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Voices Speaking

May 29, 2019

Voices from the Capitol: State budget under negotiation

State Budget

Last week, 63 state legislators – including a majority of House Democrats – signed a letter to Governor Lamont encouraging him to approve a budget that asks those who can best afford it to pay more in taxes. The letter called for a two percent surcharge on capital gains for couples earning over $1 million in annual income and individuals earning more than $500,000. As we discussed in our blog, capital gains fact sheet, and revenue proposal report, a capital gains tax could help to close the budget deficit and to fix Connecticut’s upside-down tax system, in which the wealthy pay a smaller share of their income in state and local taxes than middle- and low-income residents. 

Later news reports indicated that a tentative budget framework that is being negotiated between the Governor and legislative leaders does not include this capital gains tax, though it does include a “mansion tax” on expensive homes, a sales tax increase on some luxury items, and higher taxes on pass-through entity businesses. Unfortunately, these measures would only generate about one-quarter of the revenues that a capital gains tax would produce.

A negotiated budget proposal may be released this week, and a vote is expected by Wednesday, June 5, when the legislative session ends. Please take a moment today to ask both the Governor and your state legislators to fix the state budget deficit and help pay for vital services for children and families by asking the wealthy to pay more!

 

Legislative Update

As the end of the legislative session approaches on Wednesday, June 5, be sure to contact your legislators and the Governor on issues of concern to you. These are some highlights of recent legislative activity affecting children and families:

Minimum wage. A bill increasing the minimum wage to $15 by 2023 was signed by Governor Lamont this week! Thank you to everyone who supported this effort to give Connecticut families a raise.

Paid family leave. A bill implementing paid family leave (Senate Bill 1) was approved last week by the Connecticut Senate. However, the Governor has indicated that he would veto this bill over concerns about how the program would be administered. The bill awaits a House vote or a negotiated agreement with the Governor.

Community health worker and doula certification. Last week, the Senate approved Senate Bill 859, An Act Concerning Community Health Workers, which would establish a community health worker certification process as a step towards health equity in Connecticut. Community health workers can help to address barriers to health care and unmet needs. The bill awaits a House vote. In addition, a bill that would establish a workgroup concerning the core competencies for doulas to be licensed or certified to practice (Senate Bill 1078) still awaits a vote in the House, following Senate approval earlier this month.

Child welfare oversight. Last week, the Senate approved Senate Bill 452, which would establish a State Oversight Council on Children and Families. The Council provides a structure for various stakeholders to support the needs of children and families who are involved with the child welfare system or at risk of entering the foster care system. The Council could help the state to maintain and build upon important gains made under the Juan F. Consent Decree, even after we have exited from federal oversight. The bill awaits a vote in the House.

Inclusion of Black and Latino studies in the public school curriculum. The House approved legislation (House Bill 7082) that would add Black and Latino studies to the required programs of study for public schools and require boards of education to include an elective course about these topics in their high school curriculum beginning with the 2022-23 school year. The bill has been sent to the Senate for a vote.

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Issue Areas:
Budget and Tax, Child Welfare, Family Economic Security, Health
May 24, 2019

Capital Gains Tax Could Help to Reduce Inequality and Boost Opportunity

Connecticut faces a deficit of about $3 billion over the next two years. Without adequate revenues, budget cuts could threaten the education, health, and child care funding vital to expanding opportunities for the state’s children and families. In addition, Connecticut’s upside-down tax system contributes to growing inequality in the state. The wealthiest 20 percent of taxpayers pay a smaller share of their income on state and local taxes than the lowest 20 percent.

As part of its state revenue proposal, the General Assembly’s Finance Committee has proposed a two percent surcharge on capital gains for taxpayers with income over $500,000 for single filers and $1 million for married filers.  The Center on Budget and Policy Priorities highlighted proposals in Connecticut and other states that are considering raising capital gains taxes. Their analysis finds that:

  • Because wealth is highly concentrated, so is capital gains income. Nationally, 69 percent of capital gains go to the wealthiest one percent of taxpayers.
  • While opponents argue that strengthening capital gains taxes discourages investment and stifles economic growth, research evidence indicates that there is no connection between capital gains tax rates and economic growth.

