What Is the Sales Tax in Connecticut

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					FY2008 – FY2009 BIENNIUM
GOVERNOR’S BUDGET




 M. JODI RELL, GOVERNOR
      CONNECTICUT
       February 7, 2007
Introduction

• Over the last two years, the Governor and the General
  Assembly have made major strides in addressing some of
  Connecticut’s long ignored problems
• However, significant issues remain including:
    – Rising property taxes
    – Disproportionate reliance on property taxes to fund education
    – Irresponsible development growth
    – Rising energy prices
    – Healthcare coverage




                                                                      2
Introduction
• The State made a promise to provide 50% of public education costs
     – In 1990, the State paid 46%
     – The State’s share had dropped to as low as 38% in recent years
     – At the same time local property taxes have consistently risen in all Connecticut
       cities and towns
• The State needs to ensure that Connecticut’s children receive an adequate
  education
                                   Percent of Education Costs Assumed by the State

                                  48%
                                        46%
                                  46%
          Percent of Total Cost




                                  44%                 42%
                                                             41%    41%                         41%
                                  42%                                                                  40%
                                               39%                         40%           40%
                                  40%                                             38%
                                  38%
                                  36%
                                  34%
                                  32%
                                  30%
                                        1990   1995   2000   2001   2002   2003   2004   2005   2006   2007

                                                                       Year
                                                                                                              3
Introduction
Governor Rell’s vision for Connecticut continues with this
  biennial budget proposal. It includes:
• Bold steps to revitalize our education system
• Initiatives for property tax reform
• Measures for responsible growth and development within the
  State
• Governor Rell’s 2020 plan and other energy proposals
• Innovative and aggressive approaches to providing healthcare
  coverage



                                                                 4
FY 2007-09 Biennial Budget
• We have fundamental problems with our revenues and
  expenditures. The General Fund is in the hole almost $500
  million
• General Fund revenues are projected to increase only 2%, or
  $315.4 million, in FY08 over FY07 revenues. Reasons for the
  small growth in revenues:
    – Legislatively approved changes to Connecticut’s tax structure
    – Changes in certain federal reimbursement programs
• The slow revenue growth is coupled with a large increase in
  legally required expenditures totaling $807.9 million
• The expenditures that are growing are typically outside the
  administration’s control and include obligations to the pension
  funds, arbitrated raises, benefits, debt service and growth in the
  Medicaid program
                                                                      5
FY 2007-09 Biennial Budget

• Governor Rell is proposing an all
  funds budget of $17.5 billion for                   Growth In State Spending
                                                             All Funds
  FY08 and $18.3 billion for FY09                          By Fiscal Year

• The FY09 all funds proposal
                                                                            Legal
  represents an increase of $866.1       10%                                Expected Use
  million over the recommended level
  for FY08, or an increase of 5.0%       8%                   6.9% 6.7%

                                         6%            5.3%                 5.0% 4.7%
• 72% of the increase is driven by             4.2%
  increases in debt service, employees   4%
  salaries and benefits, pensions        2%
  obligations, Medicaid growth
                                         0%
• 20% of the increase is driven by the          '07 Est.       '08 Fcst.     '09 Fcst.

  Governor’s Education Initiative                             Fiscal Year




                                                                                           6
FY 2008 Budget
                            General Fund Appropriations
                            By Function of Government
                                    Fiscal 2008

                                                          Regulation and
                                General Government          Protection
                                   $550.5 3.4%             $265.8 1.6%

                         Legislative                        Conservation and
                         $75.5 0.5%                        Development $90.3
        Non-Functional                                            0.5%
        $3,348.0 20.5%
                                                                    Health and Hospitals
                                                                      $1,556.3 9.6%
      Judicial
    $504.1 3.1%


     Corrections
    $1,547.4 9.5%
                                                                 Human Services
                                                                 $4,522.1 27.8%

                    Education, Museums,
                        and Libraries
                      $3,833.0 23.5%




                                                                                           7
Disposition of the FY 2007 Surplus

• As of January 22, 2007, the OPM is estimating the surplus
  for the current fiscal year to be $507.8 million
• The current general fund surplus forecast is calculated
  after using approximately $25 million for estimated
  deficiencies, lost lapses, and surplus adjustments. About
  $4.2 million are actual deficiency appropriations under the
  spending cap




                                                                8
Disposition of the FY 2007 Surplus
Governor Rell proposes the use of the balance of the surplus in
 the following ways:
    – Deposit $151.2 million in the Budget Reserve Fund
    – Fund school textbooks and deferred maintenance- $50 million
    – Establish an Other Post Employment Benefit (OPEB) account- $21
      million
    – Fund an Energy Conservation Account- $30 million
    – Carry forward $96.2 million for FY08 expenditures
         Will be used to offset expenditures of $33.2 million in
         Medicaid, $20 million for State employees health services costs,
         and $36 million for debt service
    – Utilize $9.3 million to pay for one-time expenses in FY08
    – Pre-fund the FY09 Teachers Retirement Pension Contribution-
      $150 million
                                                                            9
Expenditure Cap
• Since the cap was adopted, the average growth in spending
  (including Governor Rell’s first two budget years) was 4.8%.
  In the 5 years before the adoption of the constitutional cap on
  spending, the average growth in spending was 10.8%
• For FY08, the expenditure cap will only permit growth of
  3.31%. This is the lowest expenditure cap growth ever
  recorded and well below the average cap growth of 4.84%
  measured over the past fifteen years
• The Governor’s proposed budget represents a blueprint for
  wholesale change in the way the State operates



                                                                    10
Expenditure Cap
• Achieving these goals within the 3.31% permitted growth
  rate is not possible. However, the Governor intends to
  address these issues in a forthright manner while respecting
  the integrity of the expenditure cap
• At the appropriate time and in accordance with the State’s
  Constitution, the Governor will issue a declaration to exceed
  the State’s expenditure cap to address these significant
  reforms




                                                                  11
Education
• Connecticut has reached a critical juncture and we must
  redesign the education system to create the workforce the
  State’s economy will need
• Connecticut needs to address the whole education continuum
  from pre-school through college in order fix the system
• Governor Rell’s budget devotes unprecedented funding to
  programming that will increase achievement, and provide
  students with the education that the State’s economy needs




                                                               12
Education
Recent trends in education funding have shown State support for
 education diminishing and the burden shifting to local property
 taxes


                            Prope rty Tax Burde n and State Support of
                            Education as a Pe rce ntage of Total Public
                                       School Expe nditure s

                           8.0                                                43.0%
                                                               Taxes
                                                                              42.0%




