HARTFORD, Conn. (CBS Connecticut and AP) – The Democratic leader of the Connecticut House of Representatives says a contentious proposal by Gov. Dannel P. Malloy to allow municipalities to tax hospitals “is not a dead issue,” but an alternative might be in the works.

Malloy, also a Democrat, has called for ending the local property tax exemption that hospitals have enjoyed for years. In return, Malloy’s $20 billion budget proposal boosts total funding to the hospital industry by $28 million, a figure that includes anticipated new federal Medicaid reimbursement funds.

House Speaker Joe Aresimowicz says he’s “trying to explore other possibilities to do the same thing,” including new investments in cities and encouraging hospitals to take advantage of all available federal reimbursement opportunities.

The Connecticut Hospital Association is urging lawmakers to scrap Malloy’s proposal.

(© Copyright 2017 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.) 

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