Fate of Hospital Tax is Key to a Pending State Budget Deal

Closed-door talks between Gov. Ned Lamont and Connecticut's hospitals may help decide the level of tax increases in the new state budget.

The Democratic governor and the hospitals have been at odds for months over his two-year $43.1 billion budget proposal. It scrapped a deal reached in 2017 to lower the tax on hospitals. Instead of facing an expected burden of $43 million a year beginning July 1, they now face the prospect of losing $270 million.

With the General Assembly set to adjourn on June 5, all eyes are on whether the two sides can reach a compromise and how that might change the projected revenue gap lawmakers must cover to balance Connecticut's two-year budget.

Both the hospital association and the governor's office will only say negotiations are continuing.

Copyright AP - Associated Press
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