by Christian Wade
Connecticut’s General Assembly passed a $7.5 billion two-year bond package on Wednesday, sending the package to Gov. Ned Lamont’s desk on the final day of the legislative session.
The plan, approved by the Democratic-controlled Legislature on a bipartisan vote, includes borrowing authorization for up to $5 billion for transportation, housing, capital projects and public schools over the next two fiscal years.
More than $1 billion in the bonding bill is dedicated to dealing with the state’s housing crunch, with $810 million authorized over two years to expand affordable housing, encourage home ownership and spur new residential construction. The spending is tied to Lamont’s ambitious housing plan.
Lawmakers also set aside $250 million for municipal school construction and $150 million in the next two fiscal years to help improve air quality in school buildings.
The sprawling University of Connecticut system, which includes four campuses, will receive more than $300 million in bond authorization over the next two years, while other state universities and community colleges will get $310 million.
The plan would also authorize the state government to borrow more for capital projects, including $17 million for renovations and improvements at the Connecticut Convention Center and Rentschler Field and $15 million for the XL Center in Hartford, which is home to the University of Connecticut’s basketball teams.
One provision not included in the final bond bill was borrowing to provide funds for the state’s new “baby bonds” program, which will provide every child born into poverty in the state with a $3,200 savings account to help close a racial wealth gap.
An earlier agreement between Lamont, Treasurer Erick Russell and legislative leaders calls for spending $381 million to get the program going using repurposed surplus revenues. Lamont said the compromise plan would save taxpayers more than $200 million.
The bond bill was approved on the final day of the legislative session amid a flurry of other bills that made it across the finish line and onto Lamont’s desk.
Earlier this week, lawmakers approved a two-year $51.1 billion budget that includes a personal income tax cut that officials say will benefit a sizable chunk of the state’s 1.7 million tax filers.
Under the plan, Connecticut’s 3% income tax rate on the first $10,000 earned by single filers and the $20,000 earned by couples will drop to 2%, and the 5% income tax rate imposed on the next $40,000 earned by singles and $80,000 earned by couples will drop to 4.5%. The cuts are projected to save households $300 to $500 a year.
Lamont boasted that the plan included the “largest tax cut in Connecticut history” and said it made good on his campaign pledge to improve the state’s affordability.
In May, Connecticut House Republicans unveiled their budget plan, which called for more than $1.1 billion in tax relief and repeal of a new highway tax on commercial truckers, among other provisions. But the plan wasn’t taken up by the Democratic-controlled Legislature.
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Christian Wade is a contributor to The Center Square.Â
Photo “Connecticut Capitol” by Shah Ronak S. CC BY-SA 4.0.
