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Connecticut House Leaders Pass $40 Billion Budget After All-Nighter

Michelle Lee
/
Creative Commons
The Connecticut State Capitol in Hartford
Several corporations take issue with approximately $700 million in business tax increases.

Connecticut's House of Representatives passed a $40 billion state budget after Democratic leaders worked through the night to secure enough votes.

The bill, which needed 72 votes, was approved Wednesday morning 73 to 70. It now heads to the Senate, which by law must act on the package by midnight when the General Assembly is scheduled to adjourn for the summer.

Debate on the two-year fiscal package began at 5:30 am Wednesday. It's been heavily criticized by major businesses for raising taxes.

"When we look back to June 2011 -- the last time we did this -- we unfortunately see a similar scenario to what we're looking at now," said House Republican Leader Themis Klarides during testimony on Wednesday morning. "We see a $3 billion deficit. We see a $3 billion tax increase. ...We were told that we, citizens of Connecticut, we are in a situation where we have no choice but to raise taxes. And not just raise taxes, but raise them in the highest amount that has ever been raised in the state of Connecticut's history."

House Majority Leader Joe Aresimowicz argued in favor of the bill. "I'm sympathetic to the corporations in the state," he said to the House on Wednesday morning. "But when they come up here crying how this is just going to ruin their business, and you look back, and they say they pay zero tax -- zero. ...You rely on the services. You want the roads plowed for your workers to get there. You want to make sure the town is a nice town. It has schools so your workers have a place to go, and have a fine education. You want those things -- somebody's gotta pay for them."

The House originally planned to vote Monday on the budget agreement reached Sunday between Democratic legislators and Democratic Governor Dannel Malloy's administration. Those plans were scuttled after General Electric Co., Aetna Inc. and the Travelers Companies Inc. each released rare public statements taking issue with approximately $700 million in business tax increases.

The General Assembly is facing adjournment at midnight Wednesday.

If a budget isn't passed, the legislature will have to convene a special session to approve a budget for the fiscal year that begins July 1.

Charlie Smart contributed to this report, which includes information from The Associated Press.

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