House Republican Press Release

April 24, 2007

Press Office: 860-240-8700

Rep. Michael Caron Supports No-Tax Increase Budget Alternative that Increases Aid to Local Towns

State Rep. Michael Caron, R-44th, Killingly, Plainfield, Sterling, supports a “No-Tax-Increase Republican Budget Alternative” that maintains state services, supports local towns, with no increase in taxes. The Connecticut House Republican budget proposal also would begin to reduce taxes, including the state income tax on senior citizen pension benefits.

Connecticut House Republicans have unveiled an alternative budget plan that requires no new taxes, is balanced and would save taxpayers at least $1 billion over the next two years without slashing vital state services.

Rep. Caron said, “This is responsible budgeting. Our towns do better, we meet citizens’ needs in a reasonable and responsible way without a tax increase.”

He said, “With inflation below three percent, the Democrats’ budget proposes 10.4 percent in spending increases. That level of spending is irresponsible by raising taxes when we have $600 million surpluses. More importantly, it is unsustainable fiscal policy. Instead, we propose a smaller spending increase that addresses priorities including energy, healthcare, state aid to municipalities and jobs and economic growth.”

Rep. Caron added, “The supermajority Democrats have promised property tax reform but provided none. They promised to aid to nursing homes, but provided none. They talk about universal health care but provided none. They promised an energy policy overhaul but provided none.”

Connecticut House Republican legislators have proposed several unique initiatives this year to keep young adults and senior citizens in Connecticut by offering first time homeowner incentives and by exempting pensions from the state income tax. 

While a Democratic plan would raise spending by $1.7 billion next year or 10.4 %, the Republican proposal would spare taxpayers any more pain. Rep. Caron noted that the Republican plan would boost spending in many areas:

· Increases school aid for every town

· Medicaid reimbursements for hospitals is increased to expand health care access for thousands

· Nonprofit community service providers and nursing homes receive more funding

· Municipal aid to towns goes up

· First time homebuyers would receive incentives to live and raise a family in Connecticut

· Dairy farmers would be eligible for low interest loans from the state

Under the Republican plan for school aid, Killingly would receive an additional $544,997, Plainfield $505,621, and Sterling $141,623. Further, the Republican plan would boost other state payments to towns including road aid and payment in lieu of taxation for tax exempt property.

For more information on the plan, click on: http://www.HouseGOP.ct.gov