‘Connecticut is in a very strong position’

Lamont to fill in blanks on budget proposals

In recent weeks, during warmup announcements for the twoyear, approximately $24.5-plus billion budget that he will propose to the General Assembly on Wednesday, Gov. Ned Lamont offered several major changes to Connecticut’s gun safety laws. This week he proposed the largest cut in income taxes since the adoption of the tax in 1991.

While governors traditionally announce major initiatives in the run-up to their budget addresses, there are always proposals that are held back until they step up to the dais in a packed House chamber for the joint session of the legislature that officially kicks off the budget season. And in a period of multi-billion-dollar state surpluses, there is still plenty left for the second-term governor to propose.

The governor is likely to make long-term “wealth creation” a major subject of his spending priorities proposal, according to Capitol sources briefed on the outline of the proposals. Lamont on Tuesday briefed legislative leaders on the budget proposal.

Expect housing, transportation, child care and education initiatives to fill out Lamont’s legislative proposals, including assistance for first-time home buyers and an expansion of affordable housing at a time when the state is trying to fill 100,000 job openings. More child care opportunities are likely to be offered in attempt to free more parents to get back into the workforce as the COVID-19 pandemic subsides nearly three years after hitting the state, where it has been linked to the deaths of nearly 12,000 people.

He is also expected to further explain a plan to cancel medical debt for some families, where a $20 million investment in COVID relief funding could leverage the elimination of $2 billion in debt that is one of the leading causes of bankruptcy in Connecticut, particularly among communities of color.

Several of Lamont’s ideas should overlap with majority Democrats in the General Assembly, but it’s unlikely that they all will be embraced by lawmakers as the race for the June 7 adjournment begins. Lamont also wants to increase the state’s Earned Income Tax Credit, which along with his proposed reduction in the income tax rates, could exempt those making less than $50,000 from paying taxes.

“Connecticut is in a very strong position right now where we can look at tax relief, look at long-term investments for our future in education, transportation and health care and in helping out people with lower incomes as well as seniors and children,” said Senate Majority Leader Bob Duff, DNorwalk. He said that the next step is for the Finance Committee and the Appropriations Committee to dive into the proposal and put out their own proposal. Then negotiations will begin for a final package for debate and voting.

House Minority Leader Vincent Candelora, R-North Branford, said he participated in a 90minute briefing on Tuesday. “I think what the governor is recognizing is that with the federal ARPA money expiring, we need to land the airplane gently,” Candelora said in a late afternoon interview. “Tough decisions this biennium and the next have less to do with cuts than right-sizing programs and agencies, post-COVID. Republicans are pretty pleased with his tax package. Now that we have seen systemic surpluses, it’s time to provide broad-based tax relief that I believe can go a long way in providing for growing for Connecticut’s future.”

In a new twist, Lamont’s budget address will precede the annual briefing for the news media from Jeffrey Beckham, who as secretary of the state Office of Policy and Management, is the governor’s budget chief.

Lamont has already offered three major initiatives on gun safety, including suicide prevention, mass shootings and other measures. He has also submitted legislation to deal with the state’s growing problem of trash and recycling management.

On Thursday, the Senate and House of Representatives are scheduled to discuss and approve a wide-ranging legislation that would extend the state’s fiscal guardrails, including caps on annual levels of bonding long-term debt; expand the bottle deposit bill to include seltzers that have alcohol; extend free school lunches through the academic year; and support UConn in possibly seeking a grant for aerospace research on jet engines to run on hydrogen.