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Copyright 1999 The New York Times Company  
The New York Times

June 11, 1999, Friday, Late Edition - Final

SECTION: Section B; Page 5; Column 1; Metropolitan Desk 

LENGTH: 1134 words

HEADLINE: Connecticut Passes Sales-Tax Rebate as Session Ends

BYLINE:  By MIKE ALLEN 

DATELINE: HARTFORD, June 10

BODY:
Reveling in flush times, the Connecticut Legislature adjourned today after passing a $50 sales tax rebate for every adult taxpayer in the state, with checks scheduled to begin arriving in October.

The rebate, the state's second in two years, was symbolic of the bipartisan bonhomie that marked the five-month session, where the biggest issue was how to spend a record $551.9 million budget surplus produced by the bubbling economy. Democrats, who control both chambers of the Legislature, offered little resistance to the rebate plan, which had been proposed by Gov. John G. Rowland, a Republican. And Republicans went along with the Democrats' tax-relief idea, voting to raise an income-tax credit for those who pay property taxes. The credit, which will go to $500 from $350 in the next two years, will wipe out the income-tax bills of 350,000 Connecticut residents, according to legislative officials.

Last year, the rebate was sent only to people who paid state income tax. But this year, it was expanded to any resident who files a state tax return, including senior citizens and working poor people whose income is so low they owe no tax. The rebate is expected to go to 2.1 million residents, up from 956,000 last year.

Meeting here in the nation's insurance capital, lawmakers also passed what they call the "pill bill," which requires health insurers to cover contraceptives for women. Legislators imposed new mandates on managed-care companies, including a speedier appeals process for patients and a requirement that the companies cover Lyme disease, a tick-borne illness named for an area of the Connecticut shoreline.

"It's easier to govern when times are good," said Senator George C. Jepsen, a Democrat from Stamford who is the majority leader. "Just look at what we were able to accomplish: providing the citizens of this state with meaningful tax relief, paying down debt, increasing funding for education, investing in our cities and reforming the way managed-care companies in our state do business."

Governor Rowland appeared shortly after midnight in the House of Representatives' chamber, which was studded with balloon bouquets during the raucous final hours. He praised legislators for continuing what he called Connecticut's fiscal winning streak. "You've shown the rest of the country what can be accomplished when a legislature puts partisanship aside," he said.

Beer kegs were wheeled into the Capitol and lawmakers changed into jeans and partied past sunrise, with legislative leaders joining an annual tradition of trying to toss Hula-Hoops over a statue of Nathan Hale from the fourth floor of an atrium.

The self-congratulation was a bit premature. Like the student who walks through the diploma line at graduation but then must go to summer school, the legislators were dismayed to learn they must return Monday for a special session that was forced because they failed to act on three budget bills by midnight. The clock passed the constitutional deadline for acting on this session's bills, so new measures will be drafted for Monday.

Leaders said the problem was one of scheduling and not substance, and so expect little wrangling during the special session. However, one of the issues still in limbo is the state's schedule for spending its share of money from the national settlement with tobacco companies. Members of an antitobacco group said they hoped to win a commitment for added immediate financing for smoking cessation and education programs.

Governor Rowland said he was considering vetoing only one of the more than 400 bills that were sent to him -- and said he was leaning toward signing that one. The proposed law would allow the police to get warrants to seize the guns of people who are determined to be a danger to themselves or others. Supporters said the measure would allow the authorities to act to prevent tragedies that can be foreseen, but opponents called it the "turn-in-your-neighbor bill" and said it could be abused through false accusations in neighborhood or custody disputes.

The lawmakers passed a two-year budget totaling $23.78 billion, which calls for an increase of 4.8 percent next year and 4.7 percent the following year.

Other major measures included new protection for witnesses in criminal cases. The program is to be named for Leroy Brown Jr., an 8-year-old Bridgeport boy who was killed last year before he could testify in a murder case. Also, to discourage the police from stopping motorists based on their race, the legislators voted to require officers to record the race, ethnicity, gender and age of every driver they stop.

The lawmakers turned back an effort to reduce the standard for drunken driving from a blood-alcohol level of 0.10 percent to 0.08 percent but increased penalties for repeat offenders. And legislators voted against a measure that would have banned banks from charging noncustomers a fee for using automated-teller machines.

Governor Rowland said his biggest disappointment was the Legislature's rejection of his plan to abolish the high sheriffs, who are the last vestige of county government in the state. Governor Rowland contends the sheriff's offices are rife with corruption, and wanted to transfer to the state their functions of transporting prisoners, securing courts and serving legal papers. He said he would try again next year.

This year's legislature marked the ascension of the New York City suburbs to a level of political clout to match their status as Connecticut's economic engine. Representative Moira K. Lyons, a Democrat from Stamford, became Speaker of the House and Senator Jepsen continued as majority leader, the No. 2 official "upstairs," as the Senate is known at the Capitol.

The elevation of Representative Lyons, 56, ended the long era when legislative leaders' deals were cut in the men's room. She exercised her clout by demanding a bigger role for the Legislature in overseeing spending for a football stadium for the University of Connecticut that is to replace the failed plan to bring the New England Patriots to Hartford.

Her staff said she read every bill her chamber took up, and aides to Governor Rowland and Senate leaders complained bitterly about what they asserted was her overly deliberate style. In an interview today, she said she was proud of her role as a stickler willing to take on power centers in both parties.

"Maybe they're just not used to having someone say, 'Well, I don't agree with you,' " she said. "Because I disagree with someone does not mean they are right and I am wrong."

The Patriots deal, which collapsed in late April, was such a humiliation that legislators could no longer bear even to look at the word "stadium," so the UConn financing is officially for a "sportsplex" near the Capitol.
 http://www.nytimes.com

GRAPHIC: Photo: Congratulating Gov. John G. Rowland before he addressed the Connecticut Legislature yesterday were Representative Moira K. Lyons, Speaker of the House, and Kevin Sullivan, Senate President. (Associated Press)
 
Chart: "AT A GLANCE: Spending The Surplus"
 
About one-sixth of Connecticut's 1999 budget surplus of $551.9 million will be used for a sales-tax rebate.
 
Sales-tax rebate for residents
$96.2 million
 
Set aside to pay salaries when there are 53 weeks in a year
$90.0 million
 
Medicaid payments
$78.0 million
 
Health insurance for state employees
$60.0 million
 
School construction interests
$55.0 million
 
$172.7 million
Others
 
(Source: Connecticut General Assembly)

LOAD-DATE: June 11, 1999




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