Governor Lamont Reaches Budget Agreement With Legislative Leaders That Includes the Largest Income Tax Cut in Connecticut History

06/05/2023

(HARTFORD, CT) – Governor Ned Lamont today praised an agreement reached with the leadership of the Connecticut General Assembly on the state budget for Fiscal Year (FY) 2024 and FY 2025. This agreement includes the largest income tax cut for working and middle-class individuals and families in Connecticut history, provides significant increases in funding for K-12 and childcare programs, builds thousands of new housing units, and increases support for nonprofit providers. The General Assembly is expected to vote on this agreement prior to midnight on June 7.

"This budget will deliver the largest personal income tax cut in the state's history," Governor Lamont said. "This is not a temporary tax cut – it is designed to be sustainable for years to come. At the beginning of the legislative session, I promised that this budget would build growth and opportunity for all of Connecticut, and this agreement does just that. We are also making historic investments in K-12 education and housing – opening the door to homeownership for thousands of families and increasing funding for nonprofit service providers. I thank the leadership of the General Assembly for their assistance in crafting this transformational budget and I urge members to support it."

"The broad-based middle-class tax relief included in this budget agreement is the direct result of the fiscal guardrails that have transformed our fiscal outlook over the last five years and that were extended earlier this session unanimously," Office of Policy and Management Secretary Jeffrey Beckham said. "Governor Lamont has been clear about what he wanted to see in this budget – sustainable and broad-based tax cuts, adherence to the fiscal guardrails, and sustainability in the outyears. This budget accomplishes those goals, providing predictability and stability for essential services in future years."

The agreement includes:

Tax Relief

Income tax cut savings under budget agreement

Single Filer Click image to enlarge

Joint Filer Click image to enlarge

K-12 Education

Childcare

Higher Education

Housing

Municipal Aid

Criminal Justice

Community gun violence prevention and reduction

Services and added protections for crime victims

Investments in prevention and services for system-involved youth

Support for court operations and personnel

Improved outcomes for the correction population or people with criminal records

Support for emergency services and public safety

Transportation

Environment

Economic and Community Development

Private Providers

Health Equity, Affordability, and Access

Through a combination of General Fund and ARPA, there are many initiatives that address health equity, healthcare affordability, and avoid loss of healthcare coverage as a result of the unwinding of the public health emergency.

Health Outcomes

Social Safety Net

Autism and Intellectual/Developmental Disability Supports

Senior Safety Net Supports