Connecticut

Lamont to veto striking workers benefit, defends budget guardrails

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State officials shared their thoughts and opinions on budget philosophies, recent bills, and the end of a legislative session.

Gov. Ned Lamont plans to veto a bill that would give financial aid to striking workers.

Lamont told reporters in his office about his decision Thursday while reflecting on the legislative session that ended at midnight.

“Does that mean I want the taxpayers subsidizing striking workers? I don’t think I do,” Lamont said, defending his record as a pro-labor governor.

Aside from the veto, Lamont was mostly positive about the legislative session.

“I think the legislature did some important things this session, even though it was a short session,” he said.

Lamont specifically touted bills to expand paid sick leave to almost all workers by 2027 and a housing bill that includes incentives for municipalities to build more affordable housing.

But when asked by reporters, he said he is against a bill to let striking workers receive aid from a $3 million state fund.

Democrats were able to push the bill through the Senate with 10 minutes to spare Wednesday, despite Republican threats of a filibuster.

“What it comes down to for the striking workers is standing up for every worker that’s out there,” said Sen. Bob Duff, (D-Majority Leader) before Wednesday’s vote.

Lamont also praised plans to spend as much as $400 million in unused American Rescue Plan Act funding on certain priorities, including higher education, early childhood education, and nonprofit service providers.

The deal came after the Appropriations Committee decided not to reopen the current two-year budget. The move delayed a looming debate over the fiscal guardrails.

Democratic leaders in the legislature say they need flexibility, especially around the volatility cap.

The cap limits how much the legislature can spend from certain volatile revenue streams, like quarterly income tax payments from wealthy investors.

Connecticut raked in more than $1 billion over the cap, a figure that doesn’t include a $256 million surplus in the operating budget.

Money above the volatility cap can only go toward one of two uses: the budget reserve fund – also known as the Rainy Day Fund – or into pensions.

“We have to recognize needs have expanded since then, we have the resources to deal with them,” said Sen. Martin Looney, (D-President Pro Tem.

Lamont, though, continues to be far more supportive of a strict interpretation.

“Maybe some think that’s too fast, I think that’s the right thing,” he said. “It's saving the taxpayers hundreds of millions of dollars a year.”

Republicans agree that the state should continue to use excess revenues to pay down pension debt.

“I don’t understand complaining about a volatility cap that’s ensuring paying down the second highest debt per capita in the country,” said Sen. Stephen Harding (R-Minority Leader).

Business leaders say the fiscal guardrails help make the state more attractive to employers.

“They're keeping spending in check to levels that we can not only afford now but also looking into future years,” Connecticut Business and Industry Association Vice President of Public Policy Chris David said.

Nonprofit service providers, though, say they’ve been underfunded for years, and they need help.

“If a family was on hard times and was having trouble putting food on the table but got extra money in, it would both put food on the table and pay debt,” Connecticut Nonprofit Community Alliance President and CEO Gian-Carl Casa said.

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