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Voices Speaking

November 30, 2017

E-Notes: A Time to Give

In today’s email:

A Time to Give:

For more than two decades, Connecticut Voices for Children has provided advocacy for children across our state, calling for systemic changes necessary to increase equity in opportunity. Our research-based analysis and advocacy have made a difference in the lives of tens of thousands of children, leading to reforms such as the state EITC, which has lifted families out of poverty and removed barriers to children’s healthy growth and development.   

Our work depends on an ongoing partnership with you. Your financial support enables us to provide a credible and timely voice on critical matters, including our ongoing budget analysis and recommendations. Our voice is more important now than ever, given the state’s fiscal crisis and the structural problems that demand innovative, value-driven solutions. We believe that equity in opportunity for children and families should guide all budget and policy decisions. With your contribution, we can work together to make the dream of a better life accessible to all children and families across our state.

Policy Updates

Budget Deal: a Dangerous Spending Cap

Our recent Children’s Budget brief focuses on three policy changes in the budget which have received little attention, but have huge potential consequences for Connecticut´s children and families: the spending cap, the volatility cap, and the bond lock. As written, these three items will put limits on state spending, taxing, and fiscal policymaking, creating a fiscal straitjacket that could potentially put key state priorities in jeopardy.

  • The spending cap puts a hard limit on the growth rate of appropriated funds, based on prior-year spending, inflation, and personal income growth. The budget agreement includes new definitions for the spending cap which make it both more comprehensive and more restrictive, creating a likely crowd-out of discretionary funding for key programs for children and families as fixed costs increase.
  • The volatility cap is a new statutory rule which requires that any additional revenue in excess of fiscal year 2017 income tax collections be deposited into the rainy day fund. While this will have the positive effect of reducing the volatility of income tax revenue, it could limit the ability of future legislatures to raise revenue for current services through changes to the income taxe.
  • The bond lock takes effect in May 2018. This rule will make the state include a clause in all bonds promising not to change the spending cap, volatility cap, or bonding cap except in extraordinary circumstances for the next 10 years. As bonds are contracts, this would hamper any attempts by the General Assembly to fix the spending or volatility caps. It would also tie the hands of future legislatures, preventing them making investments in  much-needed infrastructure or responding to unexpected needs.

These three provisions create structural changes to our tax and budget system in ways that could limit our economic growth and undermine overall well being. Expect to hear much more about this issue from us in the coming weeks.

Budget News: Yet Another Deficit

While the bipartisan budget agreement put an end to months of uncertainty, it failed to address many of the underlying problems. In our in-depth analysis of the budget, we explained our concerns, from damaging cuts to key programs to short-term accounting tricks to close the deficit, without real reform.

Unsurprisingly, the short-term fixes have not been enough to keep the budget in balance, and the state has again slipped into a $203 million deficit. The General Assembly might have to reconvene again to pass a deficit mitigation plan once this figure is verified for another round of program cuts. Meanwhile, the CT News Junkie has reported large built in budget deficits for 2020 and 2021.

Federal Update: a Very Busy December

Congress is back in session in Washington, and they have a very busy agenda. Here is a list of the main issues they plan to address before the Christmas break:

  • Avoiding a government shutdown: the federal government has only enough funds to continue operating until December 8, so Congress must pass a continuing resolution to prevent a shutdown. The bill requires 60 votes in the Senate, so some bipartisan cooperation is necessary. Unfortunately, negotiations fell apart before they could even start.
  • CHIP reauthorization: funding expired two months ago, and Congress has not yet been able to reauthorize the funding. CHIP might be included in efforts to pass a continuing resolution. If no reauthorization passes soon, Connecticut’s CHIP program will likely run out of funding in January and be forced to leave over 17,000 children without insurance. Read more about CHIP here.
  • Tax reform proposal: House and Senate leadership are trying to pass a big tax cut package in the coming weeks. We have written about this bill extensively (here, here, and here). It is an extraordinarily upside-down proposal that pushes large permanent tax cuts for corporations and the very wealthy, eliminates many tax credits and deductions that help working families, and leaves 13 million people without health insurance. Senate leaders intend to vote on the proposal before the end of the week; the House passed their version of the bill two weeks ago.
  • The tax reform proposal also includes a repeal of the individual mandate - a key part of the ACA. This is projected to cause premium increases in addition to leaving many Americans unable to afford health insurance.

ICYMI: Recent Publications from CT Voices

Session in Review
It has been a long, contentious legislative session, dominated by endless budget fights. It was not, however, a meaningless one. We had many policy victories this year in budget transparency, early care and education, juvenile justice, and health care.
Click here to read our review of the 2017 legislative session.

The State of Early Childhood
For more than a decade, Connecticut has made expanding early care and education programs a policy and budget priority. In our latest report, we provide an in-depth look at early childhood programs in our state and the road ahead.
Click here to read our "State of Early Childhood" report.

The Children's Budget
More than a hundred days after the new fiscal year began, legislators finally found sufficient common ground to pass a budget. The Children’s Budget, the share of state spending in children and families, reached a record low in the latest state budget, declining to 27.8 percent of the budget, down from 29.5 percent in fiscal year 2017.
Read More about how the budget agreement will impact children and families in our latest budget analysis.

