Malloy’s Proposed Use Of Surplus Includes Tax Refunds, Payment To Pension Fund, Enhancing Rainy Day Fund
HARTFORD (CBS Connecticut) — Ever since the state announced a projected surplus of some half-a-billion dollars for this fiscal year, various interest groups have been pitching their proposed uses for the money.
Today in Derby, Governor Dannel Malloy announced his proposal for use of the money. It includes a sales and gas tax refund for state taxpayers — $55 to those earning less than $200,000, or $110 dollars for joint filers earning less than $400,00 -thousand. He says the move will pump $155 million dollars into the state’s economy.
The governor also says he wants to put just under half the $505 million dollar surplus into what’s known as the “Rainy Day Fund,” nearly doubling the size of the budget reserve.
He’s proposing another hundred million be put toward the state pension fund.
And the governor says he will propose a new state law requiring a similar breakdown in any state surplus in the future — putting the money toward tax relief, the rainy fund and long-term debt.
Comptroller Kevin Lembo issued a statement saying he supports what he called the “protective measures” in the governor’s proposal — replenishing the Rainy Day Fund and retiring part of the long-term debt. He said he also supports increasing the maximum size of the Rainy Day Fund, as called for by the governor.