House Republican Press Release

June 22, 2007

Press Office: 860-240-8700

REP. CAFERO LEADS REPUBLICAN SUPPORT FOR NO INCOME, PROPERTY TAX INCREASE BUDGET

TAX AND SPENDING PLAN MIRRORS REPUBLICAN PROPOSAL

HARTFORD – With overwhelming Republican support for the state budget, House Minority Leader Lawrence F. Cafero Jr., of Norwalk today led the way for bipartisan approval of the two-year, $36 billion tax and spending plan that requires no property or income taxes increases.

Of the three initial budget plans – Gov. Rell’s, the Democrats and the House Republicans No Tax Increase proposal - the one approved by the House most closely mirrors the House Republican version put forth on April 24. Cafero said the real winners were taxpayers who will not be asked to pay more in property or income taxes, but will see unprecedented funds committed to education, transportation and health care.

“Republicans were steadfastly opposed to raising taxes at a time when we have a $1 billion surplus and rising revenue projections,’’ Cafero said. “The public understood this and responded. That’s why we were able to avoid a tax increase and still make historic investments in our schools and transportation, and make it easier and affordable for thousands more to see a doctor or receive quality hospital or nursing home care.’’

Cafero said that the $1.4 billion tax increase the Democrats pushed to pay for their huge spending spree was simply uncalled for at a time when the budget surplus was edging toward $1 billion. Cafero credited Gov. M. Jodi Rell with forcing a last-minute compromise with Democrats who tried vainly to hold on to their tax increases.

“When we proposed our No Tax Increase plan on April 24, it changed the momentum of the legislature. We were able to convince the public and other lawmakers that we could, in fact, meet the state’s needs without increasing taxes. And that’s what happened, despite the rhetoric of the  huge Democratic majority,’’ Cafero said.

The energy plan approved during the regular session actually includes numerous tax cuts in the form of credits for efficient energy systems and conservation initiatives totaling millions of dollars. Those savings largely offset the only tax increases in the entire budget – the 50-cent, per- pack hike in the cigarette tax.

Hospital reimbursement will increase by 10 percent, with doctors and clinics also in store for increases ranging between 40 and 50 percent. Nursing homes and private providers will also receive 3 percent increases in funding.