Feb 6 Connecticut would increase education
funding without new taxes by slashing $1.8 billion of spending
on services over the next two years, under a budget proposed by
Connecticut's Democratic Governor Dannel Malloy on Wednesday.
Malloy's plan would boost funding for basic education by
$152 million over two years and would invest more than $1.7
billion into the University of Connecticut to expand science,
technology, engineering and math studies and hire 259 new
Many of the cuts are to social service programs, including
hospitals, according to budget documents. The state, like many
others, is facing rising fixed costs for healthcare and
The biennial budget plan would spend $21.5 billion in fiscal
2014 and $22.3 billion in fiscal 2015. Connecticut's
Democrat-led legislature must agree on a budget before the start
of the fiscal year on July 1.
Malloy's plan would also cut some tax levies, eliminating
property taxes on private and commercial vehicles worth less
than $28,500 and reinstating a tax exemption for clothing up to
No city, town or other municipality would see their state
aid drop, and many will receive more than the current fiscal
year, he said.
Malloy also proposed about $5.4 billion of new borrowing
over the two-year plan: $3.1 billion of general obligation
bonds, nearly $1.3 billion of transportation bonds, and $997.4
million of bonds for wastewater treatment systems.
The plan calls for a restructuring of state government with
major consolidations among state agencies.
Revenue growth for the current fiscal year is estimated at
3.9 percent. Growth for 2014 is expected to slow slightly to 3.7
percent and then rebound to 4.7 percent in fiscal 2015,
according to budget documents.