Governor Malloy signs bipartisan budget, but vetoes hospital tax

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HARTFORD -- Governor  Dannel P. Malloy said he's signed a bipartisan state budget, but used his limited line-item veto power to scrap portions of the legislation related to a problematic tax on Connecticut's hospitals.

The Democrat announced his highly anticipated decision Tuesday on Twitter.

Malloy has said he believes the language concerning the hospital tax puts about $1 billion in federal funding at risk. The revenue is tied to the tax as part of a complicated reimbursement formula.

Democratic and Republican lawmakers passed the two-year, $41.3 billion bipartisan plan last week with enough support to override a veto, if that became necessary. The agreement had been crafted by legislative leaders, without Malloy in the room.

Malloy said he has other problems with the bill and is urging lawmakers to make fixes.

Read the Governor’s full signing statement here, and his letter to legislative leaders here.