House Republican Press Release

February 22, 2007

Press Office: 860-240-8700

State Rep. Richard Ferrari opposes proposed income tax increase

Gov. M. Jodi Rell’s budget proposal calls for an additional $3.4 billion in education spending over the next two years. Providing a quality education to tomorrow’s community leaders is a common goal among many in this state.

As noble an intention as that may be, however, we must weigh increased education funding against an across-the-board income tax increase. At a time when Connecticut’s economy is sluggish at best, increasing the state income tax from 5 to 5.5 percent over the next two years would likely only further stymie economic growth in the state.

While the amount of state aid to towns would increase under the proposal, most towns in the 62^nd District will lose out under the current proposal.

The non-partisan Office of Fiscal Analysis has issued a report detailing how much towns would pay in additional income tax, versus how much in additional education funding would come from the state.

During 2008-2009, East Granby would pay an additional $1,844,391 in income taxes, but would receive only $1,338,491 in additional state education funds; Granby would pay an additional $4,872,039 and would receive an additional $2,461,412; and New Hartford would pay an additional $3,509,227 and would get an additional $966,342 back from the state.

Barkhamsted would stand to gain $808,748 under the current budget proposal.

Part of the rationale behind the increase in state funding through the Education Cost Sharing (ECS) formula is that the state was not funding municipalities at the 50 percent level, and that the increased funding would improve results in the schools. It should be noted that Hartford currently receives in excess of 50 percent funding from the state, yet its schools lag behind most in Connecticut in achievement. Throwing more money at a failing system simply will not work.

The ECS formula already is unfair to many towns in that it does not give back as much in education funding as is paid in taxes by a number of towns. Unfortunately, the Governor’s budget only exacerbates that inequity.

At a time when states like New Jersey are cutting state income tax rates, and other states are considering doing away with state income taxes altogether to spur economic growth, it would be unwise for Connecticut to increase the tax burden on its taxpayers. Connecticut residents already carry the highest individual tax burden in the nation.

Some have said an increase in state education funding would provide much-needed property tax relief to Connecticut’s municipalities, but there is no mechanism in the current budget proposal to ensure that would happen.       

Given the state’s other pressing needs – energy reforms, housing affordability, the ever-burgeoning tax burden – now is not the time for such an ambitious and expensive initiative.

Rep. Richard Ferrari (R-62) represents Barkhamsted, East Granby, Granby and New Hartford in the General Assembly.