CT HB05596

Adjusts Connecticut General Fund net appropriations from $17.50 billion to $17.46 billion for FY 2015 (ending June 30, 2015), with significant changes across dozens of state agencies including increases for the Office of Policy and Management (from $242.8M to $292.1M, largely due to new property tax relief and municipal reimbursement lines) and decreases for the Department of Social Services (from $3.02B to $2.99B) and Department of Correction (from $689.2M to $678.1M).

Creates or increases funding for new line items including $28.4 million for Tax Relief for Elderly Renters, $23 million for Transform CSCU (Connecticut State Colleges and Universities), $3.6 million for Opportunities for Long Term Unemployed, $525,000 for Project Longevity, and $4.8 million for Property Tax Relief under the Office of Policy and Management.

Increases municipal aid by adding $8 million to Reimbursement to Towns for Loss of Taxes on State Property (to $81.6M) and $8 million to Reimbursements to Towns for Private Tax-Exempt Property (to $123.4M), while establishing town-by-town Education Equalization Grant amounts replacing the prior formula-based calculation.

Enacts multiple revenue and tax changes including exempting clothing/footwear under $50 from sales tax effective July 1, 2015, exempting certain nonprescription drugs from sales tax effective April 1, 2015, eliminating admissions tax at Hartford's XL Center, extending the angel investor tax credit program through 2016, and phasing in a state income tax subtraction for teachers' retirement income (10% in 2015, 25% in 2016, 50% in 2017+).

Revises General Fund revenue estimates downward from $17.50 billion to $17.46 billion, reflecting lower projected personal income tax ($9.26B vs. $9.40B) and corporate tax ($704.3M vs. $749.3M) receipts, partially offset by higher real estate conveyance tax ($186.9M vs. $150.8M) and increased miscellaneous tax revenue ($95.2M vs. $20.2M).