by Christian Wade
Connecticut Gov. Ned Lamont has signed a bill extending “guardrail” fiscal reforms that have been credited with helping turn the state’s once-troubled finances around.
The measure, which was approved by the state Legislature last week, will keep in place a raft of spending “guardrails” that were initially approved as part of the 2017 fiscal year budget for at least another five years.
That includes a spending cap that keeps budget expenditures in line with changes in personal income or inflation, whichever may be larger. It also includes a cap on the value of bonds the state government can issue to finance capital projects, such as new school construction.
The bill also calls for spending $60 million to continue free school breakfast and lunch for the rest of the school year, with federal COVID-19 pandemic related funding expected to expire at the end of the month.
Money for the free meals will come from the state’s share of federal American Rescue Plan Act funds.
“The fiscal guard rails means we have the resources in place that allows us to make key investments in people, starting with food,” Lamont said in a video message after signing the bill. “We’ve learned over the course of the last year or so what it means to have a free lunch, free breakfast…help those middle class parents who may be having a hard time with inflation, save them a little bit of money.”
The fiscal controls have helped the state build up surpluses, reserves and accelerate payments on the state’s pension debt, which is one of the highest in the nation.
Connecticut closed out fiscal year 2022 with a surplus of $1.3 billion, its fourth consecutive year-end surplus for a total of $2.1 billion over that four-year period, according to the state Comptroller’s Office.
Meanwhile, the state has squirreled away $7.2 billion in its reserves or ‘rainy day’ fund, the Lamont administration said.
Lamont had pushed for a 10 year extension of the fiscal controls, but lawmakers opted to keep the fiscal controls in place for another five years with the option to extend them.
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Christian Wade is a contributor to The Center Square.
Photo “Ned Lamont” by Ned Lamont.
