CT HB06941

Biennial General Fund budget of $22.1B (FY2024) and $22.8B (FY2025), with the largest allocations to Medicaid ($3.19B/$3.29B), Education Equalization Grants ($2.23B/$2.29B), debt service ($2.57B/$2.59B), state employee/retiree fringe benefits ($3.31B/$3.39B), and teachers' retirement contributions ($1.56B each year); Special Transportation Fund totals $2.15B/$2.29B for the biennium

Education funding accelerated and expanded, with $150M appropriated in FY2025 for education finance reform across equalization grants, charter schools, magnet schools, Open Choice, and agricultural science centers; full equalization for underfunded towns reached by FY2026 (moved up from later years); Care4Kids funding increases from $73.7M to $112.8M; Debt Free Community College expanded to $23.5M/$28.5M with eligibility broadened beyond first-time enrollees to cover the first 72 credit hours

Personal income tax rates reduced effective January 1, 2024, with the lowest bracket dropping from 3.0% to 2.0% and the second bracket from 5.0% to 4.5%; expanded subtractions for IRA distributions phased in (25% in 2023 to 100% by 2026) and Social Security benefits for filers under $75,000/$100,000 AGI thresholds; 10% corporate tax surcharge extended three years through January 1, 2026 for companies with gross income over $100M

Municipal aid restructured through a new Municipal Revenue Sharing Fund receiving 7.9% of sales tax revenue, distributing $568.6M annually including $339.4M for tiered PILOT, $154.6M for motor vehicle tax grants, and $74.7M in supplemental revenue sharing; PILOT reimbursement rates increased to 53% (tier one) and 43% (tier two); specific additional PILOT payments designated for Bridgeport ($5M), New London/Coast Guard Academy ($1M), and others

Health care and social services expanded, including Medicaid eligibility for immigrant children raised from age 12 to age 15 (effective July 2024); home health care complex nursing rates equalized regardless of patient age; funeral/burial allowance increased from $1,350 to $1,800; bundled Medicaid payment for maternity services authorized including doula coverage; step therapy limited to 30 days and prohibited entirely for Stage IV cancer and certain behavioral health conditions through 2027

Hospital nurse staffing requirements strengthened, mandating staffing committees with direct care RN voting majorities, detailed staffing plans with compliance metrics, 80% staffing assignment compliance reporting to DPH, civil penalties of $3,500/$5,000 for violations, mandatory overtime redefined and restricted to 12-hour/48-hour limits with narrow exceptions, and anti-retaliation protections for nurses raising staffing or safety concerns

Housing and development initiatives advanced, including the Department of Housing established as a standalone agency; Connecticut Municipal Redevelopment Authority expanded to all municipalities (removing 70,000 population threshold) with a new housing growth zone program requiring middle housing as-of-right and 10% affordability; annual municipal housing data reporting required with DECD funding eligibility tied to compliance; $75,000 for Hartford sewerage flood relief and a new grant program for flood-damaged properties

Cannabis revenue framework and criminal record reforms enacted, with cannabis tax revenue directed 60% to the Cannabis Social Equity and Innovation Fund and 25% to Prevention and Recovery Services (shifting to 75%/25% by 2029); a new Cannabis Regulatory Fund established; criminal record erasure timelines set at 7 years for misdemeanors and 10 years for Class D/E felonies, with exclusions for family violence, sexual offenses, and repeat DUI

Transportation funded at $2.15B/$2.29B from the Special Transportation Fund, including $232M/$284M for rail operations, $253M/$262M for bus operations, and $60M annually for Town Aid Road Grants; new aviation fuel tax of 15 cents per gallon effective July 2025 with CPI adjustments; highway use tax shifted from monthly to quarterly reporting; $8M annually transferred to CT Airport Authority for Sikorsky Airport operations; diesel fuel tax set at 49.2 cents per gallon

Connecticut Voting Rights Act established, prohibiting municipalities from using election methods that dilute protected class voting power, authorizing lawsuits by aggrieved individuals or the Secretary of State, and empowering courts to order alternative election methods, redistricting, or expanded voting access; a new accredited theater production tax credit set at 30% of expenditures (capped at $2.5M annually); and nuclear power facilities constructed after October 2023 classified as Class I renewable energy sources