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2022 Legislative Wrap-up!

Back • May 5, 2022 • Emerging Issues, Family Economic Security, Fiscal & Economics

Dear Voices Community –

The 2022 legislative session has concluded! This year, the Connecticut General Assembly passed a FY23 budget adjustment that provides unprecedented support to the state’s hardworking families. We are pleased to report that a number of the policies we have fought for, together, are included:

· over $100 million toward child care in the upcoming fiscal year;

· $223 million toward children’s mental health resources over two years;

· an expansion of Medicaid for immigrant children 12 and younger;

· an increase in the Connecticut earned income tax credit to 41.5% of the federal level;

· a $250-per-child (up to three children) Connecticut child tax credit, a state first (!);

· an increase in Special Education funding that helps reduce the local property tax burden;

· an increase in the property tax credit to a maximum of $300 per tax filer; and

· an expansion of the scope of the DRS tax incidence study.

We cannot thank you enough for all your support, thoughtful push, and tireless collaboration to make this possible. You are the reason for why any of these investments have been funded and our gratitude is overflowing.

I’d be remiss if I didn’t note that while we celebrate the incremental, we always aim for transformational change. We recognize that this budget is imperfect. Like all of you, we hoped that more people-first policies had passed this year as well as more funding had been appropriated for what was passed. However, we also know that families need help NOW and that an imperfect budget isn’t a reason to throw the proverbial baby out with the bathwater. This budget seeks to address the needs of the moment and it’s in this spirit that we conclude it does. More work is needed and, together, more work will be done—ensuring this budget provides a solid foundation from which continued progress can be made.

We look forward to renewed partnership in the fight for equity ahead!

In solidarity,

Emily Byrne
Executive Director

2022 Legislative Highlights

The list below is not exhaustive—there are so many other bills that we advocated for and that passed with your help.

Our choice to limit the cataloguing of our actions this year is because we are replacing our traditional “Legislative Session in Review” with a “Candidate Briefing Book,” which will be released sometime in June… so, stay tuned!

FAMILY ECONOMIC SECURITY

· Urban Homeownership Loan Fund: The budget establishes a fund to help residents in lower-income neighborhoods purchase homes, was included in the budget. $20 million of Urban Act bonds was earmarked for this initiative.

· Reducing Lead Poisoning: The budget strengthens early intervention in instances of lead poisoning by gradually reducing the blood lead level that triggers parental notifications and home inspections to align with CDC recommendations; empowers the State Department of Public Health to require more frequent testing of children living in cities and towns where exposure to lead is most common; and commits $30 million in funding from the American Rescue Plan for lead case management and remediation programs.

· Early Child Care: The budget includes over $100 million in additional funding for child care. Also included in FYs 23 and 24, the State requires the State Office of Early Childhood to administer an emergency stabilization grant program for certain school readiness programs and child care centers receiving state financial assistance.

· Low Cost Bank Accounts: One of the policies we’ve been advocating for these past two years is the elimination of bank overdraft fees. This year, the Legislature passed a requirement for state chartered banks and credit unions to offer a low-cost, no overdraft fee account (e.g. CFE’s Bank On account). These options will help Connecticut families keep more of their hard earned money in their pockets.

EMERGING ISSUES

· Childhood Mental and Physical Health Services in Schools: The budget expands health services in schools, increases wages for child care workers, and creates a minority teacher scholarship fund.

· HUSKY for Immigrants: The budget expands Medicaid coverage for children 12 years old and younger, irrespective of immigration status beginning January 1, 2023—and they will keep their insurance through age 19.

· Excess Cost Grant for Special Education: The budget expands special education funding by an estimated $15.5 million, and replaces the existing structure with a tiered threshold system based on the property wealth of a town.

TAX REFORM

· Property Tax Credit: The budget increases the Connecticut property tax credit against the state income tax from a maximum of $200 to $300 and it also expands the number of families eligible to claim the credit.

· CT Earned Income Tax Credit: The budget increases, for one year, the Connecticut EITC to 41.5% of the federal level, providing low-income residents making less than $58,000 a year an additional average tax cut of $225, for a total average tax cut of $850.

· CT Child Tax Credit: The budget creates a new, one-time Connecticut CTC that will provide $250-per-child (for up to three kids) to single parents making under $100,000 and couples making less than $200,000 this year.

· Tax Incidence Study: The budget expands the scope of the existing State Department of Revenue Services tax incidence study to include tax rates for the top 1% and 5% of tax filers, and moves the date for the next study up from February 2024 to December 2023.

THINGS TO NOTE

· CT Baby Bonds: The budget delayed the effective date of the program for two years as well as the funding authorizations. Babies born after July 1, 2023 will be eligible rather than after July 1, 2021. As such, beginning July 1, 2024, $50 million a year is to be authorized and available for approval by the State Bond Commission; the authorizations will continue to run for 12 years, ending in 2036. There will be no change to the overall funding amount of $600 million. While the delay is disappointing, Baby Bonds remain in State statute and the amount of funding authorized is monumental.

· Sustainable Funding: The budget makes the expansion of early child care and the state EITC, as well as the creation of the state CTC temporary. Our hope is that these appropriations this year will underscore the import of their continued funding in the future. However, as we saw with the scaling back of CT Baby Bonds, people-first policies and resourcing require all of us working together to fight for them. We look forward to advocating on the front lines with you next year!