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  • FAQs: Proposal to Shift a Portion of CT’s Income Tax to a Payroll Tax

    This frequently asked questions document addresses many of the questions that have been raised surrounding the payroll tax proposed and designed by the Connecticut School Finance Project, which would serve as a partial replacement for the state income tax and help reduce individual and business tax burdens as well as mitigate the impact of recent federal tax changes on Connecticut taxpayers.

  • Governor Lamont’s Proposed Changes to Connecticut’s Teachers’ Retirement System (TRS)

    Governor Ned Lamont’s proposed biennial state budget for fiscal years 2020 and 2021 contains several changes to the Connecticut Teachers’ Retirement System (TRS). The purpose of this explainer document is to detail Governor Lamont’s proposed changes to the TRS and to analyze the projected impact of these changes on the system and the State of Connecticut. This resource also includes the actuarial projections, from Connecticut's Office of Policy and Management, for the governor's proposed changes to the TRS.

  • Connecticut's Municipal Employee Retirement System

    As a supplement to the Connecticut School Finance Project’s January 2018 report, Factors Contributing to Health of State Employee Pension Funds, this policy briefing analyzes the health of Connecticut’s Municipal Employee Retirement System (MERS), examines the factors contributing to the system’s relatively healthy current funding level, and discusses the features of the system that differentiate it from other public pension systems, such as Connecticut’s State Employees Retirement System (SERS).

  • Governor Lamont's Proposed Municipal TRS Contributions

    Governor Ned Lamont’s proposed biennial state budget for fiscal years 2020 and 2021 contains municipal contributions to the Connecticut Teachers’ Retirement System (TRS), which has traditionally been funded by the State of Connecticut and contributions from teachers. This document details how these municipal contributions to the TRS are calculated, and provides example calculations of the FY 2020 municipal contribution. A model of these calculations from the State of Connecticut's Office of Policy and Management is also available, as well as interactive visualizations detailing the different components of the proposed municipal contributions.

  • Distributing Non-Education State Aid to Municipalities through a Needs-Capacity Formula

    The State of Connecticut contains 169 towns with a wide range of wealth and resident need. Currently, the State of Connecticut provides financial aid to towns through a variety of statutory and non-statutory grant programs. The current structure for non-education town aid does not sufficiently address the underlying municipal fiscal disparities that are caused by the unequal costs of delivering services and the low revenue raising capacity of towns in Connecticut. The purpose of this policy briefing is to introduce and examine how Connecticut can address municipal fiscal disparities by using a needs-capacity formula to distribute non-education town aid.

  • FAQs: Common Features of Property Taxes

    In fiscal year 2015, property taxes accounted for 38 percent of total state and local revenues in Connecticut. This frequently asked questions document looks at Connecticut's property tax system and discusses common property tax features such as a split roll tax, homestead tax exemption, a meaningful property tax circuit breaker, or an assessment schedule that ensures accurate grand list valuations.

  • Payroll Tax in Response to Federal Tax Changes

    This policy briefing introduces and examines how the State of Connecticut can replace a portion of the state income tax with a payroll tax on all W-2 wages to mitigate the negative impacts of federal tax changes on Connecticut taxpayers, and potentially yield more state revenue while reducing the federal tax liabilities of Connecticut residents.

  • Connecticut's State Bonding Process & Restrictions

    This policy brief provides an overview of the existing restrictions on the Connecticut general obligation bonding process, the additions to these restrictions contained in the biennial budget for fiscal years 2018-19 (Conn Acts 17-2 (June Special Session)), and changes made to bonding restrictions under various public acts passed during the 2018 legislative session.

  • Connecticut's Spending & Volatility Caps

    As part of the biennial budget for fiscal years 2018-19, the Connecticut General Assembly passed two fiscal accountability measures, known as the spending cap and the volatility cap. These measures include changes to multiple sections of the Connecticut General Statutes, which are discussed in this policy brief.

  • Connecticut's Fixed Costs (INFOGRAPHIC)

    Fixed costs are an increasing portion of the Connecticut state budget, and are expenditures the State is obligated to make. In fiscal year 2018, almost half ($9.15 billion) of Connecticut's total General Fund expenditures were categorized as "fixed costs." As the State's fixed costs are increasing, the amount of money available for the discretionary — or non-fixed — portion of Connecticut's General Fund is shrinking. This infographic details the items that make up Connecticut's fixed costs, and how they have grown over the years.