Hospital tax still at issue in newly passed state budget
HARTFORD, Conn. (AP) — Legislative staff and attorneys are reviewing concerns raised by Democratic Gov. Dannel P. Malloy about whether the bipartisan state budget that passed the General Assembly on Thursday puts hundreds of millions of dollars in federal funding at risk.
The governor’s communications director says Malloy’s staff met Friday with the group to discuss why the administration believes the bill fails to create a federally compliant health care tax.
Under the complicated proposal, the state receives federal reimbursement tied to the tax paid by hospitals. Ben Barnes, Malloy’s budget director, says if the federal government invalidates the tax, Connecticut could face a $1 billion shortfall.
Legislative leaders have said they’ll fix the problem, if it becomes necessary.
Malloy has until Wednesday to sign the two-year, $41.3 billion budget into law.