Politics & Government

CT Projects $2.1 Billion Budget Deficit, Rainy Day Could Help

Connecticut officials are projecting a large looming deficit, but the state has billions in its rainy day fund that could help.

Connecticut has $3 billion in emergency reserves.
Connecticut has $3 billion in emergency reserves. (Patch graphic)

CONNECTICUT — State Comptroller Kevin Lembo is projecting a $2.1 billion deficit for fiscal year 2021, but at the same time the state’s rainy day fund is more than $3 billion.

“For months now, I have been warning that it was only a matter of time until we started to see the impact of COVID-19 on state revenues. This is the rainy day we’ve been preparing for,” Lembo said. “Connecticut is fortunate to have built its reserve, leaving us more prepared than many states, but the federal government must step up to replace lost revenues and protect families, small businesses and municipalities from tax increases and devastating service cuts. It is unacceptable that Congress cannot come together to do the right thing.”

Lembo said the ongoing pandemic makes it difficult to accurate project state revenue going forward and that his estimate is cautious. He urged the state to have financial discipline.

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Gov. Ned Lamont said Connecticut’s high rainy day fund balance has left the state in a better position than other states financially, but that doesn’t mean Connecticut is doing economically well by any means. He said during a news conference Wednesday that he wasn’t looking to legalize recreational marijuana or considering other measures as of right now to plug budget deficits.

“That means we don’t have to pull the trigger like a lot of our other states have on these issues and I’m still hopeful that Congress is going to step up and do the right thing,” Lamont said.

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The pandemic continues to hit low wageworkers and Black, Latino and immigrant households the hardest financially, Lembo said.

“Widespread inequality was a problem before COVID-19 and the current crisis is worsening it,” he said. “As we approach an uncertain budget year in Connecticut, it is more important than ever to keep in mind the potential impacts of our policies and to ensure we are helping those who need it most.”

Lamont was hesitant to tap the state’s rainy day fund to plug budget deficits or for other projects before the pandemic. He cited worry that it would leave the state in a bad position during a recession. State Senate Republicans had pitched a plan that would’ve used $1.5 billion from the state’s rainy day fund to pay off pension debt, which would’ve freed up more money for use on transportation infrastructure projects. The plan was offered as an alternative to highway tolls.

New Department of Correction commissioner appointed

Lamont announced that longtime DOC official Angel Quiros will helm the department. Quiros has been with the Connecticut DOC since 1989 and first started as a correctional officer. He worked his way up the ranks and most recently has served as the department’s interim commissioner. Lamont had launched a nationwide search for a new DOC commissioner.

“Experience is imperative when it comes to the operations of our correctional facilities, and it can’t be denied that Angel is intimately familiar with Connecticut’s correctional and criminal justice systems,” Lamont said. “Our correction department has a key responsibility and role in our ongoing efforts to expand rehabilitation and prevent re-entry, and my administration remains focused on maintaining this momentum so that we can continue to drive Connecticut’s crime rate to historic lows. I look forward to working with Angel on these reforms.”

Quiros grew up in Hartford and earned a bachelor of science in human services from Springfield College.

The General Assembly will need to vote to confirm Quiros’s appointment. If done he would become the first Latino DOC commissioner in the state’s history.

DOC Commissioner Rollin Cook left his position in July due to family reasons. He was commissioner since January 2019 and previously was the executive director for the Utah Department of Corrections.

Connecticut’s prison population has dropped significantly after reaching a peak of nearly 20,000 incarcerated inmates in 2008. As of Wednesday the state’s total prison population is 9,534, a 31-year low.

The state has reduced the prison population by 2,875 inmates since March 1.

No extra funding as of now for Connecticut nursing homes

Lamont said as of now he doesn’t anticipate giving nursing homes additional aid outside what they are already getting.

The state increased funding during the height of the pandemic. Connecticut is also using federal aid to pay for mass coronavirus testing programs at nursing homes and assisted living facilities, said state COO Josh Geballe.

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