                                                                                      % State Support
                           7.5




                                                                                       of Educ ation
          Property Tax




                                                                              41.0%
            (B illions )




                           7.0
                                                                              40.0%
                           6.5
                                                                              39.0%
                           6.0                                                38.0%
                                                         % State Support
                           5.5                                                37.0%
                                                             of Education
                           5.0                                                36.0%
                                 2000   2001   2002   2003    2004     2005
                                                  Year

                                                                                                        13
Education
• Total new dollars over 5 years will be in excess of $3.2
  billion
• Governor Rell’s education plan increases the Education
  Cost Sharing (ECS) grant by $1.1 billion per year
• Cognizant of the affordability of such a large investment,
  Governor Rell is prudently recommending that the ECS
  increase be phased in over 5 years




                                                               14
  Education

                                            Summary of the Governor's Initiatives Recommendations

                                                                              FY2008       FY2009       FY2010       FY2011        FY2012      Total FY 08-12
Governor's Education Initiative
 Charter Schools (4 year phase in)                                            $3,350,700   $6,388,150   $9,232,225 $12,076,300     $12,076,300    $43,123,675
 OPEN Choice                                                                  $4,904,900   $4,914,992   $4,914,992   $4,914,992     $4,914,992    $24,564,868
 Magnet Schools (4 year phase in)                                             $4,250,000   $8,500,000 $12,750,000 $17,000,000      $17,000,000    $59,500,000
 ECS (5 year phase in)                                                      $205,612,288 $339,828,819 $528,406,683 $757,099,657 $1,102,156,329 $2,933,103,776
 Accountability                                                               $1,425,000   $1,425,000   $1,425,000   $1,425,000     $1,425,000     $7,125,000
 Eliminate Special Education Equity Grant                                    -$4,000,000 -$4,000,000 -$4,000,000 -$4,000,000       -$4,000,000   -$20,000,000
 Fully Fund Special Education Student Based Grant                            $17,953,687 $27,294,951 $27,294,951 $27,294,951       $27,294,951   $127,133,491
 Eliminate Funding for One Time Expenditure in Priority School Dist          -$6,000,000 -$6,000,000 -$6,000,000 -$6,000,000       -$6,000,000   -$30,000,000
 Fund Only Preschool in Priority School District Grant (phase in FY11-FY12)           $0           $0           $0 -$31,377,641   -$62,755,282   -$94,132,923
 Vocational Agriculture Program                                                 $500,000   $1,000,000   $1,500,000   $2,000,000     $2,000,000     $7,000,000
 Connecticut Pre-Engineering Program                                             $63,130      $63,130      $63,130      $63,130        $63,130       $315,650
Total Education Initiative                                                  $228,059,705 $379,415,042 $575,586,981 $780,496,389 $1,094,175,420 $3,057,733,537

Governor's Early Childhood Initiative
 SDE - More Slots (includes scholarships)                                     $11,050,000   $30,500,000   $30,500,000   $30,500,000   $30,500,000   $133,050,000
 SDE - Staff Bonuses                                                              $75,000      $150,000      $150,000      $150,000      $150,000       $675,000
 SDE - Facilities Technical Assistance/Predevelopment Funds                      $450,000      $600,000      $600,000      $600,000      $600,000     $2,850,000
 SDE - Data Collection/Analysis, Quality Rating, Planning, New Entity, etc     $1,000,000    $1,000,000    $1,000,000    $1,000,000    $1,000,000     $5,000,000
 SDE - Bureau Chief for Early Education - new position                           $120,000      $120,000      $120,000      $120,000      $120,000       $600,000
 Treasurer - Debt Service                                                      $2,000,000    $4,000,000    $4,000,000    $4,000,000    $4,000,000    $18,000,000
 DSS - Program Equilization                                                    $2,160,000    $4,460,000    $4,460,000    $4,460,000    $4,460,000    $20,000,000
 DHE - Workforce Development - Scholarships                                      $381,000      $930,000      $930,000      $930,000      $930,000     $4,101,000
 DHE - Workforce - Loan Reimbursement                                             $58,000      $162,500      $162,500      $162,500      $162,500       $708,000
 DHE - Workforce - Minority Teacher Incentive Program                             $56,000      $140,000      $140,000      $140,000      $140,000       $616,000
 DHE - Collaborative Support & New Higher Ed Programs                            $538,000    $1,575,000    $1,575,000    $1,575,000    $1,575,000     $6,838,000
 DMR - Birth to Three Program Expansion                                          $913,507    $1,267,912    $1,267,912    $1,267,912    $1,267,912     $5,985,155
Total Early Childhood Initiative                                              $18,801,507   $44,905,412   $44,905,412   $44,905,412   $44,905,412   $198,423,155

Total                                                                        $246,861,212 $424,320,454 $620,492,393 $825,401,801 $1,139,080,832 $3,256,156,692




                                                                                                                                                              15
  Education

   The State’s largest communities will all receive noteworthy
    increases in their grants
      THE TOP TEN: COMMUNITIES THAT GET THE MOST ADDITIONAL ECS FUNDING

                SFY 2007             RECOMMENDED FUNDING FOR THE FIVE YEAR PHASE IN               Change
                Entitlement      FY08        FY09        FY10          FY11         FY12        FY 07:FY 12
Bridgeport       147,107,433   164,207,507 175,719,316 189,819,642  206,941,319  232,834,123     $85,726,690
Waterbury         97,808,233   112,298,344 122,053,120 134,001,331  148,509,748  170,450,566     $72,642,333
New Haven        128,491,056   138,518,140 145,268,395 153,536,496  163,576,247  178,759,182     $50,268,126
Hartford         170,113,053   180,003,258 186,661,367 194,816,602  204,719,302  219,694,976     $49,581,923
New Britain       64,119,355    72,538,651  78,206,540  85,148,897   93,578,829  106,327,264     $42,207,909
Meriden           46,584,133    52,888,786  57,133,092  62,331,763   68,644,380    78,190,838    $31,606,705
Bristol           35,390,494    41,111,508  44,962,908  49,680,324   55,408,566    64,071,283    $28,680,789
Danbury           17,588,819    23,078,118  26,773,527  31,299,876   36,796,110    45,107,965    $27,519,146
East Hartford     35,150,730    40,580,436  44,235,727  48,712,937   54,149,503    62,371,123    $27,220,393
Stamford           5,885,766    11,083,569  14,582,742  18,868,731   24,073,100    31,943,575    $26,057,809




