Connecticut House Bill HB05095

Connecticut 2014 Regular Session

• Introduced: 2/11/14
• Refer: 2/11/14

Caption

An Act Concerning A Dedicated Source To Be Used For The Budget Reserve Fund, Excess Debt Payments And Excess Pension Payments.

Impact

If enacted, this legislation would amend chapter 229 of the general statutes, thereby impacting how personal income tax revenues are managed in Connecticut. By establishing a system for segregating excess income tax from unearned income, the bill seeks to bolster the Budget Reserve Fund, ensuring that the state has more resources available for financial obligations relating to debt and pensions. This could lead to increased fiscal stability and readiness in times of economic uncertainties or downturns.

Summary

House Bill 05095 aims to establish a dedicated source of revenue to be utilized for the Budget Reserve Fund, management of excess debt payments, and additional pension payments. The bill outlines a process where unearned income reported in Connecticut's personal income tax is analyzed to determine a base amount of revenue. Any income tax collected on amounts exceeding this base would then be segregated from the General Fund and allocated specifically for the mentioned financial responsibilities, starting in 2017.

Contention

Notable points of contention regarding HB 05095 may center around the implications of segregating tax revenues and how this strategy affects overall state funding flexibility. Stakeholders such as financial analysts, government officials, and taxpayers could raise concerns about the pending allocations, questioning whether this model could constrain budgetary flexibility in other areas or limit the state's ability to respond to emergent funding needs outside the defined scope of debt and pensions.