By the Numbers: Governor’s Proposed Budget

Governor Malloy’s $40.6 billion, FY 2018-2019 budget includes the following proposals:

• $1.36 billion in spending cuts for FY 2018, $1.63 billion in FY 2019.
• Increases overall state spending by 0.8% in FY 2018, 1.8% the following year.
  
  

  Connecticut faces a projected $3.6 billion budget deficit over the next two fiscal years.

• $700 million in assumed union concessions for FY 2018, $810 million the following year.
• $828.5 million two-year savings by requiring municipalities to partially fund the teacher retirement system.
• $371.7 million in new revenues from a host of fee and tax increases, including tobacco, gun permits, bottle deposits.
• $210 million in total savings through elimination of the $200 homeowner property tax credit.
• $51 million two-year savings by reducing state Earned Income Tax Credit from 27.5% to 25%.
• $11.9 million in FY 2018 savings by closing one state prison and shuttering four units in other prisons.
• Reduces the 20% corporate tax surcharge, implemented in 2012 as a temporary measure, to 10% for the 2018 income year.
• Cuts the tax on insurance premiums from 1.75% to 1.5%.
• Allows municipalities to levy property tax on the building and land of nonprofit hospitals. The state would offset the tax through supplemental payments to hospitals.