“Gov. Malloy deserves credit for coming out with budget adjustments in advance of the session. This will help the legislature formulate a response and incorporate some of his ideas and policies in what promises to be another challenging year. In particular, mitigating the loss of property tax deductions for some due to federal tax changes by allowing towns to set up charitable foundations appears to be an innovative approach,’’ Klarides said.
However, returning to some of the options to balance the budget that Republicans have rejected in the past – elimination of the property tax exemption altogether, taxing non-prescription drugs, cutting all municipal aid to selected towns – is troublesome. Klarides recently criticized the Governor’s proposed toll program, as well as the tire tax and gas tax hikes, all of which were noted in the budget adjustments released today.
“We have to deal with the current deficit and address another multi-billion hole in the next two-year budget cycle. We will put forth our ideas and see where there is common ground. We have a lot of work to do,’’ Klarides said.