The legislature’s Finance, Revenue and Bonding Committee approved bills Tuesday that would reduce Connecticut transportation construction debt and would gradually phase out property taxes on motor vehicles — in the 2030s. The Democratic-controlled finance panel, which must complete action on all its bills by the close of business Thursday, is expected to take up several revenue proposals Wednesday, including a new measure to create a state income tax credit for low- and middle-income families with children. Those revenue bills, along with a spending plan adopted Tuesday by the Appropriations Committee, will form a blueprint to guide final negotiations with legislative leaders and Lamont on a new state budget for the next two fiscal years. One bill, enacted with bipartisan support Tuesday, would cap reserves in the budget’s Special Transportation Fund at 18% of the STF. Any other unspent dollars would be used to pay down transportation debt. The STF, which gets most of its funding from sales and fuel tax receipts, finished with surpluses approaching or surpassing 10% in each of the past three fiscal years, and the Lamont administration projects a $159 million or 7% surplus this fiscal year.
