December 22nd Newsletter

December 22, 2023
Dear Friends,

From my family to yours, I want to take a moment to send my best wishes for the holiday season, and express that it is my sincere honor to represent you and work on issues that matter to our community and Connecticut.

Remember that as we celebrate, we also share many blessings, so in the spirit of the season, please spread joy and make these holidays truly special. 
I hope the holidays bring you peace, happiness and good health today, tomorrow, in the New Year, and beyond it.

Thanks for taking the time to read the news and notes below!
 
Tax Cuts Effective January 1

Three significant tax relief measures will take effect in Connecticut at the start of 2024, and among them are an income tax reduction, an increase in a tax credit targeting the lowest-income workers, and an expansion of exemptions on certain pension and annuity earnings to benefit seniors.

They are the result of the fiscal year 2024-2025 overwhelmingly bipartisan state budget (Public Act 23-204) passed and signed into law this year.

In total, the three measures will reduce taxes for state taxpayers by approximately $460.3 million. Due to the fiscal guardrails and smart management of the state budget, nonpartisan analysts anticipate that revenue growth will exceed growth in fixed costs for the next several years.

Beginning on January 1, 2024, a reduction in Connecticut’s income tax rates will take effect, making this the first time that rates have been reduced in the state since the mid-1990s. The changes enacted in 2024 will see a decrease in the two lowest rates:

  • The 3% rate on the first $10,000 earned by single filers and the first $20,000 by joint filers will drop to 2%.
  • The 5% rate on the next $40,000 earned by single filers and the next $80,000 by joint filers will drop to 4.5%.

The relief is targeted toward middle-class tax filers and is capped at $150,000 for single filers and $300,000 for joint filers. The reduction is estimated to benefit more than one million tax filers.

Connecticut’s new Earned Income Tax Credit (EITC) change – which took effect retroactively for 2023 and will become available when recipients file their personal income tax returns in early 2024 – places the state among the top five in the nation with the largest rates on this popular tax credit program.

Under the change, the Connecticut EITC is increasing from 30.5% to 40% of the federal EITC. This will provide an additional $44.6 million in state tax credits to the approximately 211,000 low-income filers who receive the credit.

The Connecticut EITC is a refundable state income tax credit for the lowest-income working individuals and families that mirrors the federal EITC. Typically, more than 95% of filers who receive this credit are families with children.

Also effective in 2024 is an expansion of the state’s existing deductions for certain IRA distributions and pension and annuity earnings to benefit seniors. This is something that I have been advocating for and am glad it came to fruition. Specifically, the state budget eliminates the retirement income tax cliff by adding a phase-out for allowable pension and annuity and IRA distribution deductions against the personal income tax.

Approximately 200,000 filers benefit from the currently enacted retiree exemption limits. It is estimated that with these changes, an additional 100,000 filers could benefit from the elimination of the retirement cliff via the exemption phase-out.
 
New Laws
When we ring in 2024, some new laws take effect that were passed during the 2023 legislative session addressing key issue areas including early voting, health and mental health, and online privacy and data protection.

There will also be an increase in the minimum wage effective January 1 from $15 to $15.69 made possible through legislation passed in 2019, which implemented five incremental increases in the minimum wage followed by future adjustments that are tied to the percentage change in the federal employment cost index.

Although extensive, below I share some highlights, and a link to the complete list. Please feel free to share and reach out to my office if you would like more detail on any of the new laws.

EARLY VOTING (PA 23-5)

Establishes a framework for early, in-person voting requiring a 14-day early voting period for general elections, a seven-day period for most primaries, and a four-day early voting period for special elections and presidential preference primaries.

HOSPICE AND PALLIATIVE CARE (PA 23-174)

Includes the creation of a Hospice Hospital at Home pilot program to provide in-home hospice care to patients through in-person visits and telehealth.

PROTECTING MATERNAL HEALTH (PA 23-147)

Establishes a new license category for freestanding birth centers, an Infant Mortality Relief Program to review medical records and other data on infant deaths and a midwifery working group to study and make recommendations on advancing choices for community birth care.

ONLINE PRIVACY, DATA AND SAFETY PROTECTIONS (PA 23-56)

Makes various changes to laws on data privacy and related issues, including provisions on consumer health data, minors’ social media accounts and online services, online dating operators, and a task force on internet crimes against children.

