A ‘7-year itch’ is buzzing around the state Capitol
A “seven-year itch” regarding the passing of the 2017 bipartisan budget is buzzing around the state Capitol — an itch that should be avoided if we want to protect Connecticut’s future and help every family thrive.
In 2017, an incredible series of events brought Connecticut to a historic precipice. Faced with crippling financial challenges and a shifting political climate, Connecticut lawmakers joined together to adopt ground-breaking financial protections that would drastically shift the trajectory of our state from crisis to stability.
The bipartisan budget and its financial guardrails were historic in many ways and developed through a truly remarkable process.
There was balance in the legislature, including a political tie in the state Senate and close numbers in the House of Representatives. The one-party rule that had gripped Connecticut for so many years was loosening.
The courage of three Democrats in the Senate prompted the trio to join with Republicans to vote in favor of structural budget changes, a vote that spoke volumes and brought us to collaborating in a way Connecticut had never seen.
A lame duck governor who had driven Connecticut into a “permanent state of fiscal crisis” resulted in the legislative leaders taking control.
The unique close relationship between the leaders and ability to put all politics aside and work on a solution that truly served the greater good and the future beyond.
The budget “guardrails,” consisting of the volatility cap, bonding caps, and the spending cap, were the key elements of the budget. The results have been billions of unfunded debts retired, a fully funded rainy day fund, fiscal certainty, and the ability for the legislature to keep its fiscal promises to Connecticut residents.
In the 18 years that I served as a state lawmaker, Connecticut’s budget always faced huge deficits. Budget debates were not based on the best policy to fund initiatives, but on where we could cut. It was impossible to invest in Connecticut families and advance this state on any level because one could not plan ahead with any certainty. Promises were made every year, and then promises were broken when the funds were not there.
The bipartisan budget turned this around. It reduced our unfunded liabilities by over $7B and saved hundreds of millions in interest payments which can fund programs and grant middle class tax relief. Our pension plan grew from 36% funded to 57%, still 4th lowest in the country with a national average of 78.1% funded. The guardrails proved stability for our residents and businesses by negating huge swings in taxes followed by cuts the next year. The unique events of 2017 that gave birth to budget safeguards allowed for the building of a better Connecticut.
Budgets are about priorities, and Connecticut must continue working to ensure core priorities are funded. Core services must be supported, and can be with these protections in place. The guardrails ensure Connecticut is best positioned to maintain stability in the services and core functions government must deliver to every family. Without the guardrails, I fear Connecticut would return to a time with no stability, no certainty, and a straightjacket of deficits that make it impossible to invest in people’s futures.
Berta Lippert said, “The only time you should look back is to see how far we have come.”
I urge our lawmakers to keep their eyes ahead.