                                                                                                         16
Education


                NOT JUST THE LARGE CITIES BENEFIT WITH ADDITIONAL ECS FUNDING



Town               SFY 2007                  RECOMMENDED FUNDING FOR THE FIVE YEAR PHASE IN                      Change
Name               Entitlement       FY08           FY09           FY10             FY11            FY12        FY 07:FY 12
West Hartford     $ 11,372,329   $ 15,738,339    $ 18,677,547   $ 22,277,658   $   26,649,184   $ 33,260,164    $21,887,835
Stratford         $ 16,614,626   $ 20,562,332    $ 23,219,936   $ 26,475,123   $   30,427,817   $ 36,405,403    $19,790,777
Windham           $ 21,238,624   $ 23,948,018    $ 25,771,989   $ 28,006,092   $   30,718,910   $ 34,821,454    $13,582,830
South Windsor     $ 10,243,540   $ 12,517,506    $ 14,048,345   $ 15,923,405   $   18,200,244   $ 21,643,466    $11,399,926
Vernon            $ 15,445,222   $ 17,433,059    $ 18,771,276   $ 20,410,401   $   22,400,750   $ 25,410,718    $ 9,965,496
Rocky Hill        $ 2,245,446    $   3,133,387   $ 3,731,151    $ 4,463,326    $    5,352,389   $   6,696,902   $ 4,451,456
Oxford            $ 3,876,807    $   4,439,180   $ 4,817,771    $ 5,281,491    $    5,844,574   $   6,696,115   $ 2,819,308
Madison           $ 1,109,520    $   1,655,375   $ 2,022,846    $ 2,472,946    $    3,019,490   $   3,846,020   $ 2,736,500
Salem             $ 2,769,446    $   3,041,368   $ 3,224,426    $ 3,448,647    $    3,720,912   $   4,132,654   $ 1,363,208




                                                                                                                        17
Education
Details of the ECS changes are as follows:
    – The ECS cap is eliminated in the first year
    – ECS Foundation will increase from $5,891 to $9,687
    – State Guaranteed Wealth Level (SGWL) will increase
       from 1.55 to 1.75
    – Minimum Aid Ratio will increase from 6% to 10%
    – Resident Students will not include students from magnet
       schools
    – Need Students – Use updated and current data
    – Increase weighting for limited English proficiency
       students
    – Supplemental Formula Aid and Density Aid will be
       eliminated
    – All communities get at least a 3% increase
                                                                18
Early Childhood Education
Phased in universal preschool for 13,000 children from low-
  income families
     – Governor Rell is recommending that $11.1 million in
       FY08 and $30.5 million in FY09 will be invested to
       subsidize about 4,100 pre-school slots
     – $4 million over the biennium will be used to support the
       construction of 4,000 placements
     – $1 million for a comprehensive data registry for all of
       the preschool centers
     – Equalize DSS child care center rates to SDE rates as
       long as DSS centers meet SDE standards


                                                                  19
Early Childhood Education
• Governor Rell is proposing a significant expansion of the
  Birth to Three program. The program is expected to cost:
    – $900,000 in FY08
    – $1.2 million in FY09
• This expansion will provide eligibility for very low birth
  weight babies, babies born at fewer that 28 weeks, children
  with significant delays in speech or biological risk factors, and
  children with mild or unilateral hearing loss
• This funding will provide early intervention and make a
  meaningful difference in the life of a child



                                                                  20
Education
• Governor Rell is proposing $1.1 million in FY08 and $3 million
  in FY09 for a series of education initiatives for early childhood
  workers
• Governor Rell is supporting a series of initiatives to reduce
  racial isolation and improve urban education
    – $4.9 million in both FY08 and FY09 to increase financial incentives for
      the OPEN Choice program
    – $3.3 million for FY08 and $6.4 million for FY09 to phase in the
      increase to the per child charter school subsidy from $8,000 to around
      $10,600 per student
    – $4.2 million for FY08 and $8.5 million for FY09 to phase in over four
      years an increase to the per child magnet school subsidy



                                                                           21
Education
• With $1.4 million in each year of the biennium, the
  Department of Education (SDE) will begin to implement a new
  accountability system
• SDE will take on a new leadership role, empowered to require
  school districts to undertake initiatives that will increase
  student achievement
• SDE will develop new State benchmarks for both academic
  and behavioral accountability
• Using these benchmarks the State will intervene when schools
  and districts under perform



                                                                 22
Education Accountability
• If the State Board so orders, districts where more than 30% of students are
  below proficiency standard would be required to create a full day
  kindergarten program
• Require primary school students to be proficient in math and reading or a
  district will be required to provide a summer school opportunity. Children
  should not be allowed to fall behind
• Increase graduation requirements to four years of math, three years of
  science
• High school graduation requirement - passage of Connecticut Academic
  Performance Test (CAPT) or SDE approved alternative
• If a local school failure continues, SDE will be empowered to:
     – Redeploy personnel within the district
     – Replace school leadership
     – Reconstitute school
                                                                                23
Education
By fully funding the main special education grant, Excess Costs-Student
  Based, a grant based on 4.5X the usual cost of educating a child in a
  community, Governor Rell is significantly increasing the State’s financial
  commitment to children with special education needs. With the
  recommended level at $133 million in FY09, the funding for special
  education will have almost doubled since 2005.

                                                   History of State Spe cial Education Funding
          Sp e ci a l E d uca t i on Fund i ng




                                                 140.0
                                                 130.0
                                                 120.0
                                                 110.0
                      (Mi l l i ons)




                                                 100.0
                                                  90.0
                                                  80.0
                                                  70.0
                                                  60.0
                                                  50.0
                                                  40.0
                                                      00

                                                             01

                                                                    02

                                                                           03

                                                                                  04

                                                                                         05

                                                                                                06


                                                                                                     20 07

                                                                                                            c

                                                                                                            c
                                                                                                          Re

                                                                                                          Re
                                                    20

                                                           20

                                                                  20

                                                                         20

                                                                                20

                                                                                       20

                                                                                              20

                                                                                                        20

                                                                                                       08

                                                                                                       09
                                                                                                     20


                                                                                        Year
                                                                                                                24
Higher Education
• Governor Rell does not want money to be a barrier to student
  access to higher education. Therefore, she is recommending $25
  million in additional student financial aid for both public and
  private colleges
• This amounts to a landmark 77% increase in the CICSG and
  CAPCS scholarship programs
• $12.2 million in new funding for the Connecticut Independent
  College Student Grant will produce another 3,600 awards at the
  same level or an increase in current award levels
• $12.8 million in new funding for the Connecticut Aid for Public
  College Students could mean another 9,800 awards or an increase
  in current award levels
                                                                 25
Eliminating the Car Tax