RESOURCES FOR PERSONS WITH AN INTELLECTUAL
OR DEVELOPMENTAL DISABILITY (PA 23-137)

Among many supportive measures, creates a plan to establish a Transitional Life Skills College program to support certain people with IDD who are transitioning out of high school or to independent living.

WORKERS' COMPENSATION FOR POST-TRAUMATIC
STRESS INJURIES (PA 23-35)

Expands eligibility for workers’ compensation benefits for post-traumatic stress injuries to all employees covered by the workers’ compensation law.
List of New Laws Effective January 1, 2024
Your calls, emails, and testimony at public hearings during the legislative session had a direct influence on these new laws. Thank you for your input, and please continue sharing your views and making your voice heard during our legislative process.
 
Connecticut Automatic Admission Program

Connecticut is offering a wonderful new program that will make applying for higher education much easier – and less expensive – for graduating high school students. The Connecticut Automatic Admission Program allows students who meet certain criteria to be automatically admitted to several Connecticut colleges and universities by filling out a single application form, free of charge!

The following colleges and universities are participating in the program:

  • Central Connecticut State University in New Britain
  • Eastern Connecticut State University in Willimantic
  • Southern Connecticut State University in New Haven
  • Western Connecticut State University in Danbury
  • Mitchell College in New London
  • University of Bridgeport in Bridgeport
  • University of New Haven in New Haven
  • University of St. Joseph in West Hartford
  • Goodwin University in East Hartford
Don't delay: the deadline to apply for high school seniors who are graduating this spring is January 4, 2024.

Graduating seniors in the top 30% of their class, as identified by their individual high school counselors, are eligible.

Applying for college can be an intimidating, time-consuming, and expensive process. But with the Automatic Admission Program, applying for some of our great state schools is more accessible than ever – evening the playing field for all applicants, particularly first-generation, low-income, and minority students.
Learn More About the Program & How to Apply
 
Scam Alert
The Connecticut Department of Labor (CTDOL) is urging residents to be aware of a scam targeting job seekers. Criminals are soliciting banking and other information by calling residents and claiming to be an employer registered with CTHires, the state’s job bank.

The attempts to steal personal data through this scam include callers asking for Social Security, bank account, and credit card numbers as well as telling residents they must pay a fee to have their application reviewed for employment. The agency recommends that all unemployment filers, CTHires users, and job seekers stay vigilant about this and other scams targeting residents.

If you think you may be a victim of this or other scams, please visit the CTDOL fraud watch page.
 
Career Day
It was fun recently speaking to Manchester High School sophmores at Career Day for the Education and Public Service Academy (EPSA).

EPSA students networked and explored careers of interest with a Superior Court judge, lawyers, a DCF case manager, psychiatric nurses and even a state representative who also happens to be a lawyer.

Always happy to share my time with students along with business and community partners who do the same. 
 
CBIA Discussion
I recently joined State Representatives Jill Barry and Steve Weir along with CBIA’s public policy team for an open and insightful discussion with dozens of local business leaders in Glastonbury.

We had a great discussion as we prepare for session. Thanks to HABCO Industries, LLC for hosting and CBIA for the invite!
 
CHR Roundtable
State Senator Saud Anwar and I joined Community Health Resources (CHR) for a Behavioral Healthcare Roundtable on solutions to pressing issues impacting Connecticut children, families, and adults including the children’s mental health crisis, the opioid use epidemic, and housing instability.

Thanks to CHR for hosting and for the critically important work it does in our community.
 
Remembering Mary Ann Handley
Manchester's Mary Ann Handley passed away recently at age 87, the former state senator was a mentor and an inspiration to me and so many others. She will be missed. She had a remarkable life and career in public service. My deepest condolences to her family.
Photo courtesy of the Journal Inquirer
For more on Mary Ann's life as a "trailblazer," please click here for a story from the Journal Inquirer.
 
Manchester Legislative Town Hall
Please join me and the Manchester delegation on January 29, 2024 from 6-7:30 p.m. at the Lincoln Center (494 Main Street) for a Legislative Town Hall ahead of the 2024 session.

If you have any questions, please feel free to reach out at Awet.Tsegai@cga.ct.gov or call (860) 240-8790.