impact more than 874,000 families.”

The Shelton legislators noted that the budget assumes $1.4 billion in union concessions, similar to Malloy’s failed 2011 budget policy that never achieved the savings. That led to repeated deficits, including the projected $1.7 billion hole for the next fiscal year, and $1.9 billion the year after. The proposal represents a $200 million tax hike and shifts $400 million in teacher pension payments to municipalities.