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Malloy Signs Budget, But Nixes Portions Affecting Hospital Tax

Malloy Signs Budget, But Nixes Portions Affecting Hospital Tax”

Gov. Dannel P. Malloy announced Tuesday he has signed a bipartisan state budget to finally stop Connecticut's lengthy, fiscal stalemate, but he used his limited line-item veto power to nix portions of the legislation related to a problematic tax on the state's hospitals.

Malloy said there are language issues on the hospital tax which could put the state on the hook for millions of dollars.

"After 123 days without a budget, it is time to sign this bipartisan bill into law and continue the steady and significant progress our state has made over the past several years", Malloy said.

Malloy did veto appropriations for the hospital tax, a line item that the governor said was written in a way that would make hospitals ineligible for federal Medicaid reimbursement and create a $1 billion hole in the budget.

While Malloy said this isn't a budget he would have negotiated, it did incorporate many of his own priorities. The agreement had been crafted by legislative leaders, without Malloy in the room. "In the coming weeks", his office said, "the administration will outline more specific ideas to address these cuts, avoid their immediate negative impact on consumers, and ensure that CT can maintain its commitments to clean energy investments in the energy marketplace".

"Problematic assumptions" on both the revenue and expenditure sides of the budget, "which could be unachievable over the biennium and contribute to exacerbated structural deficits in the out years". "And I do have very real concerns about many aspects of it". "Whether that is an amendment to the document or an override, I think the leaders will have a conversation". "I appreciate the work of the General Assembly in passing a budget to my desk that I can sign".



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