HARTFORD, Conn. (CBS Connecticut) – Governor Dannel Malloy, on Monday, unveiled a revised state budget plan to address eroding revenues from the state income tax, which have grown the state’s projected budget deficit to $2.3 billion for the fiscal year starting July 1.
The package proposes additional cuts to state aid, but would cap Malloy’s proposed shift of a share of teacher pension costs to cities and towns at $400 million per year.
In all, the revised fiscal plan would cut an additional $241 million in spending from the General Fund, and $363 million from other funds.
Malloy says the revised plan incorporates some proposals from lawmakers, including adding English Learners as a separate weighting factor for school funding, and uses sales tax revenues on new vehicles to prop up the Special Transportation Fund through 2022.
While the governor’s package does not increase the income or sales taxes, it does eliminate the sales-tax exemption for non-prescription drugs and hikes the real estate conveyance tax from 1.5 percent to 2 percent on homes valued above $800,0000.