The current local system of taxing personally used motor
  vehicles is unfair as:
• The same vehicle is taxed at different rates in different towns
• Owners of luxury cars located in smaller towns pay less than
  owners of older vehicles who live in larger cities



          The Car Tax                         The Car Tax
    Inequity Between Towns             Inequity Between Vehicles
     Town     Car Value    Tax      Town          Model            Tax
    Waterbury $20,000     $777     Hartford 2001 Chevy Cavalier   $238
    Prospect $20,000      $336    Greenwich 2006 Mercedes-Benz    $219
   Difference             $441    Difference                      $19




                                                                         26
Eliminating the Car Tax
• Governor Rell proposes to begin the elimination of this
  unfair tax in 2007
• Will apply to local property taxes on non-commercial,
  privately owned or leased passenger cars, light duty
  trucks, pick up trucks and motorcycles
• Tax will be phased out over 5 years
• Net assessments reduced:
    –   By $1,500 with July 2007 tax bill
    –   By $3,200 with July 2008 tax bill
    –   By $4,900 with July 2009 tax bill
    –   By $6,700 with July 2010 tax bill
    –   Eliminated completely by July 2011


                                                            27
  Eliminating the Car Tax
• Municipalities will be reimbursed based on a 100% collection rate for
  revenues lost by eliminating this tax. A few municipalities collect 100% and
  some cities are as low as the mid 80’s%
• How will we pay for it?
     – Casino revenue will pay for this. For the first 4 years, the Casino
       revenue received will cover the cost of this program. Each year some of
       the Casino revenue will be deposited into the Casino Assistance
       Revenue (CAR) Fund and used to reimburse municipalities for lost
       revenue
     – By year 5 ALL Casino revenue will be deposited into the CAR Fund
     – If the Casino revenue is not sufficient, it will be supplemented by a
       General Fund transfer
     – As more Casino revenue is intercepted each year, the loss of General
       Fund money will be offset by a phase out of the property tax exemption
       on the Connecticut income tax
                                                                                28
Eliminating the Car Tax

 Governor Rell proposes to protect our senior citizens by:
 • Allowing those who are 65 years or older and who are
   single filers, heads of household or joint filers (where one
   is at least 65) to continue to get the full property tax credit
   on their Connecticut income tax returns, and
 • Also benefit from the elimination of the car tax




                                                                     29
Eliminating the Car Tax
• Municipalities would continue to receive the $86.25 million
  they currently receive via the Mashantucket Pequot and
  Mohegan Fund grant
• Governor Rell’s proposal:
      – Eliminates an inefficient, inequitable and regressive tax
      – Provides an improved replacement revenue stream to keep
        municipalities whole
      – Provides for significant property tax relief for virtually all
        Connecticut taxpayers




                                                                         30
Pensions
State employee and teachers retirement systems include payments
equal to 100% of what is actuarially required

                                     Connec tic ut Teac hers Retirement Sy stem As of 6/30
                   $7.5                                                                                     85%
                                                                       81%

                                                                                                    6.9     80%
                   $6.5         Unfunded Pension
                                                                                  76%
•                               Funded Ratio
                                                                                                            75%
                   $5.5
                                                           70%
                                                69%




                                                                                                                  Funded Ratio
                                     68%                                                   5.2              70%
                          67%
        Billions




                   $4.5                                                                     65%
                                                                                                            65%

                   $3.5                                                                             60%
                                                                                                            60%
                                                            3.2                   3.3
                                                 3.0
                   $2.5
                                     2.6                                                                    55%
                          2.4
                                                                       2.2
                   $1.5                                                                                     50%
                          1992      1994       1996        1998       2000       2002      2004    2006 *
                                               Ac c rued Unfunded Ac tuarial Liabilities

                             * TRB c hanged assumptions based on the 5 y ear Experienc e Study .




                                                                                                                                 31
State Employees
• The State of Connecticut has thirty-one different contract
  agreements in place with State employee bargaining units
• Thirteen bargaining units have contracts that expire on June 30,
  2007. They represent 28.3% of the State’s full time unionized
  employees
• Another four bargaining units have contracts that expire on June
  30, 2008
• Funds to cover projected pay increases for the unsettled years for
  these bargaining units have been provided for in the reserve for
  salary adjustment account (RSA)




                                                                       32
Responsible Growth
• October 6, 2006 – Governor Rell issued Executive Order #15 to
  establish the Office of Responsible Growth in OPM
• Demonstrates Governor’s understanding that housing, economic
  development, transportation, brownfield remediation, public
  health and open space and farmland preservation are all
  interrelated
• Governor’s budget provides for:
  - Enhanced Planning at State, regional and local levels
  - Enhanced Education of local officials
  - Enhanced Tools to implement Responsible Growth Policies
  - New and enhanced Policies to promote Responsible Growth

                                                                33
Responsible Growth

Enhanced Planning:
• Increases annual OPM grant to Regional Planning
  Organizations to $1.2 million
• Provides $1.5 million in FY08 and $105,000 in FY09 to DEP
  for enhanced Geospatial Imaging System use
• Provides $1 million annually for municipalities to update
  local Plans of Conservation and Development
• Creates a Responsible Growth Task Force to develop
  standards and criteria



                                                              34
Responsible Growth
Enhanced Tools:
• Increases annual funding for the Recreation and Natural
  Heritage Program to $10 million
• Increases annual funding for the Open Space Acquisition Grant
  Program to $10 million
• Increases annual funding for the Farmland Preservation
  Program to $10 million
• Increases annual Clean Water Funding to $70 million in
  General Obligation bonds and $175 million in revenue bonds
• Provides $20 million in FY09 for a Responsible Growth
  Incentive Fund
                                                               35
Responsible Growth
Enhanced Policies
• In FY09 Urban Act and STEAP funding for Economic Development
  projects must meet Responsible Growth criteria (unless waived by Bond
  Commission)
• In FY09, all bond funded projects (except school construction) must be
  consistent with the State Plan of Conservation and Development (unless
  waived by the Bond Commission)
• In FY09, municipalities who have not reviewed their local Plans of
  Conservation and Development will be ineligible for discretionary State
  funding (unless waived by Secretary of OPM)
• In FY09, Regional Planning Organizations will have notice and opportunity
  to comment on development projects or land use regulatory changes that
  have a significant regional impact
• Existing Brownfield funding programs will be consolidated and process
  expedited. Criteria and an inventory of sites will be developed

