Budget & Taxes

This Senate resolution approves a settlement agreement regarding a lawsuit against the Department of Mental Health and Addiction Services, directly affecting state funding and the treatment of individuals in forensic psychiatric facilities. The key provision requires the state to use General Fund money to help patients who are clinically ready transition from Whiting Forensic Hospital to community-based mental health services. By signing this bill, the Senate authorizes approximately $3.5 million in costs for the 2027 fiscal year and $7 million for 2028 to cover these transitions and related legal fees. If the General Assembly does not approve the agreement within the specified timeframe, the settlement becomes unenforceable.

This bill creates a state registry for short-term rentals in Connecticut, requiring operators and owners to register each property annually with the Department of Revenue Services by January 1, 2027, unless the property is already licensed by a local municipality. Registration includes paying a $100 fee per property and providing owner and operator contact information, with penalties of up to $1,000 for unregistered listings. The bill also allows municipalities to vote on adding an optional supplemental tax of up to 2.75% on short-term rental stays, which would be collected and remitted by operators or owners alongside existing state taxes.

This bill establishes a state-funded bridge program designed to help vulnerable individuals maintain access to food, housing, and healthcare benefits while they transition through changes in federal work requirements. The program would target veterans, homeless persons, adults with autism, foster care aging out, and older adults at risk of losing Medicaid or nutrition assistance, requiring state agencies to develop a plan by October 2026. Key provisions include supplementing existing job support programs, providing temporary state-funded assistance equivalent to current benefits, recommending long-term housing solutions, and documenting employability for potential federal waivers. The plan must be submitted to legislative committees by January 2027 along with funding estimates and implementation timelines.

This bill creates the Connecticut Growth Investment Fund, allowing state residents to invest a portion of their potential estate tax liability in exchange for tax benefits. Connecticut Innovations, Incorporated will manage the fund, investing the money exclusively in local businesses while reserving at least 10% for ventures founded by university students or faculty. Residents can choose to contribute 30%, 40%, or 50% of their estimated estate tax exposure, with higher contributions receiving priority access to investment returns. If a resident stays in Connecticut for at least five years after investing, their initial payment remains in the fund and their estate tax liability is eliminated; if they leave the state or die sooner, they may receive their money back or forfeit some returns based on how long they held the investment.

This bill creates a new program that allows private investors to fund community initiatives in economically disadvantaged areas, with repayment and bonuses tied to achieving specific performance goals. The program involves partnerships between the state Department of Economic and Community Development, community development corporations, service providers, and independent evaluators to deliver education or workforce training programs. Investors receive their capital back plus a performance-based premium only after an independent evaluator verifies that agreed-upon metrics, such as kindergarten readiness or grade-level reading proficiency, have been met. The bill establishes a five-year agreement structure that outlines performance timelines, service fees, and success payment schedules contingent on measurable outcomes.

This bill establishes a new grant program to help municipalities and the Department of Emergency Services and Public Protection pay for training police officers in impaired driving enforcement and drug recognition. The program allows these entities to receive funding either to reimburse costs for training already completed on or after July 1, 2026, or to pay for future training sessions. Additionally, the bill changes how certain cannabis taxes are distributed, directing five percent of tax revenue from fiscal years 2027 and 2028 onward into a dedicated account that will fund this training program. The Secretary of the Office of Policy and Management will manage the grants and submit annual reports to the legislature starting in 2028.

This bill modifies Connecticut's personal income tax rules by updating the list of items that can be subtracted from gross income when calculating taxable income. It directly affects Connecticut residents filing state income tax returns by clarifying and adjusting various deductions related to federal tax treatment. Key provisions include maintaining existing deductions for certain federal tax-exempt income, interest on state bonds, and Social Security benefits, while also specifying how to handle amortizable bond premiums on bonds whose interest is taxable under state law but exempt from federal tax. The changes take effect for taxable years beginning on or after January 1, 2027, and primarily align state tax calculations with corresponding federal tax rules.

This bill creates a new state fund called the municipal growth account to distribute payments to Connecticut towns and cities based on their local tax revenue growth. Starting in fiscal year 2031, municipalities will receive a dividend equal to 0.5% of their tax revenue from sales, wages, and business activity within their borders, provided this amount exceeds their 2026 baseline. The funds must be deposited into a municipal revenue stabilization fund and can only be used for municipal services or to lower local tax rates. The state retains a share of these dividends for projects where it provided capital to support economic growth, and the Office of Policy and Management will track and report these distributions annually.

This bill requires state agencies that hire fiscal intermediaries to handle payroll to include financial penalty clauses in their contracts. Starting October 1, 2026, any contract for payroll services must specify that the intermediary must pay a penalty equal to 50% of unpaid wages if they fail to process payroll on time. The state agency responsible for the contract will enforce these penalties, and if the intermediary does not pay them, the Attorney General can sue to recover the amount. This change directly affects state departments and other executive branch agencies that currently use outside organizations to manage employee pay.

This bill updates Connecticut's Temporary Family Assistance program to help prevent families from losing benefits when they earn more money, a situation known as a benefits cliff. It allows the state to run a separate, fully state-funded version of the program to avoid federal financial penalties while keeping the same eligibility rules as the federal program. The legislation also creates specific exemptions from the 36-month time limit for families with incapacitated or elderly caretakers, pregnant women, and minor parents finishing high school, and permits up to two six-month extensions for families facing barriers like domestic violence or low income.