Gov. Ned Lamont (D-CT) signed his state’s next two-year budget into law on Monday. The budget contains major cuts to personal income taxes.
The fiscal years 2024 and 2025 biennial state budget agreement was reached between Lamont and the state legislature last week, and it includes the largest income tax cuts in Connecticut history.
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House Bill 6941 includes an expansion of child care, developments of debt-free community college, free workforce training, rent relief, and several other tax relief measures for Connecticut residents.
“Our budget delivers on key investments in child care and K–12 education, special education, gun violence prevention hospitals, and federally qualified health centers, housing transportation, and workforce transportation,” Lt. Gov. Susan Bysiewicz said during the signing ceremony at the state Capitol.
Connecticut Democrats announced that the tax cuts in the budget will save taxpayers an estimated $460 million a year while paying down the state’s debts.
Tax relief measures include a tax cut for the middle class and an increase in earned income tax credit from the current rate of 30.5% of the federal credit to 40% for low-income workers.
Democratic lawmakers touted several notable education investments in the budget, highlighting the post-pandemic need to issue new money to multiple learning programs.
“We have more funding for secondary education, more funding for higher education, and more funding for our municipal governments,” said state Senate Majority Leader Bob Duff. “That clearly and squarely helps the middle class here in the state of Connecticut.”
Lamont applauded the Democratic and Republican lawmakers for working together to create the $51 billion two-year state budget.
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“What this says about the state, look around the rest of the country,” Lamont said. “I like the way Connecticut led today.”
State Comptroller Sean Scanlon predicted a $1.6 billion budget surplus at the end of the fiscal year in a monthly financial and economic update. The budget takes effect on July 1.
