CONNECTICUT, USA — On Wednesday, Governor Lamont unveiled his second state budget. It's a 46-billion-dollar budget aimed at closing a deficit, getting to other side of the pandemic, holding the line on spending, keeping promises, and raising revenues without broad tax increases.
Gov. Lamont has vowed a balanced budget, on time. But he’s got to close a 1-billion-dollar deficit. How will he do it? Raising revenue, stimulus help from the feds, and money from the rainy-day fund.
A state budget is more than line items. It’s about priorities. Chief among them is COVID-19. "Build on our $500-million investment in a robust testing program and continue to ramp up our COVID-19 vaccination program," said Gov. Lamont during his budget address.
The Governor warned of prison and nursing home closures. Republicans are supporting a seat at the table. State Sen. Kevin Kelly said, "We have seen the detrimental impacts of social isolation on our senior population and on our most vulnerable residents. The voices of our seniors and their advocates have been silenced."
Lamont says he continues to support struggling small businesses. "With the hope that this time the vaccine will make the recovery more permanent."
Gov. Lamont is proposing new streams of revenue too including legal recreational cannabis. "These additional revenues will go to distressed communities which have been hardest hit by the war on drugs," said Gov. Lamont. It would also expunge criminal records for marijuana drug convictions. House Republican Leader Rep. Vincent Candelora said, "It comes with a great cost. As we know there is additional associated with it and other societal ills, so I don’t see that as a revenue gain, I see that as a wash at best."
Lamont also wants money from sports betting. "My administration has been in active negotiations with our tribal partners," remarked the Governor. It would require renegotiating the existing compact. The tribes want exclusive rights. Rep. Candelora said, "It’s time to modernize that structure and to help prop up our casinos that have been so devastated by the pandemic." Other entities like SporTech and the CT Lottery believe they should be part of the revenue pool.
Fixing the broken special transportation fund is another one of the Governor's priorities. Tolls were never mentioned. Two revenues are proposed including money from a multi-state climate initiative Republicans say would lead to a gas tax, and a tax on big tractor trailers. "Apply only to those larger heavy weight trucks which cause the vast majority of damage to our highways," said Gov. Lamont. Republicans say the budget includes several hidden taxes. Senate Republican Leader Kevin Kelly said, "We believe that a better way requires property tax relief for middle class families."
Lamont says he will hold the line on money to cities and towns, continue to level fund schools, recruit minority teachers, lower healthcare costs, increase broadband internet access and modernize and digitize government. "Let’s get to work," he said.
The legislature also has the opportunity to draft their own budgets. Republicans haven’t decided yet if they’ll do that. They didn’t last time. Republicans also worry that the Governor is making too many assumptions about federal money that hasn’t been allocated. Governor Lamont didn’t propose any new taxes, but he is continuing some taxes on businesses and retired teachers that were set to expire. He also resisted calls from the progressive wing of his own party to impose a so-called 'mansion' tax.