Governor Malloy's proposed budget takes many steps to assist nonprofits who provide health and human services on the state’s behalf. His proposed budget seeks to fund caseload growth in the Departments of Social Services, Children & Families, Developmental Services and Mental Health and Addiction Services. Additionally, new bonding projects to support provider infrastructure are also proposed for nonprofits that contract with these four agencies.
Governor Malloy also proposes several sources of increased revenues, including an across-the-board increase in the state income tax, as well as a .25% increase in the sales tax, which will now be applied to several previously tax-exempt services. He also calls for the state’s first-ever Earned Income Tax Credit (EITC) to assist low-income working families.
“While we may not agree with all of the details of the tax package, we understand the difficult choices Governor Malloy and legislators need to make over the next several months to address a nearly 20% budget deficit, the largest in State history,” said Ron Cretaro, Executive Director, Connecticut Association of Nonprofits. “We are glad the Governor recognizes that the state cannot cut its way out of this deficit and has proposed significant new revenue options to help avoid far-reaching cuts to vital programs. We are however concerned with some of the proposed reductions to several Medicaid-funded services for the poor and the overall impact that has on the well-being of nonprofit clients and consumers who utilize these services.”
As partners with the state, nonprofits provide efficient, cost-effective health and human services on the state’s behalf that help ensure Connecticut residents can live healthy, safe lives. CT Nonprofits has long called on the state to spend taxpayer dollars wisely by holding programs accountable through methods such as Results Based Accountability, a position which it reiterates again today.
“While the Governor has not proposed sweeping cuts to provider services, we continue to caution lawmakers that making broad cuts to successful programs instead of targeted cuts to programs that aren’t working will only cost the state more money in the long run,” said Liza Andrews, Public Policy Director, Connecticut Association of Nonprofits.
Following the state budget announcement, CT Nonprofits will work with the Governor and legislators over the next several months to seek sensible ways to balance the budget without doing further harm to nonprofits that have faced three years of cuts coupled with skyrocketing demand for services. Throughout the process, CT Nonprofits will advocate for vital and necessary funding so that Connecticut’s nonprofit providers can ensure that adequate services will be in place for the state’s most vulnerable residents.
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