A new $32.46 thousand statewide rate for personal vehicles will reduce those taxes for residents of 75 highest-taxed cities and towns, saving them $100 million. Lamont hailed the phasing out of taxes on pensions and 401(k) plans, which will cost $40 million. It will also extend the state’s gasoline tax exemption, scheduled to end June 30, through December 1, at a cost of $150 million.

At a news conference, Democratic leaders and Lamont admitted there remained issues resolving how much to invest in the state’s unemployment trust, which stands at $493 million in debt, and the amount of federal pandemic bonus that will go to essential workers.

“Three and a half years ago when we inherited the deficit, for me it was important that we got a timely budget, on time, without raising taxes,” Lamont said. “Here we are more than three years later, we have a budget on time with significant tax cuts and investments in important social programs that we are doubling down on.”

There was no timeline on when the proposal might reach the Senate and House, but leaders were confident it would be done in time for the midnight May 4 adjournment deadline.

But Republican lawmakers have said state residents need more tax relief. House Minority Leader Vincent Candelora, R-North Branford, said there was “very little” permanent relief in the Democrats’ plan.

“I think we could have done more to provide broad, immediate, and even structural tax relief, like an income tax cut, but the Democrats chose to go it alone and ignore our concepts that would have a more substantial impact on our economy and household budgets. Candelora said, noting that GOP lawmakers have proposed an immediate sales tax cut.

At the Capitol briefing, which Republicans did not attend, Jeffrey Beckham, who as secretary of the Office of Policy and Management is Lamont’s budget chief, said the new budget was superior 2.5% to that of the second year of the biennium approved last year. The budget that ends June 30 shows a surplus of nearly $4 billion.

Sen. Cathy Osten, D-Sprague, co-chair of the budget drafting committee, said there are plans to invest $2 billion in teacher and state employee pension plans, in addition to $1 $.6 billion invested in the plans last year.

Lamont said the $100 million increase in child care programs is unprecedented. “I know what this means for families,” Lamont said. “I also know what it means for small businesses.”

Senate Speaker Pro Tempore Martin Looney, D-New Haven, said the past few years of budget constraints have created a pent-up need to invest in social services, child care, mental health, support for cities and targeted tax relief for underserved communities. .

“It was a time when we were actually excited about this process rather than dreading it because we saw that there were opportunities here to do things that needed to be done, rather than knowing which of our things loved ones would take a hit,” Looney told reporters. .

House Speaker Matt Ritter, D-Hartford, said looking ahead, investments should pay off in years to come. “We’re not sacrificing fiscal discipline while we’re making these investments in early childhood or mental health,” Ritter said.

“It’s a budget that fits the moment,” said House Majority Leader Jason Rojas, D-East Hartford, a former finance committee chairman. “We are all aware of the moment in which we find ourselves, coming out of a pandemic and knowing the great and enormous need that exists.

“What we’re talking about here tax-wise is a half-billion-dollar tax cut for Connecticutans,” said Rep. Sean Scanlon, D-Guilford, co-chair of Tax-writing Finance, Revenue and Surety Committee. He said that with the recent expiration of the federal child tax credit, the state credit of $250 per child will help many families.

Scanlon noted that the current $200 property tax credit is limited to seniors and families with children, so the expansion — a variation of the governor’s budget proposal in February — “will radically change the number of people eligible for this credit” when it increases to $300. .

In addition, there will be $10 million in student loan assistance and a $40 million increase in the state earned income tax credit for low-income families.

State Sen. John Fonfara, D-Hartford, a longtime finance committee co-chair, said Lamont reminded him of the obligation to reduce unfunded liabilities that amount to more than 50 cents on every dollar of income.

“If you don’t have money committed to child care, you can’t work,” said Rep. Toni Walker, D-New Haven, co-chair of the appropriations committee. “Education is huge so parents know their kids are going to excel, especially kids with special needs.” She highlighted the importance of social workers in underserved communities as well as summer programs and other initiatives totaling $25 million.

“We focus on the trauma of children so that they can be successful when they move, so that we can deal with that trauma in the best and most appropriate way,” Osten added.

Another top Republican in the General Assembly, Senate Minority Leader Kevin Kelly of Stratford, said the state is “overtaxing” residents, while GOP lawmakers recently proposed cutting fees. taxes of $1.2 billion.

“I am disappointed and disappointed by the delayed and limited tax relief offered by Connecticut Democrats today,” Kelly said in a statement. “Democrats are offering tax credits, which means families have to pay more taxes before they get anything back in a year. That’s not an immediate relief. Nor is it a permanent relief. Inflation is now crushing Connecticut families. They deserve far greater relief than Democrats are willing to provide.”

Gian Carl Casa, president and CEO of the Connecticut Community Nonprofit Alliance, said he was happy with the amount earmarked for social service providers.

“The increased funding for community nonprofits in today’s budget agreement will improve the lives of thousands of people across Connecticut who are served by nonprofits and the staff who provide those services. “, did he declare. “Connecticut nonprofits have struggled for more than a decade without funding increases that we believe left behind $460 million in funding for the sector. Today’s agreement to Further increasing funding for community benefits brings us closer to that goal, and we thank legislative leaders and Governor Lamont for their support.

[email protected] Twitter: @KenDixonCT