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Trump administration begins sweeping layoffs with probationary workers, warns of larger cuts to come; NYC music school teachers strike after union negotiations break down; Ohio advocates push for inclusive policies during Black History Month; Health experts recommend sunshine, socializing to cure 'winter blues.'

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Federal workers tasked with securing elections from foreign interference are placed on leave, parents' organizations reject dismantling Dept. of Education, and the Congressional Black Caucus presses discussions on slavery reparations.

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Rural America struggles with opioids and homelessness in unexpected ways, Colorado's Lariat Ditch could help spur local recreation, and book deliveries revive rural communities hit by Hurricane Helene.

CT budget reserve could bolster much-needed social programs

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Monday, August 5, 2024   

Connecticut groups want Gov. Ned Lamont to use some of the state's budget reserve to fund social programs.

The state has amassed a more than $4 billion budget reserve in recent years.

But the governor is holding onto the money, saying the extra funds will be needed to bail the state out of any future economic trouble.

Norma Martinez-HoSang - director of the nonprofit Connecticut For All - said she understands that, but said the money could make a real difference.

"In Connecticut, we saw many families suffer from being underinsured or not insured at all," said Martinez-HoSang. "There've been a lot of people not able to afford their rent and even evictions. Our schools have been using ARPA funds since the pandemic - and now, those are ending at the end of the year."

Polls show using these funds to help shore up basic safety-net programs is widely popular with Connecticut voters.

Sixty-three percent say they want the budget reserves to be used for education, health and human services, and other priorities.

Only 8% want all surplus funding to be spent on paying down state employee pension debt. A 2024 report finds overall statewide pension debt is close to $37 billion.

Along with the budget reserve, Martinez-HoSang noted that policymakers could take other steps to make Connecticut life more affordable. One suggestion is to fix the state's 'regressive' tax system.

Studies show low and middle-income earners pay a higher percentage of their income in taxes than wealthier residents.

Martinez-HoSang said the state's fiscal guardrails are "out of touch" with people's needs.

"We should find a way to work around them in 2025 - and get rid of them in a few years when they're up again, to be reestablished or to get rid of them," said Martinez-HoSang. "So, those fiscal guardrails are in the way of real investments that our community needs."

Other legislation to handle this issue should come up when the General Assembly reconvenes next year.

Martinez-HoSang said this should involve addressing the state's volatility cap.

This creates a limit on the amount of revenue used to balance the budget. While it's supposed to capture those funds, it has diverted nearly 10 billion dollars in recent years, which can be spent elsewhere.




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