Budget offers the state a path forward

For all the attention paid to other issues throughout the legislative session, including tolls, marijuana, family leave and health insurance, Gov. Ned Lamont was clear from the beginning of his term in January that his priority was fixing the mess that has been the state budgeting process.

In one major regard, he has succeeded. The Legislature is considering a vote for the two-year, $43.35 billion budget on schedule, without the need of a special session. That sounds like it should be an easy mark to hit, but, as past negotiations have dragged out for months, it hasn’t always been the case.

In terms of specifics, there are again some aspects that give hope for a better economic future for Connecticut. Lamont has been clear that he would not favor a higher income tax on those who earn the most, and the budget in fact avoids that kind of increase. And though the governor originally proposed expanding the sales tax to many purchases that had been exempt, those, too, were limited.

Still, many people will feel a pinch from those changes. The budget adds a sales tax to digital downloads, dry cleaning and interior design services.

Businesses also face new levies, and, in a change that won’t affect quite so many people, what’s being called a “mansion tax” will serve as a surcharge on the real estate conveyance fee aimed at the sale of high-priced homes.

The budget increases the amount of money dispersed in Educational Cost Sharing grants, but likely not be enough to make a major difference. In a break for municipalities, they will not be asked to contribute more to the teacher pension funds, as had been proposed. Increasing eligibility for Medicaid is a sound proposal.

What’s most notable about the budget is what’s not in there, mainly tolls. The Legislature is likely to take up the issue in a special session, with proponents arguing that the state needs more money to pay for long-deferred maintenance and upkeep. The biggest fights in Hartford are yet to come.

Looming over every budget is the continuing rise in outstanding pension costs, and on this front, the budget again puts off to the future what the state can’t afford to pay today. The plan refinances future contributions to pension funds for teachers and state employees, shifting costs more than a decade into the future. Taxpayers in 2032 are likely to rue that move.

With a large Democratic majority, passage of the budget seems likely, but Republicans quickly signaled opposition. What they have not done is come up with a plan of their own, probably reasoning that there’s no point. But it’s difficult to say no to everything without offering a counterproposal.

Lamont’s overarching goal was not simply a budget that balances, but one that takes Connecticut out of a never-ending crisis. On that score, the jury is still out. Connecticut’s economy needs to grow, and lawmakers need to ensure the state is in a position to make that happen. Whether that’s the case remains far from certain.

Lamont’s overarching goal was not simply a budget that balances, but one that takes Connecticut out of a never-ending crisis.