Down To The Wire: Lamont Not Budging On Proposed $46B Budget

Danbury CT

03 June, 2021

6:20 PM

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CONNECTICUT — With just six days left in the current legislative session, Gov. Ned Lamont has signaled lawmakers that he is standing firm on adhering to the statutory spending cap, in "an honestly balanced budget." Calling his proposed spending plan "progressive, balanced and bold," the governor said that "gimmicks" had gotten the state in trouble in the past, and that he was "not going to play any games" with the two-year $46 billion budget currently on the table. During the course of the 8-plus months of negotiations, the Appropriations Committee indicated their willingness to skirt the spending cap using an accounting maneuver known as a "revenue intercept." The cap is designed to prevent appropriations from growing faster than personal income. The governor also warned that taxes should be kept in check by "very strong" revenues, which have been bolstered by federal coronavirus relief. Citing his own experience as a businessman, he has previously warned lawmakers that new taxes following so quickly in the wake of the coronavirus pandemic would result in a commercial exodus from the state. In the early days of budget negotiations, the legislature had proposed a $3 billion hike in additional taxes. Melissa McCaw, secretary of the Office of Police and Management, told reporters at the Thursday news conference that revenue from the legalization of cannabis would likely be included in the final budget. Equity issues centered around getting those revenues back to the communities traditionally hard hit by marijuana laws has stalled the passage of the governor's bid to legalize its use for adults. But McCaw indicated that "the governor's policy team has been in negotiation with chairs and they obtained some agreement on how to distribute funds." Lamont's chief of staff Paul Mounds cited "duplication of current state government" as another sticking point in the current negotiations. As an example, he said Democrats in the State House wanted to add an Office of Pandemic Preparedness which mirrored existing functionality in the Department of Public Health and the Department of Emergency Management. The General Assembly is scheduled to adjourn on Wednesday. Lamont said he hoped to have a deal before the end of the weekend.