Governor Dannel P. Malloy today signed the fiscal year 2016-17 budget, including major investments in transportation infrastructure and property tax relief for middle class families.
The budget holds spending growth to 3.9% in 2016 and 3.0% in the following fiscal year. The budget will cap the car tax at 32 mills in 2017 and 29.5 mills in 2018.
The budget also funds the bipartisan Second Chance Society initiative the governor launched this year. With crime at a more than 40-year low, by making the criminal justice system fairer, Connecticut is working to drive it down even further by ending a cycle of crime and poverty.
Working with the General Assembly, Malloy heard the concerns from Connecticut’s business community and rolled back increases to the data processing and World Wide Web services taxes, while delaying the implementation of the unitary tax until 2016. Those improvements to the budget were paid for with spending reductions.
“This was a difficult budget with no easy or popular decisions,” Malloy said. “But listening to many communities across the state, from business to non-profit to our municipalities, I believe we have a budget that helps deliver prosperity for the future.
“Working together, we made the difficult choices necessary to put Connecticut on the long-term path to success, while making major investments in transportation as well as providing car and property tax relief.”
He thanked his “partners” in the General Assembly for their hard work and commitment.”
Lt. Governor Nancy Wyman said, “This budget expresses Connecticut’s commitment to our future — to a stronger transportation network that ensures we are moving people and products efficiently; a growing economy that creates good paying jobs for our residents and drives expansion of our global footprint; and strong communities with high-quality schools, accessible healthcare, and safe neighborhoods. I congratulate Governor Malloy and the General Assembly for their leadership and advocacy.”
The adopted state budget includes the largest transportation investments in Connecticut history, which will launch a new era of infrastructure improvements to give Connecticut a best-in-class transportation system.
This will include a $2.8 billion increase for infrastructure over the next five years, including $1.77 billion for rail, $613 million for highways, $281 million for bridges, $101 million for bicycle and pedestrian trails, and $43 million for bus service. In total over the next five years, approximately $10 billion will be spent on transportation between this budget, planned capital spending, and federal funds.
Projects include fixing the “Mixmaster” on I-84 in Waterbury, as well as the Hartford I-84 Viaduct. For rail, it will allow Connecticut to complete the Hartford Line running from New Haven to Springfield, and also to increase service on the New Haven Line with improvements to all branch lines including New Canaan, Danbury and Waterbury. It also includes investments in local bike and pedestrian improvements.