Those expecting incoming state GOP leadership and Gov. Ned Lamont to agree on Connecticut”™s path forward should think again, as the governor dismissed one Republican proposal as a “pretty dumb idea” and indicated he would move forward with the payroll deduction to fund the Paid Family Medical Leave (FMLA) program as planned.
Lamont”™s remarks followed a letter written to him by House Republican Leader-elect Vincent Candelora (North Branford) outlining what the minority party feels are the necessary steps to provide tax relief for businesses and individuals still suffering from the Covid-19 pandemic.
Writing on behalf of himself and the other members of the House Republican Caucus, Candelora said four actions should be taken “immediately in order to provide some much-needed relief to our state’s workers job creators during this ongoing pandemic”:
- Direct surplus Covid relief money to replenish the state”™s insolvent Unemployment Trust Fund.
- Allow Connecticut”™s businesses to defer payment of their personal property taxes until April 1, 2021.
- Amend Executive Order 7W to extend the moratorium on the “Experience Rate ” that is applied to businesses that have had to lay off employees during the pandemic.
- Suspend the implementation of the additional 0.5% payroll tax on workers to fund the new Paid FMLA program.
Although the FMLA benefits are not scheduled to begin until 2022, Candelora wrote that the tax “represents an additional burden on our state’s workers which could not come at a worse time.”
At a press conference yesterday, Lamont dismissed the FMLA proposal by saying, “I think we have learned during this Covid crisis that we need paid medical leave more than ever. This is the exact wrong time to stop what”™s going to be a very important change for Connecticut families.”
As for replenishing the Unemployment Trust Fund — Connecticut has borrowed over $800 million to keep it running ”“ the governor said it sounded like a “pretty dumb idea,” given that hopes of another federal round of CARES Act funding, as well as the possibility that those low-interest loans could be turned into grants, remain high.
“They should give me some ideas on what they want me to take money away from in terms of our CARES Act funding,” he said of the state GOP. Noting that most of the funds have already been allocated, he added that, “It”™s not like there”™s a lot of money hanging around.”
Of Candelora”™s proposal to allow the deferral of personal property tax payments until April 1, Lamont said: “We can take a look, but let”™s start by talking to the mayors and first selectmen who are also trying to stay afloat. They need to make sure that they have property tax coming in ”” to maintain cash flow and keep teachers and firemen employed.”
Meanwhile, today Lamont signed an executive order to expand unemployment benefits for workers who have been impacted by the pandemic.
Under the terms of the order, the state Labor Department (DOL) will extend lost wage assistance to another 38,000 people who were earning less than $100 per week.
Those earning less than $100 per week between July 25 and Sept. 5 will be receiving emails tomorrow, followed by regular mail next week, explaining how they can get a lost wage supplement to bring their weekly incomes up to $100.
The average claimant will receive an additional $43 per week for those six weeks. The average unemployment benefit being paid by the DOL is around $270 per week.
