Democratic lawmakers called for legalizing marijuana, taking a step toward tolls, cutting aid to towns, and opening a third casino as part of budget recommendations released Tuesday.
Even though marijuana legalization is included in the proposal, Democratic legislators concede that they do not have enough votes in their own caucus to pass the measure. But they placed the item into the package to spur conversation and help balance the $20 billion annual budget.
In addition to marijuana, the Democratic budget proposes closing a prison and opening a third casino that might eventually be constructed in East Windsor, officials said. This could prove to give those that enjoy pick7.bet’s (https://www.pick7.bet/casinos-not-on-gamstop) players more places to enjoy casino games, a great addition to the local economy. Some Democrats have pushed strongly for the casino, saying that it would create 1,700 construction jobs and another 1,700 permanent casino jobs to compete with a nearly $1 billion casino by MGM that is currently under construction near Interstate 91 in Springfield. The plan would also preserve casino jobs in southeastern Connecticut, according to tribal leaders.
The proposals came one day after Malloy made his own recommendations for closing a growing budget deficit. Malloy was originally trying to close a $1.7 billion gap for the next fiscal year, but subpar income-tax revenue has pushed the deficit to more than $2 billion.
The Democratic budget proposal also came on the same day that Senate and House Republicans pitched their own revisions. Top lawmakers and Malloy are scheduled to meet Wednesday to begin negotiations.
While Malloy proposed deep cuts in aid to municipalities of his own, Democrats are calling for reducing local aid by $200 million in each of the next two years. They would reduce the educational cost-sharing grant to municipalities by $10.8 million in the first year and $9.3 million in the second year.
The wide-ranging plan also calls for selling 35 acres of state land near the I-84 viaduct in Hartford for $45 million. It was not clear exactly what land would be sold, however.
Democrats are seeking to maintain the maximum $200 property tax credit only for the elderly and those with dependents, while Republicans are seeking no changes in the credit. By contrast, Malloy in February proposed eliminating the popular credit, which would save the state $105 million per year.
The Democratic plan also closes the Southbury Training School, eliminates eight committees of the legislature, and folds five state departments and offices into other larger departments. The departments of aging, housing and agriculture would be moved into other departments and the offices of higher education and early childhood would be moved into the education department.
“Confronting Connecticut’s budgetary challenges requires difficult decisions across the board,” said Senate President Pro Tem Martin Looney, a New Haven Democrat. “The proposal offered by Democrats in the Senate and House protects our social safety net and invests in our workforce while implementing important regionalism strategies to save taxpayers $100 million.”
Like other budgets, the Democratic proposal does not include any increases in the income, sales or corporation taxes. The plan would phase out the income tax on Social Security benefits – a popular idea that has been pushed by Republicans and Democrats.
The Democratic proposal calls for nonunion employees to take three furlough days for a total savings of $4.67 million. It would also close an undisclosed prison for net savings of $8.1 million. The budget also scraps a controversial proposal to raise gun permit fees, which would have generated $9 million but drew sharp criticism from gun owners.
The budget includes the first step toward tolls, but lawmakers were unclear over whether they will need to vote twice on tolls – once to start the process and then again next year after the tolling sites have been chosen.
Rep. Tony Guerrera, the longtime co-chairman of the transportation committee, said the state transportation department – rather than legislators – should decide exactly where the tolls would be placed.
“That’s not our business,” Guerrera said. “That’s what they do. They have to get the green light.”
Rodney Butler, the chairman of the Mashantucket Pequot Tribe, and chairman Kevin Brown of the Mohegan Tribal Council, hailed the call by Democrats on gambling – even though East Windsor was not specifically mentioned by name in the proposal.
“The inclusion of new gaming revenue in the Democratic budget is a clear sign that leaders are hearing our message loud and clear,” the tribal leaders said. “We can and should be part of the state’s plans to solve its fiscal crisis. There is only one plan that will prevent the loss of 9,300 jobs and millions in state revenue. And we’re going to continue to push every day to get the job done.”
There are two bills pending in the legislature concerning casino expansion. One would allow a partnership of the tribes to compete with the large casino under construction in Springfield. A competing bill would open up the process to more casino operators in other areas – in addition to the tribes and their land.
“There is interest in advancing the process for a third casino, but not so far as to say it should be in one location or another,” said Sen. John W. Fonfara, a Hartford Democrat who co-chairs the legislature’s finance committee. “Whether it’s the tribes in East Windsor or someone somewhere else, the revenue reflects what we could minimally expect from a third casino.”
The revenue, Fonfara said, is tied to application and licensing fees.
Uri Clinton, senior vice president and legal counsel for MGM Resorts International, said, “The only realistic way to get to the number that’s being mentioned is to open up the process to allow for competitive bidding among all qualified developers, and require licensing and application fees as part of that process.”
Marijuana
The marijuana issue was placed into the budget proposal, even though some Democrats say that marijuana should not be legalized only for financial reasons.
The revenue numbers released Tuesday showed that marijuana would raise more than $60 million in the first year and $180 million in the second year.
Although several legislative hearings were held on legalizing marijuana this year, the idea was scuttled last month when there was not enough support in the General Assembly. The legislature’s judiciary and public health committees did not vote on the proposal by their deadlines.
Legalizing and taxing marijuana using a model similar to Colorado’s would bring in nearly $64 million in tax dollars in the first full year, according to a report by the nonpartisan Office of Fiscal Analysis.
One of the biggest hurdles has been Malloy’s continuing opposition. While Malloy has not publicly used the word “veto,” his strong opposition shows that lawmakers would need a two-thirds vote in both chambers to overcome a potential veto.
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