NEON, Inc.
98 South Main Street
Norwalk, CT 06854
Phone: 203.899.2420
Fax: 203.899.2430
Email: admin@neon-norwalk.org
Norwalk Economic Opportunity Now, Inc.
Making The Case For Change...
Engaging The Community To End Poverty
Fedele vows to fight poverty, but still opposes
earned income credit

By Brian Lockhart
Staff Writer

The Advocate
Tuesday, January 29, 2008

NORWALK - Lt. Gov. Michael Fedele yesterday told supporters of Norwalk
Economic Opportunity Now that Gov. M. Jodi Rell's administration is
committed to assisting the anti-poverty agency.

"We all have a role in helping," Fedele told a crowd of about 45 at NEON's
legislative and business breakfast, mentioning Rell's recent investments in
education and health care. "Governor Rell and I take that responsibility very
seriously."

But in a later interview, Fedele said the Republican governor continues to
oppose establishing an earned income tax credit for the working poor in
Connecticut.

"It's my understanding the governor does not" support the proposal, Fedele
said yesterday. "I'm not aware of anything that says that's going to change in
the near future."

Democratic lawmakers have scheduled a Thursday news conference in
Hartford to remind residents to sign up for the federal program and to renew
their campaign to establish a state tax credit during the 2008 legislative
session.

The session that begins Feb. 6 will be an opportunity for the General
Assembly and governor to adjust the two-year state budget approved during
the 2007 session.

Rell spokesman Christopher Cooper also confirmed the governor will not
support an earned income tax, noting it could cost the state "tens of millions."
Last year's Democratic proposal was calculated at costing about $60 million.

"She will not support expensive new programs in this session," Cooper said.
"It's a 'budget adjustment,' after all."

Others who attended the NEON breakfast hope Rell will reconsider.

"We completely and fully support a state earned income tax," Joseph Mann,
NEON director, said afterward. "It's important to help more people out of
poverty."

Mann said the earned income tax credit has been favored by the General
Assembly's Democratic majority for years but is cast aside during budget
negotiations.

The state tax credit would piggyback on the federal program, allowing
residents to receive a percentage of the federal credit off their state taxes.
Democratic legislators, who seek a 20 percent state credit for residents
earning about $38,000 or less, calculate that would provide a $940 credit to a
family of two children earning $12,000 to $15,000.

"It's a conversation we need to have again this year," said state Rep.
Christopher Perone, D-Norwalk, a co-chairman of the legislature's Finance,
Revenue and Bonding Committee.

Perone attended yesterday's NEON breakfast with fellow Norwalk Democrats,
state Rep. Bruce Morris and state Sen. Bob Duff.

"I feel the kind of stimulus (an earned income tax credit) would provide to
inner-city communities . . . would be significant," Perone said. "I'm looking at
the governor's office, and I'm hoping she reconsiders."

Perone, who plans to attend Thursday's press conference, said some
Republicans support it as well.

Senate Minority Leader John McKinney, R-Fairfield, said in an interview
yesterday that he will join his Democratic colleagues Thursday in calling for a
state earned income tax credit.

But McKinney said he would be more comfortable with a 10 percent credit,
perhaps phased in over two years.

"We haven't really understood it well in Connecticut," McKinney said. "I like to
tell my colleagues it was Ronald Reagan who came out and really brought
the federal earned income tax credit to the level it is today. It's economic
stimulus. It's giving people some of their tax dollars back to reinvest. And
we're not telling them what they can do with the money, which are all pretty
Republican free-market philosophies."

Fedele, in his address at NEON, provided some hope for tenants of public
housing and for nonprofit social service agencies.

Roodner Court resident and NEON board member Daisy Franklin asked the
lieutenant governor to help restore $3.9 million to the state budget to cover
local property taxes for housing authorities and nonprofit housing
developments.

The money for years has been paid to municipalities, including Stamford,
Norwalk and Greenwich, but it was not included in the two-year budget.

Since July, public housing officials and state residents have been urging
lawmakers to act before rents are increased to make up for the lost funds.

"We're very much aware of the concern and problem," Fedele told Franklin.
"We're looking at where we can get additional dollars."

Copyright © 2008, Southern Connecticut Newspapers, Inc.