                                                                            36
Transportation

Rail Service and Facilities
• Enhanced Shore Line East service starting in 2008
    – Weekend service (eight round trips per day)
    – Weekday mid-day and evening service

• Twenty four additional M8 electric rail cars
    – Twelve each for New Haven and Shoreline East
    – In addition to 342 cars previously authorized




                                                      37
Transportation
Rail Services and Facilities
•   New Stamford Rail Station Parking Garage - $35 million
•   Rail Station Capital Improvement Fund - $5 million
•   New London Transportation Center Planning Study
•   Shore Line East station and parking improvements
      – Branford, Clinton, Madison, Guilford and Westbrook
      – Funded from 2006 initiative
• Governor has directed DOT and other State agencies to
    expedite the development of one or more stations between New
    Haven and Milford
• Bus Transit
      – Additional matching funds provided to allow local transit operators to access
        additional federal funds

                                                                                        38
Transportation
• Bridges
    – $20 million in each year of the biennium to expedite priority bridge repair
      and rehabilitation projects

• Southeast Tourism Circulator System
    – $3 million is included in each year of the budget to help fund a two year
      pilot of a shuttle bus service designed to serve visitors to tourism venues
      and casinos
    – State share can not exceed 50% of the cost of the pilot

• Bus Fare Increase
    – Bus fares will increase from $1.25 to $1.50 for zone-one fares
    – Effective October 1st
    – Will generate about $4.4 million in FY08 and $6.5 million in FY09

                                                                              39
Economic Development, Housing and Brownfields

Southeastern Connecticut Initiatives
    – $10 million for the economic diversification revolving loan
      program
    – $500,000 in each year of the biennium for a Defense/Homeland
      Security Incubator in southeastern Connecticut
    – $200,000 in each year of the biennium for the first two years of a
      three year effort to develop a Southeastern Connecticut economic
      development marketing plan




                                                                           40
Economic Development, Housing and Brownfields
 Housing
    – $15 million in bonding in each year of the biennium for housing
      programs. This funding is in addition in funding available under
      the Housing Trust Fund program and approximately $40 million
      that is already authorized to fund various other housing
      programs
    – $1 million to address lead paint in State assisted housing
      developments
    – $400,000 in each year of the biennium to address program
      shortfalls in the Elderly Rental Assistance Program, which
      provides rent subsidies to qualified residents of State elderly and
      disabled housing




                                                                            41
Energy
In September of 2006, Governor Rell unveiled Connecticut’s
   Energy Vision as a call to action to address the intense concerns
   over the future of energy prices and supply that have developed
   over the last several years
There are 4 majors elements of the Governor’s plan:
• Achieving immediate cost reductions for consumers
• Re-emphasizing the role of energy efficiency
• Making Connecticut a leader in promoting and using alternative
  and renewable energy technologies and conservation
• Better coordination and integration of energy policy
  development and planning
                                                                  42
Energy

Governor Rell proposes several initiatives aimed
 toward achieving immediate cost reductions
 for consumers:

• Create an Electric Conservation Incentive Program
  which will provide residents an incentive of up to
  $200 if they reduce their annual electricity usage by
  18%
• Eliminate the sales tax surcharge on businesses when
  their usage exceeds $150 per month
• Cap the Petroleum Gross Receipts Tax, based on the
  wholesale price of $1.75 per gallon


                                                          43
Energy
 Governor Rell proposes several initiatives to encourage and re-
  emphasize the role of energy efficiency
 • Restores full funding of the Renewable Energy Investment
   Fund and the Energy Conservation and Load Management
   Fund - $35 million
 • Extends the current sales tax exemption on weatherization
   products until 2010
 • Extends the current sales tax exemption for hybrid vehicles
 • Creates an immediate property tax exemption for hybrid
   vehicles


                                                                 44
Energy
 Governor Rell proposes several initiatives to make
  Connecticut a leader in promoting and using alternative
  and renewable energy technologies
 • Promote development of the biofuels industry by
   providing incentives to:
     – Promote local production of biofuel crops
     – Develop an in-state biofuels production facility
     – Petroleum distributors to blend and utilize biofuels

 • Broaden “green building” standards to include local school
   projects funded with State funds



                                                                45
Energy

Governor Rell proposes:
• A new State Department of Energy which will assist the
  Governor in formulating a comprehensive, statewide energy
  policy
• An integrated resource planning process
• Reducing utility regulators at DPUC from 5 down to 4
• Transferring consumer complaint responsibility to Office of
  Consumer Counsel




                                                                46
Health Care
Governor’s Health Care Initiative – The Charter Oak Plan
    – The Governor’s innovative Charter Oak Health Plan is aimed at
      providing access to affordable health insurance for those who
      currently have little or no access to it
    – Under this plan, the administration will work with health insurance
      carriers to develop an affordable, accessible product expected to cost
      $250 a month
    – The product will provide basic health insurance coverage, including a
      full prescription package
    – The Governor is developing a sliding-scale financial assistance
      program to buy down the premium to as low as $75 per month for
      low-income adults
    – The Governor’s budget contains $18.9 million in FY08 and $36.1
      million in FY09 for this initiative which is expected to annualize at
      $45 million in FY10


                                                                               47
Health Care
Governor’s Health Care Initiative -- Maximizing the
 HUSKY Benefit
• HUSKY Enrollment at Birth. All children who are not otherwise
  insured will be enrolled in HUSKY at birth and, if a family’s income is
  high enough to require a monthly premium, the State will waive the
  premium for 2 months
• HUSKY School Enrollment. Require notification about children’s
  insurance coverage at the start of every school year to help school
  systems refer families
• $1 million in each year of the biennium is dedicated to these enhanced
  outreach initiatives, including funding for 211 Infoline and for RESC
  training on benefits and referrals
• Outreach efforts are anticipated to increase HUSKY costs by over $8
  million in FY08 and over $13 million in FY09
• “No adverse change” legislation to eliminate fluctuations in benefits and
  coverage over the biennium

                                                                              48
Health Care

Governor’s Health Care Initiative
• The Governor is also taking a strong stand with respect
  to the need for the HUSKY MCOs to open their
  records to public scrutiny. The Governor is proposing
  legislation that will require any new, amended, or
  extended MCO contracts to require the MCO to
  comply with the State’s FOI laws
• $2 million for disease management initiative to
  improve health outcomes and prevent or manage
  chronic diseases such as hypertension, obesity,
  diabetes and asthma. The funding includes $500,000
  for the statewide expansion of DPH’s “Easy
  Breathing” program

