In a brazen move that will undermine local public education and increase taxes at the local level, Governor Dannel Malloy announced today that his new proposed budget will dump a major portion of the state’s obligation to fund the teacher’s retirement system onto the back of local towns and taxpayers, all while cutting the most important middle income relief program.
Malloy’s tactics would require Connecticut’s cities and towns to make drastic cuts to local education and increase local property taxes in order to make up the cost shift of $407.6 million in FY 2019 and $420.9 million in FY 2019. His plan would also end the property tax credit designed to help middle income families who are already facing high local tax burdens.
In an article entitled, Malloy would bill towns for teachers’ pensions, cut middle-class tax credit, Keith Phaneuf of the Connecticut Mirror explains;
Gov. Dannel P. Malloy said Friday his proposed budget would shift $407.6 million, nearly one-third of the cost of municipal school teachers’ pensions, onto cities and towns next fiscal year…
Malloy also said the two-year budget he will present Wednesday to the General Assembly would propose eliminating the $200 property tax credit within the income-tax system, costing nearly 875,000 middle-class households as much as $105 million per year based on nonpartisan analysts’ estimates.
More on this breaking story can be found at – http://ctmirror.org/2017/02/03/malloy-would-bill-towns-for-teachers-pensions-hints-at-cut-to-middle-class-income-tax-credit/