FAIRFIELD COUNTY, Conn. -- Gov. Dannel Malloy outlined an election-year budget proposal in a speech in Derby on Thursday that included a call for tax refunds for Connecticut residents
Malloy made his budget proposal just a week before legislature opens. The three-point plan outlines "responsible fiscal management of the state’s current surplus," a statement said. It would bolster the rainy day fund, make a substantial payment on long-term debt, and provide modest tax relief for residents.
“Connecticut has faced more than its share of challenges over the last few years. Now that things are beginning to improve, it’s critical that everyone shares in the recovery,” Malloy said in a statement.
“The plan I’m laying out today takes the responsible path. It puts money in the rainy day fund so that we can be prepared the next time we face financial challenges. It puts additional money into our pension fund so we can pay down our long-term debt. And it provides a modest refund for residents who have faced more than their fair share of obstacles.”
The governor outlined his three-point plan to manage the state's estimated $505 million surplus in the speech. The most attractive to residents might be a sales and gas tax refund that would net $55 to individuals earning less than $200,000 and $110 to joint filers earning less than $400,000.
Other proposals would be to reinvest the surplus included bolstering the "Rainy Day Fund" by depositing $250 million into the Budget Reserve and paying down long-term debt by making an additional $100 million payment toward the state’s pension fund, which would save tax payers more than $430 million over 20 years, according to the governor's proposal.
Malloy also said he will introduce legislation that would mandate any surplus in future years be used for these three specific purposes.
“The budget proposal we are introducing creates a sustainable budget framework that will enable the state to achieve balanced budgets in the coming years and put our state on a path towards strong financial footing,” Malloy said in a statement. “We are creating a solid foundation that supports necessary services while allowing for potential further reductions in taxes in the coming years.”