State budget chief says there's no formal proposal for a grocery tax
By Christopher Keating
| HARTFORD
State budget director Melissa McCaw speaks with Rep. Edwin Vargas of Hartford and Deputy Speaker Pro Tem Robert Godfrey of Danbury after her confirmation hearing to be Secretary of the Office of Policy and Management. (Christopher Keating)
Gov. Ned Lamont's budget chief said Tuesday there is no formal proposal to impose the state sales tax on groceries — a highly controversial idea that has been strongly opposed by Republican and Democratic legislators.
But Melissa McCaw, who has been working as the acting chief for about a month, also said no final decisions have been made on Lamont's budget, which will be unveiled publicly on Feb. 20.
"The administration has not put forth a budget, so there is no proposed tax on food that we've formalized," McCaw told legislators during her confirmation hearing Tuesday. "Every idea is currently being considered. We have not locked in the final decision. His package will reflect his values."
Lamont had asked his budget team to present him with a series of scenarios of possible tax increases, and those included a potential tax on groceries. Currently, groceries, prescription medicines and a variety of other items are exempt from the state's 6.35 percent sales tax. McCaw said Lamont has approached budget deliberations with the view that "no idea is a bad idea."
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When asked how a 2 percent tax on groceries would impact some citizens, McCaw answered, "It would be a challenge.''
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"I would tend to agree with that," responded Rep. Jason Perillo of Shelton, the top House Republican on the executive and legislative nominations committee.
Later in the hearing that lasted about 90 minutes, McCaw told the committee she came from "humble beginnings'' and would remember that background when it came to crafting the state budget.
Deputy House Speaker Pro Tem Robert Godfrey of Danbury, one of the longest-serving legislators, said numerous Connecticut families are living in poverty, and he is not interested in approving policies that would "continue to make Connecticut safe for rich people.''
"I will not vote to increase the sales tax and certainly not put it on groceries," he told McCaw.
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Godfrey, a Democrat, then asked McCaw about her department's focus and whether the state would be helping the middle class under the Lamont administration. McCaw answered, "I will always have the lens of the mom who is struggling to buy food."
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Raised in Waterbury, McCaw was the only child of a single mother who is of Jamaican ancestry and emigrated to the United States from England. Her mother, a a certified nursing assistant, earned $9 or $10 an hour through most of McCaw's youth. McCaw has said that her mother told her she would go to college so she could have a better life. McCaw later graduated from Wesleyan.
McCaw, whose formal title is secretary-designate of the Office of Policy and Management, was approved unanimously Tuesday by House members of the committee. Her nomination now goes to the state House of Representatives. If confirmed by the House, McCaw would be the first African-American woman to lead the agency and be the state's top budget official.
Regarding proposals for increasing the minimum wage, McCaw said, "I think it's important that we never lose sight of the struggle of lower-income families in the state of Connecticut. Certainly, if we are able to influence some of the proposals surrounding minimum wage, I think we're saying that Connecticut is a place where we want you to be able to have a decent life. That should be part of our marketing message as well.''
Despite being asked a series of questions Tuesday by legislators, McCaw declined to provide details of Lamont's proposed budget, including spending cuts. During the campaign, Lamont spoke in favor of enacting electronic highway tolls only on tractor-trailers. That system is currently in place in Rhode Island, but the truckers have filed a lawsuit against the practice.
When Perillo asked if the idea of tolls on all vehicles — not just trucks — is currently under consideration, McCaw responded, "A decision has not been made on tolls.''
As the former budget chief in the city of Hartford, McCaw was asked about the controversial bailout of Hartford that was included in the state budget and roundly criticized by Republicans. Some legislators said they were not aware of the precise details of the bailout, which requires the state to pick up about $550 million of Hartford's debt payments over the next two decades or so. McCaw was asked whether she believes cash-strapped cities receive their fair share of state funding.
"The truth of the matter, however, is the state's resources are rather limited," she said. "The question of whether or not it's an adequate level of funding is also a question about what is our ability to pay. That is a discussion we will be having on Feb. 20 until early June. I believe that there are some that are struggling, and then there might be other municipalities that have a greater ability to withstand a reduction in municipal aid."
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