MERIDEN, Conn. (2/5/14)--The Credit Union League of Connecticut and state credit unions are requesting a sales-tax exemption for state-chartered credit unions, given there is a projected general fund surplus of $117.1 million in fiscal year 2014, as this year's state legislative session convened today.
The surplus represents about 7% of total estimated expenditures. In addition, the Office of Fiscal Analysis projects a surplus of $8.4 million for 2015.
"We haven't asked since 2008 because the state was in the red, but now that we are in the black we figure it's time again," said Kelly Fuhlbrigge, league vice president of government relations told News Now. "It's in the best interest of our members and credit union members throughout the state."
Because of their cooperative ownership structure, Connecticut credit unions could return any savings realized from the sales tax exemption into better rates on savings products and loans to their members.
The league is also maintaining a defensive posture on foreclosure legislation during the session. Last year the legislature made changes to the judicial branch's foreclosure mediation program, including extending the program's operation and establishing expedited foreclosure procedures for vacant and abandoned properties.
Because the high foreclosure rate persists in Connecticut, the league expects that the legislature may consider additional changes to the program and foreclosure process, including changes related to pre-foreclosure sales and additional procedures to help owners through the mediation process. "Lengthening the process for us isn't anything more than a regulatory burden," Fuhlbrigge said.