Capital Gains Go to Wealthy Families

Connecticut Voices for Children’s recent revenue proposals recommended a broader capital gains and qualified dividends tax on the top two personal income tax brackets. As we discussed in our fact sheet, wealthy Connecticut residents would still enjoy a huge net tax reduction, even with a new state capital gains tax. More than half (56 percent) of the federal Trump tax cuts will go to the wealthiest five percent of Connecticut taxpayers, who will pay $2 billion less in personal income, corporate, and estate taxes in 2019. The top one percent of taxpayers in the state will enjoy an average federal tax cut of nearly $60,000.

Please let the Governor and your state legislators know that you support state revenue proposals that help to fix our state budget deficit, reduce inequality, and expand opportunities for children and families by asking the wealthy to pay more!

Issue Area:
Budget and Tax
May 21, 2019

Voices from the Capitol: State budget, minimum wage, early childhood day at the Capitol

Legislative Update

There are only two weeks left before the state legislative session ends on June 5, and policymakers are making critical decisions now about funding priorities for children and families and on the revenues to support them. Here are a few updates on recent developments.

State budget: action needed. Smart state fiscal policies can play a critical role in building a strong, equitable state economy. It is time we fix our tax laws to give working people and children a fair shot to get ahead by pursuing the twin goals of assuring adequate revenues to support the programs and services vital to the well-being of our children and families, and enhancing the fairness of our tax system.

Please take a moment today to ask both the Governor and your state legislators to fix the state budget deficit and help pay for vital services for children and families by asking the wealthy to pay more!

Finance Committee proposal. The General Assembly’s Finance Committee has published an “implementer bill” that lays out the details of its revenue proposals. It includes a highly progressive, two percent surcharge on capital gains realized by taxpayers in the highest income tax bracket and non-residents with gains derived from Connecticut sources.

This bill also recommends that the Commissioner of the Department of Revenue Services produce a report by January 2020 on the potential impact of implementing a new payroll tax in Connecticut. This is a complex proposal that would largely replace our state personal income tax. There are many unanswered questions about its implementation; the impact on low-income families; and other important, unforeseen consequences.

For more information on revenue options that would provide more adequate funding for child and family services while improving fairness in our tax system, see our recent report and a presentation by Jamie Mills, Director of Fiscal Policy and Economic Inclusion at Voices.

Minimum wage. Connecticut families will soon get a raise! Legislation to raise the minimum wage to $15 over the next four years was approved by the House and Senate, and Governor Lamont has indicated that he will sign the bill.

Doula certification. Legislation that would establish a workgroup concerning the core competencies for doulas to be licensed or certified to practice was approved unanimously by the Senate and awaits a vote in the House. The working group would be charged with evaluating public health and safety risks and benefits associated with doulas, and the minimum requirements needed for licensure or certification as a doula. Doulas provide physical, emotional, and informational support before, during and after the birth; they do not provide medical care. Evidence suggests that doula support is likely to reduce the dramatic racial disparities in maternal and infant health outcomes.

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Early Childhood Day at the Capitol

Join us at the 2019 Day at the Capitol on Thursday morning to learn about the early childhood proposals before the state legislature. The event, sponsored by the Connecticut After School Network and the Connecticut Early Childhood Alliance, will take place on May 23 from 9 to 11 a.m. in Room 310 at the State Capitol. After the event, you are encouraged to meet with your legislators for some hands-on advocacy.  Participants are encouraged to wear yellow.

Please RSVP here.

