House Republicans Introduce $27.9B Budget Adjustment Plan

by Donald Eng

HARTFORD, CT — House Republicans are touting a budget adjustment plan they say will deliver hundreds of millions of dollars to local school systems while reducing property taxes and eliminating tax on things like Social Security benefits and children’s clothing.

“Connecticut is staring down a projected budget deficit that could grow worse before it gets better and the majority’s answer is to spend more and hope for the best,” said Minority Leader Vincent Candelora of North Branford. “That’s not a strategy, that’s a recipe for the next tax hike.”

Dubbed the “Pathway to Affordability,” the $27.9 billion plan includes $365 million in what Republicans called the School Taxpayer Relief and Affordability Plan (STRAP). The plan would increase the $2.3 billion Education Cost Sharing program by just under 15%, while maintaining the percentage of state funding each community receives. Additional funding ranges from $33.6 million for Hartford down to about $4,400 for Sharon.

“Connecticut is underfunding education, using a fatally flawed formula, which has not kept up with what it actually costs to educate a child,” said Rep. Tammy Nuccio of Tolland, the House ranking member of the Appropriations Committee.

Nuccio said the added state funding for education would provide local tax relief since education is the largest budget item in municipal budgets.

In other actions, the Republican proposal increases the maximum property tax credit to $650 and expand income eligibility, cuts $20 million from a state levy on insurance companies, removes the Passport to Parks fee from vehicle registrations, and cuts the sales tax on vehicles priced between $50,000 and $75,000 from 7.75% to 6.36%.

FILE — House Speaker Matt Ritter addresses the House Chamber during the Feb. 4, 2026 session. Credit: Donald Eng / CTNewsJunkie

House Speaker Matt Ritter, D-Hartford, said he was happy Republicans were on a similar page with his party in sending more money to local schools and addressing the affordability crisis that he said has been exacerbated by the policies of President Donald Trump.

“I’m sure I will have a number of productive conversations in the coming weeks with Rep. Candelora and his budget team,” Ritter said.

The bulk of the new revenue to fund the plan comes from an idea to recover an estimated $340 million from New York by challenging that state’s rule that about 80,000 Connecticut residents who work remotely for New York-based companies must pay state income taxes to New York despite never leaving Connecticut. That plan, though, would entail either a negotiated settlement or legal action against New York, and Candelora acknowledged that could be a long process with an uncertain outcome.

House Minority Leader Vincent Candelora speaks about the state budget on April 14, 2026 at the State Capitol in Hartford, CT. Credit: Donald Eng / CTNewsJunkie

“One of the areas that may have to happen is that we use a reserve to offset this,” Candelora said. “But I think now is the time to start pushing this process.”

He added that New Hampshire and Massachusetts had resolved a similar issue, as had New York and New Jersey.

“This budget is flexible enough to address it, I think, but we need to at least start this conversation and try to get this money from New York,” he said.

Other savings include eliminating state-funded health insurance for undocumented immigrants, eliminating text messaging to incarcerated people and halting the practice of funding vacant state employee positions.