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Gov. Malloy unveils $20 billion budget plan that includes tax increases, labor savings

HARTFORD — Gov. Dannel Malloy‘s $20 billion budget plan for the next fiscal year includes about $200 million in new revenue, assumes $700 million in labor...

HARTFORD — Gov. Dannel Malloy's $20 billion budget plan for the next fiscal year includes about $200 million in new revenue, assumes $700 million in labor cost savings from state employees and shifts more than $400 million in teacher pension costs to cities and towns.

The theme of Malloy's address was that the state will rise together or fall together.

"We are a small state, and our towns are interconnected," he said. "Growth in Hartford means growth in Bloomfield and Windsor. More jobs in Waterbury means more jobs in Cheshire and Beacon Falls. A more vibrant New London means a more vibrant Ledyard and Montville."

His budget contained a total of $18 billion in general funding. The state faces a $1.7 billion deficit in the year that begins July 1. Tax increases include about $100 million from eliminating the $200 property tax credit on state income tax returns and an additional $60 million on tobacco products.