Gov. Ned Lamont unveils his adjustments to the two-year budget today and while the state of Connecticut is in the black by hundreds of millions of dollars, there is not much spending they will be able to do beyond what was already allocated.
Sen. Cathy Osten, who co-chairs the Appropriations Committee, and received a briefing of the governor’s budget Tuesday said they will be looking at it and recommending changes.
She declined to offer many specifics, but said there are no surprises from what has already been announced.
Initial confusion arises from the surplus forecasted in the preliminary budget for June 2025, expected to reach approximately $750 million before a $59 million boost in revenue projections. Despite this apparent surplus, the next budget faces challenges, exceeding the spending cap by $30 million and lacking a required built-in surplus.
Democratic leaders aim to secure flexibility for an additional $200 million to $300 million in spending to address critical needs, yet consensus remains elusive.
Meanwhile, a plethora of funding requests, totaling around $600 million, spans various essential services. From higher education, grappling with a $140 million deficit, to nonprofit social services agencies seeking to bridge a $480 million inflation-induced gap, the demands are multifaceted.
Osten said she met with individual nonprofit providers Tuesday morning and they are all very worried about continuing existing services.
However, when any constituent group asks the state to spend beyond what has already been allocated the answer has to be “no,” Osten said.
“What they are looking for us to do is comprehensive change and most of that change is going to have to come from the executive branch,” Osten said.
She said it’s not hard to explain the limits on the budget because of the 2017 fiscal guardrails, but “it’s hard for people to accept.”
Anticipating pressure from rank-and-file lawmakers, attention turns to Medicaid rate increases and childcare services. Lamont proposed doubling childcare funding by $50 million, drawing from reserves designated for magnet and charter schools. However, Medicaid rate changes will have to wait another year.
She said many of these problems are “multi-year problems.”
Rep. Holly Cheeseman, R-East Lyme, said she didn’t see that Lamont used any “gimmicks” to get around the guardrails in the budget, which is appreciated.
She said it doesn’t make many changes to the revenue side, but moves around some spending and most of what was used to pay for the increase in spending was an adjustment to the current budget.
“I think in terms of cuts there were areas and where money had been allocated was not actually needed,” Cheeseman said.
She said the budget still uses some of the COVID money, but her understanding is that it will need to be funded by the general fund going forward.
“That’s going to be a problem for another legislature, another day,” Cheeseman said.
She said the priorities in the budget are what the governor has maintained they are: “providing opportunities for Connecticut residents to work and live here affordably.”
The governor will address a joint session of the legislature at noon today.
