by Christine Stuart CTNewsJunkie
Gov. Ned Lamont used his state-of-the-state address to highlight Connecticut’s accomplishments and the investments, but not everyone agreed with exactly how he got there.
The speech, which was briefly interrupted by protestors, focused on some of the investments the two-year budget made, including funds dedicated to housing and mental health services.
“Today we have more people working, more people starting businesses, more people joining labor unions with better pay and better benefits, more of our graduates staying in Connecticut, and more out-of-staters wanting to move here,” Lamont said. “One warning sign: we have too many people who cannot find a place to live – it is not available, or it is not affordable. Our biennial budget doubles our investment in housing – workforce housing, affordable housing, supportive housing, elder housing, and downtown apartments.”
The budget invests $430 million per year in housing through bond authorizations. That’s not different than what is already in the budget, but it’s likely the legislature will tackle some of the more difficult issues like zoning.
“Are we going to have a gigantic fight about zoning – probably not,” House Majority Leader Jason Rojas said. “Are we going to put more incentives in place to encourage towns to change their zoning? I could see that happening.”
However, there were some changes that didn’t go far enough for some Democratic lawmakers.
The House chamber is packed during the governor’s State of the State address on Wednesday, Feb. 7, 2024, the first day of this year’s legislative session. Credit: Christine Stuart / CTNewsJunkie
The Lamont administration’s proposed adjustments to Connecticut’s $26 billion budget amount to less than $90 million, reflecting a cautious approach to financial management despite a projected surplus.
“We are $300 to $400 million apart from the governor’s budget. Is that insurmountable, no? Can you do it under the existing system we have, yes,” House Speaker Matt Ritter said.
There are two extremes within the legislature at the moment as it pertains to the fiscal guardrails. Lamont’s budget adjustment is just $1 million under the spending cap and he has vowed to maintain those fiscal constraints. But some Democratic lawmakers believe they could tweak them slightly to get a little bit more spending approved.
“Having a budget reserve fund is the most liberal thing you can do,” Ritter said. “Because otherwise you’re just reducing spending and raising taxes on people who can’t afford it. So there’s got to be a balance at some point,” Ritter said.
Republican lawmakers support the strict interpretation of fiscal guardrails.
“I think the governor presented a really realistic outlook for Connecticut, and he’s trying to present a tempered budget recognizing that we have a structure in place, let’s not undo it. I do applaud him for that,” House Republican Leader Vincent Candelora said. “I think it’s going to be difficult going forward with the spending pressures that we have on our budget.”
House Majority Leader Jason Rojas and House Speaker Matt Ritter weigh in on the budget. (Christine Stuart / CTNewsJunkie photo) Credit: Christine Stuart / CTNewsJunkie
Lamont’s package maintains flat funding for public colleges and universities, a move criticized by higher education officials who warned of potential deficits and program cuts.
While fulfilling a pledge to allocate over $40 million extra for early childhood development, Lamont’s proposal involves scaling back funds earmarked for magnet schools and other K-12 education programs – a non-starter for many Democratic lawmakers.
To pull money from education that hasn’t even been funded yet is “something our caucus is going to want to deal with,” Ritter said.
Rep. Jeff Currey, D-East Hartford, who co-chairs the Education Committee, said they negotiated the $150 million for K-12 education last year and to try and reallocate the money before it’s even spent goes back on that agreement.
He said that money isn’t for direct support staff or teachers but it’s saving the local school districts from having to spend more money. Currey pointed out that it was the third line of his address Wednesday.
Referring to the budget that’s already passed, Lamont said “That budget makes our state’s largest ever commitment to childcare, K-12 education, our universities, workforce training, and not-for-profits.”
The proposal was widely panned by municipal and education officials.
“Reducing state aid for education will, among other things, exacerbate inequities in education funding, quality of education, and student performance across school districts in Connecticut. CCM calls on the governor to think about Connecticut’s future through the lens of our children, and preserve state aid to education,” Connecticut Conference of Municipalities Executive Director and CEO Joe DeLong said.
Lamont’s budget adjustments also rely on repurposing $56 million in unspent federal COVID-relief grants to provide fiscal flexibility. However, the reallocation of these funds is expected to face scrutiny from legislators, particularly regarding the utilization of federal grants by state agencies.
“We are proposing new ARPA allocations,” Beckham said. Including, a science of reading master class, a right to counsel program for folks facing eviction, and $10.9 million for the legislature to spend as they see fit.
Another significant aspect of the budget adjustments involves addressing Connecticut’s transportation debt. The plan reallocates $500 million from the Special Transportation Fund reserve to reduce outstanding transportation bonding debt, aiming to tackle the state’s substantial financial obligations.
It will result in savings of $22.1 million the next year, but Beckham said the fund would be in the red if they proposed getting rid of the highway user fee.
He said cars are getting more fuel efficient and revenue sources are still lagging.
In higher education, funding levels for institutions like the University of Connecticut and the Board of Regents for Higher Education remain unchanged. However, the decline in temporary funds from surpluses and federal grants may lead to deficits, prompting cost-cutting measures such as staff buyouts and tuition increases.
The $2.5 billion in new bond authorizations, includes about $300 million for colleges and universities.