January 31, 2014

GOV. MALLOY ANNOUNCES TWO-YEAR, NEARLY $450 MILLION PLAN FOR MODEST TAX RELIEF

(HARTFORD, CT) - Governor Dannel P. Malloy today announced a two-year plan to provide modest, targeted tax relief for Connecticut families totaling nearly $450 million.

"As our state economy continues to improve, we need to make sure that everyone shares in our emerging recovery," Governor Malloy said. "The package I am proposing is not a panacea, but rather a modest, responsible way to begin reducing the tax burden on Connecticut residents. It's my belief that as our economy continues to recover, it can and should be the first step toward larger relief over the long-term."

The Governor's plan builds on the sales and gas tax refund he announced yesterday. Plans include:

Paired with the announcement yesterday that the state's current year surplus will go largely to bolstering the Rainy Day Fund and paying down long-term debt, Governor Malloy's budget lays the foundation for balanced budget in the future.

Under a scenario in which revenues grow at the same rate that they did in the last decade, and in which state spending maintains the low growth rate of the last four years, the state will have a surplus greater than $1 billion by 2018.

The scenarios in the chart below show that if spending remains controlled in the coming years as it has been under the four most recent state budgets, and revenue grows at even the slow pace of recent years, Connecticut will be able to continue to balance its budget and even cut taxes further:

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For Immediate Release: January 31, 2014

Contact: Andrew Doba

Andrew.Doba@ct.gov

860-524-7308 (office)
860-770-8090 (cell)

Facebook: Office of Governor Dannel P. Malloy