                                                            49
Health Care

Premium Assistance
• The Governor will propose legislation to allow DSS to assist
  HUSKY A clients with enrollment in their employers’ health plans,
  when available
• DSS will do this by developing a “wrap-around” program that will
  coordinate coverage between Medicaid and the employer-
  sponsored insurance, assuring no loss of benefits or additional
  expense for the client
• This premium assistance program will reduce Medicaid
  expenditures by ensuring employers contribute to health care
  coverage for the employed HUSKY A population, just as they do
  for their other employees
• $4.9 million projected savings in FY09

                                                                      50
Health Care

Investing in the State’s Community Health Centers
• The Governor initiated a major investment in community
  health centers with an October 2006 Bond Commission
  authorization of $25.8 million to expand medical and
  dental facilities across the State
• This capital investment means that community health
  centers will be able to serve an estimated 85,000 new
  patients with primary and specialized health care, thereby
  reducing the burden on hospital emergency departments




                                                               51
Health Care
Cancer Treatment Initiatives
• In FY07, $5.5 million was allocated from the Tobacco and Health
  Trust Fund for the comprehensive cancer plan, and those funds will be
  available during the biennium to provide for prevention, early
  detection, treatment, awareness and evaluation activities
• In addition, the Governor is devoting more than $6 million over the
  biennium, including $1 million previously allocated from the Tobacco
  and Health Trust Fund, for enhanced support of breast and cervical
  cancer detection and treatment, a new colorectal cancer screening
  initiative, and additional “quit-line” smoking cessation services
• Finally, the Governor is proposing an increase in the cigarette tax from
  $1.51 per pack to $2 per pack. Increasing the tax is one of the most
  effective methods of stopping children from becoming addicted to
  cigarettes
     – For every 10% increase in price there is a 3 - 4.5 % decrease in sales


                                                                                52
Human Services
To invest in the health and well-being of Connecticut’s most
  vulnerable citizens, Governor Rell proposes providing new
  resources for:
• A variety of federal waivers and grants, including HIV/AIDS, Multiple Sclerosis,
   Money Follows the Person, nursing home services for the mentally ill, and
   family planning services. $8.7 million in FY08 and $29.1 million in FY09
• Additional staff and $1 million in operating resources for the new $33.8 million
   state-of-the-art veterans’ health care facility, scheduled to open in January 2008,
   and the existing veterans’ residential facility in Rocky Hill
• An increase in benefits for burial expenses for veterans without a sufficient
   estate, extending the tuition waiver benefit to dependent children and surviving
   spouses of veterans killed in action since 9-11-01 and prohibitions against
   mortgage foreclosure and adverse credit reporting
• $1.2 million in each year of the biennium for DMHAS to discharge persons from
   hospitals into community services
• $2.9 million in FY08 and $4.9 million in FY09 for young adults aging out of
   DCF services into the DMHAS service system

                                                                                         53
Human Services
Continued Support for the Department of Children and
 Families
• Governor Rell continues important program expansions to facilitate the
  exit from the Juan F. consent decree, fully fund the Emily J. settlement
  agreement, and annualize new juvenile justice programs
• In FY08, $65.4 million is added to DCF’s budget to fully annualize these
  initiatives
• Additional funding of $5.3 million in FY08 and $7.7 million in FY09 for
  new initiatives, including:

     – Expansion of Emergency Mobile Psychiatric Services and intensive in-
       home behavioral health services
     – Development of a pilot program to serve families that include a parent with
       cognitive limitations
     – Increased foster care family recruitment and support
     – Replacement of an aging information technology system
                                                                                     54
Human Services
 Significant investment in Connecticut’s children is shown as the DCF
 budget doubles from FY00 to FY09
                      DCF EXPENDITURES ($ in millions)
   $1,000

                                                                                                 906.9
     $900                                                                               871.9

                                                                               796.6
     $800
                                                                      729.4

     $700                                                    668.1

                                                 607.5
     $600                               565.5
                               538.8

                      478.9
     $500
             447.5


     $400


     $300


     $200


     $100
              00       01       02       03       04          05       06      07 Est   08 Rec   09 Rec

   Series1   $447.5   $478.9   $538.8   $565.5   $607.5      $668.1   $729.4   $796.6   $871.9   $906.9

                                                    FISCAL YEAR
                                                                                                          55
Human Services

Continued support for the DMR Waiting List Initiative
Governor Rell proposes $21.3 million in FY08 and $18.6 million in FY09 to
  address persons on the waiting list and other DMR clients. Funding
  includes:
• $8.8 million in FY08 and $9 million in FY09 to fund 150 new placements
  each year for persons on the DMR waiting list and annualize the previous
  year’s placements, and
• $12.5 million in FY08 and $9.5 million in FY09 to fund discretionary
  caseload growth, including:
     – Funding for 135 high school graduates in FY08 and 123 graduates in FY09;
     – Funding for 73 young adults aging out of DCF or educational placements in
       FY08 and 69 young adults aging out in FY09;
     – 15 voluntary services referrals in both FY08 and FY09; and
     – Annualization of FY07 program

                                                                                   56
Human Services
 Governor Rell continues a significant investment in providing
 critical services to Connecticut citizens with mental
 retardation

                       DMR Expenditures ($ in millions)

   $1,000

                                                                       906.9
    $800                                                     871.9
                                                    796.6
                                            729.4
    $600                            668.1
                            607.5
                    565.5
            538.8
    $400


    $200
             02      03      04       05     06     07 Est   08 Rec   09 Rec
                             FISCAL YEAR




                                                                               57
Human Services
Private Provider Low Wage Pool
• The Governor believes it is time to address significant wage disparities
  between employees of the State’s long-time service providers and those
  employed under newer contracts
• Because cost of living adjustments have not kept pace with wage inflation,
  long-time providers have not been able to match salaries offered by
  providers who enter into new contracts with the State
• As a result, the Governor is proposing $15 million for FY08 and $17
  million for FY09 for a low wage pool that will allow human services
  agencies to bring wages for providers whose employees are determined to
  be “low-wage” up to the median for all providers of similar services

                 Illustrative Low Wage Pool Data
                                                       Sample Hourly Wage
                                                    High      Low      Median
                 Child Care Worker                 $ 15.89   $ 10.44    $ 13.45
                 Mental Retardation Worker (CLA)   $ 17.46   $   9.70   $ 13.22
                 Social Worker                     $ 30.30   $ 16.92    $ 21.43


                                                                                  58
Reconfigure Funding Sources for Arts, Culture and
Tourism Grants
• Increases total resources through new “Cultural
  Treasures” program
• Create a more equitable way of distributing arts,
  culture and tourism funding
• Specific earmarks will be phased out
• Organizations that were automatically supported by
  funding will now compete for Cultural Treasures
  funding of $5 million in FY08 and $10 million in
  FY09

