House Republican Press Release

April 24, 2007

Press Office: 860-240-8700

Rep. O’Neill: Republican ‘No Tax Increase’ Alternative Budget The Best Path For Connecticut

Area Towns Would Receive More Education Funds

Than Under Majority Party Plan

HARTFORD – State Rep. Arthur J. O’Neill, R-Southbury, today joined with House Republicans in unveiling 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.

Under the “No-Tax-Increase Republican Budget Alternative: Southbury would receive an additional $1.5 million in state Education Cost Sharing (ECS) funds (vs. $986,018 in the Democrat proposal); Bridgewater would receive an additional $49,335 in ECS funds (vs. an additional $3,561 in the Democrat proposal), Roxbury would receive an additional $73,221 in ECS funds (vs. an additional $3,956 under the Democrat proposal) and Washington would receive an additional $101,000 (vs. an additional $6,054 under the Democrat proposal).

Unlike previous budget proposals offered during the 2007 Legislative Session, these increases would not be accompanied by hikes in the state income tax. The Republican budget proposal would also begin to reduce other taxes, including the state income tax on senior citizen pension benefits.

“I believe that this proposal, which I helped to craft, represents realistic and constructive measures that will benefit residents of my towns and the whole State of Connecticut by reducing, not raising taxes,” said Rep. O’Neill.

In direct contrast to the Democrat plan that would raise spending by $1.7 billion, the Republican plan would spare Connecticut another tax hike. But Republicans noted that their plan increases spending in many areas:

· $358 million in public school funding and $1.1 billion for fully funding teachers’ pensions;

· Medicaid reimbursements for hospitals increases by $87 million to expand healthcare access for low income families;

· another $50 million for other providers and $13 million for nursing homes;

· municipal aid for town and city PILOTS, Town Aid Road and the Pequot Fund goes up by $23 million;

· $20 million for a unique first-time home buyer’s initiative for college graduates that will help keep young people in Connecticut;

· Dedicates $2 million to help state dairy farmers meet the rising costs of doing business.

Connecticut residents already pay the highest taxes in America, and raising them higher only drives them away to lower cost states. House Republican tax cuts include:

· Phasing out the state income tax on pensions to save retirees $33 million;

· Eliminating the annual tax on small businesses resulting in a $25 million savings;

· Doing away with the electricity sales tax for businesses resulting in a $30 million savings;

· Phasing out the estate tax and eliminating the cliff;

· Retaining the clothing tax exemption Democrats want to do away with;

· “Deleting” the Internet sales tax scheme as proposed by the Democrats.