HARTFORD, Conn. (WTNH) — Governor Malloy says big business, especially the state’s insurance giants, have told him they fully support his proposed revisions to those business taxes and they won’t be moving data operations out of state if it passes. He’s also telling parents of adult children with disabilities not to worry, he can find the funding for their programs.
The Governor returned from his trip to Europe on Tuesday night and has revealed that he has no negotiating sessions with legislative leaders on the state budget until Friday.
The Governor says reaction from some of the biggest companies in the state to his plan to roll back those business tax hikes has been entirely positive.
“We have heard that all of the insurance big data users are happy with that change and as a result won’t be forced to move some of those responsibilities out of the state,” said Gov. Malloy.
Big data users like Travelers and Aetna were alarmed because the original budget would have tripled the sales tax on data services. The Governor had originally supported that proposal, but now says it was a mistake, and that’s why he is proposing no change in that tax.
“I think that that was a mistake to talk about increasing that tax, particularly when our insurance industry in the state is so dependent on outside processing of data,” he said.
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He also says parents of adult children with intellectual and developmental disabilities should not fear that the quarter-billion dollars he wants to cut from the budget will affect the services for their kids.
“We can do this,” said the Governor. “We can get through this and continue to provide the level of services to all our citizens, including the disabled, on the budget that I’m proposing.”
He says that there will still be more money in the budget for these services, even with the reductions, because it is a “line item” in the current budget that has not been entirely spent.
“So to simply fund an item because that’s how you funded it in the past, knowing you’re going to have too much money in the account doesn’t make a whole lot of sense,” said Malloy.
There is still no specific date for a special session, but legislative leaders have told members to reserve the 25th, the 29th and the 30th.