E-CAPS Number 11 

March 5, 2002

Greetings,

This issue of E-CAPS includes: 1. STATE BUDGET UPDATES 2. UPCOMING PUBLIC HEARINGS 3. OTHER UPCOMING EVENTS 4. RESOURCES FOR YOU AND YOUR CUSTOMERS

1. STATE BUDGET UPDATES

With CT facing its first budget deficits in nearly a decade, the One CT Campaign has proposed an alternative plan to balancing the state budget that unlike the Governor's does not make significant cuts in health and education funding. Based on a CT Voices report (see below), the plan proposes the following: **Maximize federal funds coming to CT: $100 million **Reverse transfers from the General Fund/Special Transportation Fund: $75 million **Delay changes or freezing reductions in the Inheritance, Gift and Estate Taxes: $48 million **Cut spending on the tax side of the budget with a focus on sunsetting the tax expenditures deemed to be expedient: $442 million **Impose a temporary 0.5% surcharge on CT taxpayers with an adjusted gross income of over $1 million: $122 million

Together, these budget choices would yield about $887 million in new FY 03 revenue. One CT also recommends the creation of a state Earned Income Tax Credit, set at 20% of the federal EITC at a cost of $42 million to spur CT's economic recovery. The state EITC and FY 03 spending would leave about $95 million in FY 03 to begin to replenish CT*s Rainy Day Fund (since the Fund will be used, in part, to balance the FY 02 budget). You can view the entire CVC report "Enhancing State Investments Through Smart Budget Choices" and "An Overlooked Form of Spending: Tax Expenditures," on our web site at www.cafca.org.

CT LOSING GROUND IN TAX TREATMENT OF WORKING POOR A report released by the Center on Budget and Policy Priorities notes that among the 42 states with an income tax, CT holds the distinction of being only one of two states that failed to reduce the tax burden on low-income families during the prosperous 1990s. The other state is Alabama.

CT's tax threshold for a family of four (the income at which families start paying state income tax) was $24,100 in 1991, and remains at that level today. While CT's tax threshold in 1991 was 73% above the federal poverty line, it now is only 33% above the poverty line (the poverty line is adjusted for inflation). CT has lost ground to other states by not adopting a refundable state earned income tax credit (as our neighboring states have done) and also by not expanding its property tax credit to renters (and making it refundable). For a full copy of the CBPP report see: http://www.cbpp.org/2-26-02sfp.pdf. 

2. UPCOMING PUBLIC HEARINGS

HUMAN SERVICES COMMITTEE HEARING Thursday, March 7, 2002, 11:00AM at the LOB room 2E.

H.B. No. 5558 (RAISED) AN ACT CONCERNING A COST-OF-LIVING ADJUSTMENT FOR CHILD CARE PROFESSIONALS. http://www.cga.state.ct.us/2002/TOB/h/pdf/2002HB-05558-R00-HB.pdf  Establish a cost-of-living adjustment (COLA) equivalent to the COLA for state employees, for child care professionals who are contracted by the Dept. of Social Services to provide child care services.

HB 5640 WORK ACTIVITIES IN THE JOBS FIRST PROGRAM http://www.cga.state.ct.us/2002/TOB/h/pdf/2002HB-05640-R00-HB.pdf  To promote and enhance educational activities within the Jobs First Program, and to extend temporary family assistance benefits when the state unemployment rate is excessively high.

SB 434 AN ACT CONCERNING SAFETY NET SERVICES http://www.cga.state.ct.us/2002/tob/s/2002SB-00434-R00-SB.htm  To increase the number of families who will qualify for existing safety net services.

FINANCE REVENUE & BONDING COMMITTEE HEARING Thursday, March 7, 2002, 10:00AM at the LOB room 2C.

The Finance, Revenue & Bonding Committee will be holding a Public Hearing on Thursday, March 7, 2002 from 10:00 A.M. until 6:00 P.M. in Room 2C of the Legislative Office Building to hear testimony on Governor's Bills, Attorney General's Bills, Treasurer's Bills, Finance Bills on Sales Tax, Property Tax, Corporation Tax, and Income Tax.

Note the following bill of interest that will be heard, (Raised) SB 429 An Act Concerning The Neighborhood Assistance Act. Please let us know if you plan to submit testimony or testify so that we can sign you up to speak. OPM Secretary Marc Ryan will be testifying from 10:00 a.m. until 12:00 noon

AN ACT CONCERNING THE NEIGHBORHOOD ASSISTANCE ACT. http://www.cga.state.ct.us/2002/TOB/s/pdf/2002SB-00429-R00-SB.pdf  This legislation would permit "S" corporations who have been a part of the Neighborhood Assistance Act to remain in the program although S corporations are no longer taxed.

