House Democrats propose 10-percent hike in sales tax

HARTFORD — The General Assembly was on a high wire Thursday, with the new fiscal year looming, a sharp partisan divide, and an offer from Gov. Dannel P. Malloy that they should probably not have refused.

But House Democrats, depleted by vacations and vulnerable to a possible Republican budget proposal if the issue went to a floor debate, said they would let the new fiscal year start under a Malloy order that would sharply cut state expenses. By mid-afternoon, they were offering a new, two-year budget - to be voted on July 18 - that would raise the current 6.35-percent sales tax to 6.99 percent.

The Democratic plan would also give towns and cities local options for raising revenue by voting on 1-percent surcharges on food and beverages.

House Minority Leader Themis Klarides, R-Derby, called the tax hike a non-starter.

The possibility of a special session in time for the new fiscal year faded, when lawmakers were told that a special session would not occur on Thursday. The chances of a Friday session to vote on the governor’s so-called mini-budget, faded when the House Democrats announced their proposal.

While Senate Republicans and Democrats seemed amenable to accepting Malloy’s so-called mini-budget to maintain state services for up to three months, there was less agreement between the two parties in the House.

Senate Republican Leader Len Fasano, R-North Haven, left, and House Minority Leader Themis Klarides. Senate Republican Leader Len Fasano, R-North Haven, left, and House Minority Leader Themis Klarides. Photo: Jessica Hill / Associated Press Photo: Jessica Hill / Associated Press Image 1 of / 8 Caption Close House Democrats propose 10-percent hike in sales tax 1 / 8 Back to Gallery

House Democrats caucused at 11 a.m., but with a dozen or more members unavailable because of vacation plans, the narrow 79-72 majority was at much less than full strength, putting Speaker of the House Joe Aresimowicz in a position of weakness if House Minority Leader Themis Klarides musters a full contingent.

As of 10:30 Thursday morning, Aresimowicz had not signed a document - called an emergency certification - that could start a special session. Under the joint rules of the General Assembly, any legislation would have to sit for 12 hours before any debate.

Klarides, R-Derby, has scheduled a 1 p.m. caucus to review Malloy’s mini-budget, which would better maintain state services than a pending executive order that the governor has promised to issue if there is no legislative budget action by 12:01 a.m. Saturday, when the new fiscal year is scheduled.

“Minority Leader Klarides should not hold up a vote on a temporary budget solution that will allow us to maintain rental assistance for families and to restore partial funding for summer youth jobs programs,” Malloy said in a statement Thursday morning.

Senate Republicans and Democrats scheduled closed-door caucuses for around noon, while Aresimowicz’s office announced that he and House Majority Leader Matt Ritter would speak to reporters at about 1:30 p.m.

kdixon@ctpost.com; Twitter: @KenDixonCT