Connecticut Governor Ned Lamont (D) presented his $55.2 billion biennium budget proposal to the General Assembly on Wednesday.
“It should be our seventh and eighth honestly balanced budget, which invests in the future without shortchanging the very real needs of today,” Lamont said. “Unlike other states, which are cutting back, our budget will increase by over $1 billion in each of the next two years, all the while making a transformative investment in early childhood education and another round of tax cuts.
It includes universal free breakfast for public school children, free pre-K for families who make less than $100,000, an increased property tax credit and higher rail fares.
After Lamont's speech, Republican leaders said the proposals failed to address the needs of Connecticut residents.
"No energy relief, no tax relief — in fact, $380 million in tax increases. What does that say to the people of the state of Connecticut? That basically, we're going to continue to fund our bureaucracy. We're going to blow by our guardrails and go pound sand if you need help,” Senate Minority Leader Stephen Harding said.
More of Lamont’s proposals:
‘Fiscal guardrails’
Much of the discussion leading up to Lamont’s budget was about whether the governor would amend the spending laws enacted in 2017, which were conversationally called the “fiscal guardrails.”
On Wednesday, the answer was revealed: Lamont has proposed adjusting the volatility threshold to spend an extra $288.9 million in FY2026 and an extra $304.5 million in 2027. Three-fifths of the General Assembly will need to vote to approve that change.
Education
The budget proposes spending $500 million on new schools, $54 million on special education, and an increase in funds for the Learner Engagement and Attendance Program (LEAP).
It also includes universal free breakfast for public school children and free pre-K for families who make less than $100,000 annually.
Lamont wants to make free pre-k universal, laying the foundation for the program with $300 million from this year’s budget surplus.
Child care professionals celebrated the move, but they said it does not solve the “child care affordability crisis.”
“What families and businesses need is a bold solution to the child care affordability crisis that starts at birth,” said Eva Bermúdez Zimmerman, the director of Child Care for CT. “The lack of accessible, affordable child care is holding Connecticut’s workforce and economy back.
The budget also did not include the cash influx the state’s public colleges and universities hoped for.
In his budget address, the governor was frank with the sector: “The importance of higher ed does not exempt our universities from ensuring that taxpayers and students are getting the best value. They should not be immune to reform, and CT State, in particular, must reimagine how we train our workforce for 21st century jobs. Their student population is down 30%, most students don’t graduate, and costs keep escalating,” Lamont said
The system is still grappling with the loss of pandemic-era federal funding.
Lamont also proposed removing licensing fees for nurses, dental hygienists, therapists, electricians, plumbers, HVAC, sheet metal workers and teachers.
Housing
Lamont’s budget does not increase state support for housing. His proposal holds steady at $400 million annually.
He said the state would focus that money on transit-oriented housing, which is homes near mass and public transportation.
Transportation
The budget proposes rail fare increases — 5% over the next two years.
Lamont wants to spend $1.2 billion on rail improvements and $1.5 billion on roadway improvements in 2027.
Healthcare
Under Lamont’s proposal, an additional $71 million would go toward Medicaid reimbursement. State healthcare officials have said they lose more than $1 billion annually treating patients from the program.
The Connecticut Hospital Association said the budget was “devastating to hospitals and health care.”
“The governor’s budget increases the taxes paid by hospitals, reduces their reimbursements for providing care, and hurts patients while doing nothing to address the $1.4 billion annual Medicaid shortfall, increase access, or define a long-term vision for healthcare,” CHA CEO Jennifer Jackson said.
Some state doctors have stopped treating Medicaid patients because of low reimbursement rates. In January, Senate President Martin Looney (D-New Haven) said the state may have to dip into budget reserves to cover healthcare costs, especially if the Trump administration makes cuts.
The budget also proposes that weight loss drugs, like Wegovy, be covered by Medicaid only if the patient has diabetes or cardiac health issues. State law requires Medicaid to cover weight loss drugs, but the CT Mirror reported in December that it didn’t in some cases, citing costs.
Taxes
The budget includes a $50 increase to the property tax credit.
It also expands access to the credit — the threshold would be raised from $49,500 to $70,000 for single filers and $70,500 to $100,000 for joint.
Reaction
New Britain Mayor Erin Stewart (R), who announced last week that she was launching an exploratory campaign for governor, said on X she wasn’t impressed with the budget.
“My fellow residents and I are looking for immediate relief on high energy costs, the exorbitant cost of childcare, our excessive tax burden, and the crushing costs of just everyday normal goods and services,” Stewart said. “This budget fails to address the immediate nature of these pressing issues, but somehow still expands the size, scope, and cost of state government.”
Gian Carl Casa, president and CEO of the CT Nonprofit Community Alliance, welcomed the proposed increase in funding for nonprofits. However, he said, the sector couldn't afford to absorb the loss of federal funds from the pandemic era.
“Without federal ARPA funding fully annualized, the Governor’s proposal is an effective $19 million cut for nonprofits in the first year,” Casa said. "After nearly two decades of underfunding, nonprofit providers cannot absorb a cut, especially when federal funding is threatened and the state is projecting the eighth annual budget surplus.”
The state’s independent living centers were also disappointed. They had requested $1 million.
"Our five non-residential Centers were established in 1987 with federal and state funding to employ people with disabilities to help provide vital services that help others with disabilities to live, find jobs, and thrive in the community. Costs have continued to rise while demand for services has grown every year, leaving the Centers operating at and above capacity. But funding has been mostly stagnant, and we have waiting lists for services,” said Carmen R. Correa-Rios, chair of the Connecticut Association of Centers for Independent Living.