                                                       59
Judicial

• $3.5 million each year in the Judicial Department’s budget to
  implement Families with Service Needs (FWSN) Diversion
• Development of 3 six-bed residential sites in the community
• Development and implementation of family support centers
• Expansion of respite care




                                                                  60
Public Safety
• Redeploying 34 Experienced State Troopers
     – At a net General Fund cost of $250,000, redeploy troopers from DEMHS and
       State Weigh Station duties to traditional trooper duties
• Additional Trooper Training Classes
     – To maintain the 1,248 State trooper level, provide funding to DPS to conduct 2
       trooper training classes in FY08
• Weigh Station Operations/Truck Safety
     – Consolidate operations under DMV by transferring 11 DPS Inspectors to DMV,
       reassigning 21 troopers to traditional trooper duties
     – Consolidation will increase inspection hours by 31% and significantly enhance
       the detection of unsafe trucks on our roads
• Urban Youth Violence Prevention Grants
     – $4 million to provide grants to cities to develop programs with the highest
       potential for benefit to the community



                                                                                     61
Making Government Work (Online Licensing)
• Board of Accountancy
    – Online licensing renewal system ready for next calendar year cycle

• Department of Public Health
    – $1.2 million in FY09 for web-based licensure of health care
      professionals

• Department of Consumer Protection
    – All license types on line in 6-8 months

• Department of Motor Vehicles
    – Enhance Real-Time-On-Line Registration initiative to benefit
      customers and law enforcement




                                                                           62
Making Government Work


 • Office of State Ethics: Enhanced Enforcement
  Division and IT systems
 • State Elections Enforcement Division: Continued
  reinforcement of campaign finance reform
 • Freedom of Information: Enhanced complaint
  processing and resolution capabilities




                                                     63
Making State Government Work (Contracting Standards Board)

 • Governor created the advisory State Contracting Standards Board
   by Executive Order in 2005 to reform the State procurement
   system
 • Board developed a Uniform Procurement and Contract Code for
   State Agencies and is implementing with Commissioners
 • Board has also proposed legislation containing major
   organizational recommendations that will:
     –   Establish a statutory Board as centralized policy/oversight body
     –   Create standardized procurement education/training programs
     –   Set forth Board enforcement authority over State agencies
     –   Establish State agency process for procurement of services
     –   Certify State agency compliance with Procurement/Contract Code
     –   Require CHRO monitor process for evidence of discrimination

                                                                            64
Capital Investments
Judicial Capital Investments include:
    – $10 million in bonding over the biennium to fund capital improvements
      to courthouses
    – $2 million over the biennium for security improvements
    – $8.5 million over the biennium to continue much needed information
      technology improvements in the Judicial Branch
    – An additional $25.3 million is included to fully fund the new
      Torrington courthouse
    – $5 million to begin planning and land acquisition for a new courthouse
      in Bridgeport to replace the aged and outdated Golden Hill Geographic
      Area courthouse and to relieve overcrowded conditions at the Judicial
      District courthouse on Main Street
    – $13 million to begin the renovation and restoration of the historic Elm
      Street courthouse located on the green in New Haven

                                                                            65
Capital Investments

School Construction
• By far the largest capital expenditure of the State
• New authorizations of $669.4 million in each year of
  the biennium




                                                         66
Capital Investments
Higher Education
• The Governor’s proposed biennial budget continues her
  commitment to improving the physical condition of our State
  Universities and Community Colleges by recommending new
  authorizations of approximately $95 million in FY08 and $60
  million in FY09
• Major new authorizations include but are not limited to:
    – $21.5 million for Gateway CTC
    – $21.5 million for various improvements at SCSU
    – $12.2 million for various improvements at CCSU
    – $5.1 million for the completion of the Three Rivers CTC project



                                                                        67
Controlling Debt
• The Governor is recommending that the legislature amend the
  UCONN 21st Century statute to reduce the level of bonding that
  the University automatically receives in each fiscal year, not by
  reducing the total commitment but by reducing the allocation in
  each year and extending the program one year to FY16
• The modifications begin in FY08 with a small $5 million
  reduction, bringing the total funds authorized in FY08 to $115
  million. In FY09 and on, the University will have a $15 million
  reduction in the annual authorization, until FY16 when the
  original 20 year commitment will be extended one year with an
  additional $100 million authorization
• In a time when debt service is becoming a growing burden on the
  General Fund, the extra $5 to $15 million will undoubtedly help
  relieve some of the pressure
                                                                 68
Controlling Debt


                        UCONN 2000/21st. Century Bond Authorizations


            $180               Current Law        Proposed Modification

            $160

            $140

            $120
 Millions




            $100

             $80

             $60

             $40

             $20

              $0
                   96


                          98


                                 00


                                       02


                                             04


                                                   06


                                                         08


                                                               10


                                                                     12


                                                                          14


                                                                               16
                                              Fiscal Year




                                                                                    69
 Controlling Debt

• The Governor is also proposing the following initiatives to control future
  capital expenditures in an attempt to reduce the State’s debt going forward
• The proposal is a two-pronged attempt to reduce the State’s overall
  indebtedness due to the local school construction program. The proposal
  includes:
     – Decreasing the State reimbursement percentages for local school construction
       programs from 20% - 80% to 15% - 65%, while capping the magnet school
       reimbursement rate at 80%
     – Placing a $300 million annual cap on the level of State grant commitments for the
       school building priority list beginning with the December 2007 list
• While these changes will not immediately reduce the bonding allocations of
  the State, they will reduce the level of bonding allocations in the future. They
  will also force additional local responsibility in the design and cost of school
  buildings and a more careful prioritization in the compiling of the school
  construction list
                                                                                      70
Revenue
• Governor Rell proposes a phase-out by of the Unified Gift and Estate
  Tax by 2011 beginning with an immediate elimination of the cliff
• When it is completely phased out, Connecticut will join 32 other states
  with no estate tax

