New state program, funded by new employer head tax, looked at by Children's Committee

(Feb. 29, 2008) Would a new, 59th state program be the best way to bring help to special needs children in Connecticut? No, but that’s what the legislature’s Children’s Committee is exploring.

Today, there are 58 state programs — managed by five separate state agencies — already in place for children with special needs.

Yet this week, the committee held a public hearing on a proposal (HB-5498) that would tax all employers in the state in order to pay for a new relief fund for children.

It would be an annual per-employee (“head”) tax on every business in Connecticut — regardless of the company's size or whether or not the business already provides its employees with health benefits.

Instead of creating another program or business tax, lawmakers should review the 58 state programs already dedicated to children and adults with special needs.

The Appropriations Committee is now conducting a performance-based review of a number of state programs to see if they are as effective and efficient as possible. Wouldn’t it be better for the Children’s Committee to do the same thing?

Supporters of the new program and tax say it would have a minimal effect on businesses. But once in place, the tax is likely to be adjusted — upward, to try to bring in more funds as time goes on, with no incentive to make the current programs work better.

CBIA encourages the committee to review the state resources already in place and work to make them more effective in order to ensure the needs of state residents are being met.

For more information, contact CBIA's Eric George at 860-244-1921 or eric.george@cbia.com.