Learn more

Issue Areas:
Budget and Tax, Early Care, Family Economic Security, Health
May 10, 2019

Voices from the Capitol: Countdown to the End of the Session

 

Legislative Update: Countdown to the End of the Session

There are fewer than four weeks left in the state legislative session, and this is a key time to contact your legislators about your priorities for children and families.

Raise your voice for fair and adequate state revenues

Connecticut has the opportunity this year to make significant progress toward improved access to high-quality early care and health care, as well as protecting the rights of youth in foster care and restoring funds for juvenile justice services. But without adequate revenues to close a recently estimated $3 billion budget gap over the next two years, more painful cuts that could fall most heavily on children and low-income families are all too likely.

Connecticut also needs to fix our upside down tax system, in which the wealthy pay a smaller share of their income in state and local taxes than low- and middle-income people to fund the programs and services vital to the well-being of our children and families. As we discussed in our recent summary, the revenue proposal by the General Assembly’s Finance Committee takes some positive steps in this direction by raising revenues through a surcharge on capital gains for high-income residents and by closing some corporate tax loopholes. However, the Committee’s proposal falls $340 million short of the revenues proposed by Governor Lamont for the next two years.

Another revenue proposal under discussion by legislators and advocates is a higher personal income tax rate for residents in the highest tax brackets. The state legislative session ends in less than one month on June 5, so the final shape of the state revenue and spending plans will be negotiated soon.

Please take a moment today to send a message to your legislators and the Governor, asking them to raise taxes on the wealthiest taxpayers, who currently pay less than their fair share!

Legislative budget plan avoids major cuts, but investments limited by budget rules

While the budget bill passed by the Appropriations Committee protects many programs that serve children and families from budget cuts, rigid and counterproductive budget rules are starving schools, infrastructure, and health systems of the spending needed to support critical investments.

As we explored in our latest report, the Appropriations Committee’s spending plan includes funding for some of our key priorities, including the preservation of coverage for parents of children in the HUSKY health insurance program, start-up costs for a public option to expand health insurance coverage, and restored funding for juvenile justice services. However, implementing these measures depends on raising adequate revenues. And our capacity to make the bolder investments we need in children and families continues to be limited by budget rules like the Bond Lock and the volatility, revenue, and spending caps.

Minimum wage hike approved by the House

Legislation to increase the minimum wage in Connecticut to $15 over the next four years was approved by the Connecticut House on Thursday! The bill includes a provision for a lower “training wage” for 16 and 17 year-olds for the first 90 days of their employment. The bill now moves to the Senate, where a vote may be scheduled soon.

Paid family and medical leave bill awaits floor vote

Recently, advocates have been pressing legislators to ensure that the paid family and medical leave bill ensures that all workers have access to paid leave, regardless of the size of their employer. They are also advocating for a definition of family that includes chosen family, which can be important to ensure that children in non-traditional families can still receive the care they need. The bill may get a floor vote in the Senate soon.

National partners join Voices in support of capital gains surcharge

Staff experts from our national partners – Elizabeth McNichol of the Center on Budget and Policy Priorities and Aidan Davis of the Institute on Taxation and Economic Policy – joined Jamie Mills of Connecticut Voices for Children in submitting powerful testimony before the Finance Committee in support of a modest surcharge on capital gains earned by our wealthiest residents.

 

Teach-In on the State Budget

Join us at a teach-in on state budget solutions on Tuesday, where Jamie Mills, Director of Fiscal Policy and Economic Inclusion at Connecticut Voices for Children, will discuss how Connecticut’s regressive tax system contributes to growing inequality and how the state’s rigid budget rules exacerbate budget problems. She’ll also explore revenue solutions that can enable us to fund vital priorities for children and families.

The teach-in, sponsored by the DUE Justice Coalition, will take place on Tuesday, May 14 at 10 a.m. in Room 1B at the Legislative Office Building in Hartford.

Please spread the word and share the event flyer. We’ll see you there!

 

Issue Areas:
Budget and Tax, Child Welfare, Family Economic Security, Health, Juvenile Justice

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