                         States with No Estate Tax

                         1.   Alabama      17.   Mississippi
                         2.   Alaska       18.   Missouri
                         3.   Arizona      19.   Montana
                         4.   Arkansas     20.   Nevada
                         5.   California   21.   New Hampshire
                         6.   Colorado     22.   New Mexico
                         7.   Delaware     23.   North Dakota
                         8.   Florida      24.   Oklahoma
                         9.   Georgia      25.   Pennsylvania
                        10.   Hawaii       26.   South Carolina
                        11.   Idaho        27.   South Dakota
                        12.   Indiana      28.   Tennessee
                        13.   Iowa         29.   Texas
                        14.   Kentucky     30.   Utah
                        15.   Louisiana    31.   West Virginia
                        16.   Michigan     32.   Wyoming
                                                                            71
Revenue
• Governor Rell’s education initiative commits $3.2 billion
  over a five year period
• Frankly, this initiative cannot be achieved without increased
  revenues
• To that end, the Governor is recommending an increase in
  the income tax rate from 5% to 5.25% for income year 2007
  and to 5.5% for income year 2008
• This will yield $617.5 million in FY08 and $650.0 million in
  FY09 and thereafter




                                                                  72
Revenue                                  Personal Income Tax
                                     Increase in Effective Tax Rates


                      Single Filer                                      Joint Filer


                         Current      Proposed                             Current    Proposed
                        Effective     Effective                           Effective   Effective
           AGI          Tax Rate      Tax Rate               AGI          Tax Rate    Tax Rate
     $       15,000          0.0%          0.0%         $      15,000          0.0%        0.0%
     $       20,000          0.0%          0.0%         $      20,000          0.0%        0.0%
     $       25,000          0.0%          0.0%         $      25,000          0.0%        0.0%
     $       30,000          1.1%          1.3%         $      30,000          0.0%        0.0%
     $       35,000          2.2%          2.5%         $      35,000          0.0%        0.0%
     $       40,000          2.8%          3.1%         $      40,000          0.0%        0.0%
     $       45,000          3.0%          3.3%         $      45,000          0.1%        0.1%
     $       50,000          3.1%          3.5%         $      50,000          0.7%        0.8%
     $       55,000          3.7%          4.1%         $      55,000          1.5%        1.7%
     $       60,000          3.9%          4.3%         $      60,000          2.2%        2.4%
     $       65,000          4.0%          4.4%         $      65,000          2.7%        3.0%
     $       70,000          4.1%          4.6%         $      70,000          3.1%        3.5%
     $       75,000          4.2%          4.6%         $      75,000          3.4%        3.7%
     $       80,000          4.3%          4.8%         $      80,000          3.4%        3.8%
     $       85,000          4.4%          4.8%         $      85,000          3.5%        3.8%
     $       90,000          4.4%          4.9%         $      90,000          3.5%        3.9%
     $       95,000          4.5%          4.9%         $      95,000          3.6%        4.0%
     $      100,000          4.6%          5.0%         $     100,000          4.0%        4.4%
     $      125,000          4.7%          5.2%         $     125,000          4.4%        4.8%
     $      150,000          4.9%          5.3%         $     150,000          4.6%        5.0%
     $      175,000          4.9%          5.4%         $     175,000          4.7%        5.2%
     $      200,000          4.9%          5.4%         $     200,000          4.8%        5.3%
     $      225,000          4.9%          5.4%         $     225,000          4.8%        5.3%
     $      250,000          4.9%          5.4%         $     250,000          4.8%        5.3%
     $      500,000          5.0%          5.5%         $     500,000          4.9%        5.4%
     $    1,000,000          5.0%          5.5%         $   1,000,000          5.0%        5.5%
     $    2,000,000          5.0%          5.5%         $   2,000,000          5.0%        5.5%

                                                                                                  73
Revenue
• Governor Rell proposes raising the tax on cigarettes from
  $1.51 to $2.00 per pack, effective July 1, 2007
• This will raise an additional $86.4 million in FY08 and
  $82.8 million in FY09
                            Cigarette Tax
                           Selected States
                       (Per Pack of 20 Cigarettes)

                      Rhode Island           $2.46
                      New Jersey             $2.40
                      Washington             $2.03
                      Arizona                $2.00
                      Maine                  $2.00
                      Michigan               $2.00
                      Connecticut            $1.51
                      Massachusetts          $1.51
                      New York *             $1.50

                      * Plus an additional $1.50 per
                        pack in New York City.



                                                              74
Revenue

• Governor Rell also proposes clarifying the Film Industry
  Tax Credit, saving $21 million in each year of the biennium
• Chief among the changes are a $5 million limit on credit
  eligible salaries and an increase in the threshold eligibility
  of the project from $50,000 to $250,000




                                                                   75
Revenue
• Governor Rell is calling for a task force to study and evaluate
  changes needed and potential benefits that Connecticut would
  gain by joining the Streamlined Sales Tax Compact
• It is estimated that the State currently loses $520 million
  annually in sales tax collections from internet and mail order
  transactions
• This area of commerce is growing at double-digit rates
• 15 States have already streamlined their tax codes to comply
  with the Streamlined Sales Tax Compact
• Connecticut needs to fully explore the benefits of such
  changes

                                                                    76
Municipal Aid
Governor Rell is proposing or implementing initiatives
  that will bring additional funding to municipalities and
  tax relief to their residents including:
• Enhanced Educational Funding:
    – ECS increased by $1.1 billion over 5 years
    – Additional funding for school choice and other programs

• Elimination of the Car Tax
    – Municipalities made whole for revenue loss
    – Continuation of Mashantucket Pequot and Mohegan Grant
• Fully fund an expanded Manufacturing Machinery and
  Equipment program
    – $33.9 million more in FY08
    –   $63.2 million more in FY09
                                                                77
Municipal Aid


                                          Municipal Aid
                                         Total Formula Grants
                  $4.0
                                                 (in billions)
                  $3.5
                                                                                         $3.17
Total State Aid




                  $3.0                                                           $2.84

                                                                 $2.41   $2.47
                  $2.5                                   $2.27
                         $2.09   $2.18   $2.18   $2.17

                  $2.0

                  $1.5
                         2001    2002    2003     2004    2005   2006    2007    Rec.    Rec.
                                                                                 2008    2009
                                                  Fiscal Year




                                                                                                 78
Conclusion
 Governor Rell’s plan sets a new course for Connecticut and changes the way
   the State does business in fundamental ways. The proposed budget:
 • Promotes energy conservation and alternative sources of energy in
   meaningful ways
 • Requires real long term planning too long ignored
 • Commits the State to Responsible Growth
 • Guarantees insurance coverage for all newborns in Connecticut
 • Creates a private insurance policy that is affordable to most adults while
   providing premium assistance to those who need help to pay for it
 • Focuses on education like no other Governor before her, providing a
   continuum of education that will insure a vibrant citizenry and competitive
   workforce

                   Connecticut deserves no less.
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posted:7/16/2010
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Description: What Is the Sales Tax in Connecticut document sample