Hospital Tax Poses Huge Challenge for First Lamont Budget

    In his article, Keith Phaneuf, discusses the challenges that the Governor of Connecticut is facing with the state’s hospitals. He begins by explaining the problem Governor Lamont is attempting to fix. Lamont must strike a balance between an industry that insists it was mislead, overtaxed, and abused by his predecessor (hospitals) and economic stability. In earlier legislative sessions hospitals in Connecticut were promised tax relief this year, but the legislature cannot deliver on this promise because the state’s coffers stand to lose more than $400 million if adjustments aren’t made. To make matters worse, earlier this month the Connecticut Hospital Association launched a new advertising campaign reminding the general public and more importantly, legislators that the industry employs an estimated 103,000 people with an annual, collective payroll of $7.6 billion. The main issue is a tax which began as a tool to draw more federal dollars into Connecticut, but became a huge source of friction between the industry and the previous Gov. Dannel Malloy. After inheriting a $3.7 billion deficit, Malloy proposed the tax after taking office in January 2011. The tax was to be in name only began eroding almost immediately. To learn more about the problem Gov. Lamont is facing, click here.

 

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