What We Are Reading

Issue Areas:
Budget and Tax, Child Welfare, Early Care, Education, Family Economic Security, Health, Juvenile Justice
November 13, 2017

House Tax Bill’s Child Tax Credit Increase Excludes 68,000 Children in Low-Income Working Families

Sharon Langer, MEd, J.D.

House leaders highlight an increase in the maximum value of the federal Child Tax Credit (CTC) as their tax bill’s signature benefit for working families, but the provision completely excludes 68,000 children in Connecticut whose parents work in low-paying jobs, according to a new report from the Washington, DC-based Center on Budget and Policy Priorities. Another 94,000 Connecticut children in low-income working families would receive less than the full $600 increase in the credit that would be available to higher income families. Altogether, about 162,0000 Connecticut children in working families would either be excluded entirely or only partially benefit from the increase in the CTC.

Nationally, roughly 23 million children would be partially or entirely excluded from the House plan, even as it newly extends the CTC to families with incomes between $150,000 and $294,000. For example, a single mom of two working full time at the minimum wage would get no benefit from the CTC expansion under the House Republican plan while a married couple earning $230,000 would receive a new $3,200 benefit. Senate leaders have increased the CTC further slightly on their proposal. The basic structure, however, remains the same, so it still provides far larger benefits to higher income families than to families that face difficulties affording the basics.

Helping families that are struggling to make ends meet gives kids a better shot at success. Research suggests that boosting parents’ incomes helps children do better in school, and makes them healthier and more likely to go to college. That’s good for our kids and our economy. Leaving these families out makes no sense. 

House Republican Tax Plan Would Largely Benefit the Wealthy at the Expense of Everyone Else


Even as the House tax bill excludes tens of thousands of Connecticut children from its CTC expansion, it spends billions of dollars on large tax cuts for the wealthiest families and profitable corporations. The wealthiest 1 percent of Connecticut residents will receive an average tax cut of $66,020 by 2027, when the plan’s provisions are fully in effect. 

In total, the House bill’s tax cuts would increase the deficit by at least $1.5 trillion over the next decade. Congressional leaders might then use rising deficits to justify seeking large cuts in programs like Medicaid, food assistance for struggling families, education, job training, and college aid – programs that help everyday Americans make ends meet, access health care, and succeed in today’s economy.

The current federal tax proposal excludes millions of low-income working families. But when attention turns to paying for these tax cuts, these are the families that will bear the brunt of cuts in health care, education, job training, and other key programs – a one-two punch that would leave these families worse off overall. Connecticut’s congressional delegation should oppose a tax bill that partially or entirely excludes working families from a CTC increase, provides lavish benefits on the wealthy, and balloons the deficit. Instead, they should pursue a bipartisan tax bill that focuses its benefits on workers and families, doesn’t cut taxes for the wealthy, and doesn’t increase the deficit.

Issue Area:
Budget and Tax
November 9, 2017

Office of Early Childhood Announces Care 4 Kids Program Will Reopen To Provide Crucial Child Care Subsidies to Thousands of Families

Sharon Langer, MEd, J.D. and

The Care 4 Kids program, a cornerstone of Connecticut’s early care and education system, will reopen enrollment in the coming weeks. New funding included in the recently approved state budget will allow the Office of Early Childhood to reopen the child care subsidy program to some of the 5,769 families on the waiting list for the program. Program administrators mailed applications to the first 1,600 families today as a first step.

The Care 4 Kids program closure more than a year ago was the result of federal regulatory changes that increased program costs without providing additional funding, leading to a budget shortfall. The closure left thousands of families without high-quality care and threatened child care providers across the state who could no longer fill their classrooms. Thanks to the efforts of Connecticut advocates and policymakers, many children and families will regain access to this critical program.

The Care 4 Kids child care subsidy plays a key role in providing quality child care to low-income working families in Connecticut, enrolling an average of about 21,000 children per month in 2016. Connecticut has a high need for affordable child-care, especially for the sixteen percent of children under age five in our state whose families live below the poverty line. Care 4 Kids helps children and families access early care and education programs, which are among the most effective programs for improving the lifelong outcomes for children. Child care programs allow parents to go to work to support their families. Children who have attended high-quality early care and education tend to grow up healthier, do better in school, and earn higher incomes as adults. These improved outcomes have a direct positive impact on the economy in the form of increased wages and productivity, and lower spending on social services.

Securing additional funding for Care 4 Kids for the next two years was part of a bipartisan effort to ensure that children and families remain a priority for state government, building a strong foundation for families and for future economic growth. This funding, however, represents a partial first step. The additional funds cover only a small portion of the existing shortfall. Care 4 Kids will serve more children, but it won’t be able to return to last year’s levels, meaning that not every eligible family will receive the subsidies they need. It is expected that the program will continue to operate with a waiting list. Unfortunately, children’s development cannot wait, and neither do employers who need their employees to come in to work.

The reopening of the Care 4 Kids program, even if partial, is good news for children, families and business across Connecticut. By providing child care subsidies that open the doors to high-quality early care, we not only help parents work and enable young children to thrive but we also lay the foundation for later school success and college and career readiness. Bipartisan support for the program, even in these challenging budget times, sends a strong signal that lawmakers on both sides of the aisle are willing to work to create opportunity and advance inclusive economic growth. We look forward to exploring new ways this coming legislative session to further expand the program to ensure that all children in Connecticut have a meaningful chance to reach their full potential.

Issue Area:
Early Care