SB 498 AN ACT CREATING AN EARNED INCOME CREDIT AGAINST THE PERSONAL INCOME TAX http://www.cga.state.ct.us/2002/tob/s/2002SB-00498-R00-SB.htm

3. OTHER UPCOMING EVENTS

PRIVATE PROVIDER DAY AT THE CAPITOL Will be held during the week of March 25th, 2002 (date to be announced A.S.A.P.) Call CT Asso. of Non-Profits for more information at (860) 525-5080.

MENTAL HEALTH ADVOCACY MARCH March 19th 2002 Starting at 10:30 am SAFEGUARD MENTAL HEALTH FUNDING IN THE STATE OF CONNECTICUT The Keep the Promise Coalition is sponsoring an Advocacy March from the Department of Mental Health and Addiction Services office on Capitol Ave in Hartford to the Legislative Office Building. A press conference will immediately follow the Advocacy March featuring Consumers and their Families. FREE BOX LUNCHES WILL BE RESERVED BUT YOU NEED TO CONTACT KATIE MARTIN, WITH THE NUMBER OF LUNCHES NECESSARY BY MARCH 11, 2002. CALL KEEP THE PROMISE COALITION TOLL FREE AT 1-877- 402-2299.

4. RESOURCES FOR YOU AND YOUR CUSTOMERS

FREE DAILY E-MAIL SERVICE OF FEDERAL FUNDING OPPORTUNITIES Sign-up to receive daily e-mail versions of the Table of Contents Pages of the Federal Register which lists all federal funding announcements. To sign-up for this free service go to http://listserv.access.gpo.gov, select "Online Mailing List Archives," choose FEDREGTOC-L and then follow on-screen instructions.

HHS CENTER FOR FAITH-BASED & COMMUNITY INITIATIVES EXPANDS ONLINE RESOURCES HHS announced the launch of a redesigned and expanded Web site for the department's Center for Faith-Based and Community Initiatives. The site, at www.hhs.gov/faith, pulls together resources from across the department to begin to provide one-stop-shopping for faith-based and community organizations looking for information about HHS programs and opportunities.

USA FREEDOM CORPS Web site, and information on President Bush's proposed Freedom Corps, which will strengthen and incorporate AmeriCorps, SeniorCorps, and Peace Corps. http://www.freedomcorps.gov/ or  http://www.whitehouse.gov/news/releases/2002/01/20020130-1.html

HHS 2002 POVERTY GUIDELINES ANNOUNCED - Used in determining financial eligibility for certain federal programs. For a family of three in the 48 contiguous states and D.C., the 2002 HHS Poverty Guideline is $15,020 (add $3,080 for each additional person). http://aspe.hhs.gov/poverty/02poverty.htm

2002 EARNED INCOME TAX CREDIT OUTREACH KIT - Now available in a variety of languages from Center on Budget and Policy Priorities. http://www.cbpp.org/eic2002/index.html

NEW POLL ON WELFARE REFORM - Most Americans are ambivalent about the success of welfare reform and concerned about its effects on children, says a poll released by The David and Lucile Packard Foundation in conjunction with The Future of Children journal issue on children and welfare reform. Three quarters would like to see a decrease in the number of families living in poverty and feel that it is more important to help lift people out of poverty, especially given the current economic climate, than to focus on decreasing welfare spending. http://www.futureofchildren.org/

URGE CONGRESS MEMBERS TO SUPPORT REP MINK'S TANF REAUTHORIZATION ACT - The total number of co-sponsors is now 68, reports The Welfare Made a Difference National Campaign. http://www.webclipper.org/alerts3396/alerts_show.htm?doc_id=102972

FAMILY SUPPORT AMERICA NATIONAL DATABASE The National Family Support Mapping Project provides a fully searchable database of family support programs across the United States. Data is searchable by state, service type, and keyword. Online at www.familysupportamerica.org .

David MacDonald CAFCA Communications Director TEL: 560-5847 FAX: 560-5848

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The CT Assoc. For Community Action (CAFCA) is the state association of CT's 12 community 
action agencies. For more information call us or visit our website at www.cafca.org.  To subscribe 
to our printed newsletter, or to subscribe or unsubscribe to E-CAPS please email me at davidm@crtct.org. Past issues of our newsletter and E-CAPS are archived on our website. ===========================================================

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