Finance, Revenue and Bonding committee advances bonding, energy and revenue bills; capital-gains amendment passes

The Finance, Revenue and Bonding Committee met May 20 and advanced a package of high-profile measures to the legislative floor, including the joint favorably recommended bond package, a broad energy bill and a two‑year revenue plan that was amended with a temporary capital‑gains surcharge.

The committee’s bond subcommittee chairs described a bipartisan process that included hearings with more than 30 state agencies and produced a bond package that the subcommittee said targets public safety, aging‑in‑place housing improvements, brownfield remediation, increased town aid road funding, special‑education capital needs and multifamily retrofits in environmental‑justice communities. Representative Napoli, co‑chair of the bonding subcommittee, and Senator Miller, the senate co‑chair, presented the bill and answered member questions.

Lawmakers also debated a comprehensive energy and affordability bill (Senate Bill 1560) that supporters said would reduce household electric bills and revise procurement and bonding authority for some energy costs. Several members urged referral to the Energy and Technology Committee for detailed technical work and analysis; Representative Winter and others voiced concerns about impacts on the solar industry and the costs of bonding programmatic expenses.

A wide-ranging revenue and tax proposal (Senate Bill 1246) drew the longest debate. Speakers from both parties described competing priorities: preparing for possible cuts in federal funds and Medicaid, protecting the state’s fiscal guardrails and avoiding long‑term increases in Connecticut’s debt burden. Representative Farrar and others highlighted a permanent refundable child tax credit included in the package; opponents warned the bill increases volatility and diminishes pension‑debt paydown.

During debate on the revenue bill the committee voted on an amendment (Letter A) that would impose, for tax years 2025–2029, a 1.75% surcharge on capital gains for high‑income filers with a one‑time exclusion for the capital gain from the sale of a primary residence or an ownership interest in a business. The amendment’s proponent described projected annual receipts of about $284 million before exemptions; opponents raised implementation questions and cautioned about taxpayer migration and administrative complexity. The amendment passed on a roll call (27 yays, 21 nays, 3 absent).

Several other bills were placed on the consent calendar or advanced without extended debate. The committee held roll call votes on multiple items across the agenda and announced that votes would remain open for 30 minutes after adjournment to allow members to register late entries.

Why it matters: The bond package would shape capital spending priorities for municipalities, schools and public health projects across the state; the energy bill seeks to address high electricity costs cited repeatedly by members; and the revenue package, as amended, would change state tax policy in the near term while establishing a new supplemental reserve account intended to respond to potential federal funding shortfalls. Each measure now moves toward additional committee review or floor action, where further amendments and final outcomes will be decided.

What’s next: The energy bill proponents said they expect referral to the Energy and Technology Committee for technical review; the revenue package and bond measures will proceed to the floor calendar. Members noted next steps will include consensus revenue numbers and ongoing negotiations with the governor’s office and legislative leaders.