[Youth-list] CT Budget Accord Reached

[JMRab at aol.com]

     (http://www.courant.com/)    
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_http://www.courant.com/news/politics/hc-ctlegbudget0619.artjun19,0,5526054.story?coll=hc-headlines-home_ 
(http://www.courant.com/news/politics/hc-ctlegbudget0619.artjun19,0,5526054.story?coll=hc-headlines-home)  
Budget  Deal Set 

Tentative Accord  Increases Spending For Health Care And Education, But Keeps 
Property Tax  Credit As Is 

By  CHRISTOPHER KEATING
Capitol Bureau Chief

June 19  2007

State budget negotiators reached a tentative agreement Monday  night on a 
deal that would provide large spending increases for health  care and public 
education, but little relief for taxpayers. 

The  deal, which the House and Senate must still ratify, calls for keeping 
the  popular property tax credit at the current maximum of $500, according to a  
person familiar with the negotiations. 

If enacted, that would  represent a blow to Democrats who have pushed for 
months to increase the  credit to $1,000. The agreement also does not include any 
increase in the  state income tax rates, which Democrats had sought. 

The agreement  includes "historic increases in health care spending" and 
"historic  increases" in educational cost-sharing funds that are sent to cities 
and  towns, according to the person familiar with the negotiations.

The  increases involve millions of dollars, but precise totals were not  
available Monday night. 

One setback for taxpayers would be a 33  percent increase in the state's 
cigarette tax to $2 per pack, up from the  current $1.51 per pack. 

One aspect that remains unclear Monday  night was a trade-off between 
creating an earned income tax credit for the  working poor and phasing out the estate 
tax for those who die with more  than $2 million.

Gov. M. Jodi Rell and Republican legislators had  pushed for the estate tax 
phase-out while Democrats had pushed for the  earned income tax credit. 

No date has been set for a possible  vote. 

Although Democrats hold more than two-thirds of all seats in  the 
legislature, they have not been able to generate enough votes for a  veto-proof margin to 
enact a progressive income tax. Rell has fought  against higher tax rates for 
the rich, and so far she has prevailed.  

The two sides are trying to reach a final agreement before the new  fiscal 
year begins on July 1.

Contact Christopher Keating at  ckeating at courant.com.  
Copyright 2007, _Hartford Courant_ (http://www.courant.com/)    
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