Connecticut lawmakers debate spending remaining COVID-19 funds, forgoing changes to state budget

HARTFORD, Conn. — Facing a Dec. 31 deadline, Connecticut lawmakers were on track Tuesday to approve a Democratic plan to spend at least $360 million in remaining federal COVID-19 pandemic funds on key areas, including higher education, not-for-profit social service agencies, municipal aid and children's mental health.

Democrats, who control the General Assembly, argued the final allotment of the approximately $2.8 billion Connecticut received through the American Rescue Plan Act, coupled with state surplus funds, was enough to address the state's needs. Therefore, they argued, the second year of the two-year $51 billion state budget, which passed last year, should not be renegotiated.

They also said revisiting the $26 billion budget that's already in place for the new fiscal year beginning July 1 would have proved challenging because it's only about $1 million below the state's mandatory cap on spending.

“To open the budget would have led to a parade of difficult decisions,” said House Speaker Matt Ritter, who defended the unusual decision from Republican criticisms.

“We had a good underlying budget,” he told reporters. “If we can do really good budgets and we have to make very minor changes, that’s not a bad thing. Actually, I think it shows predictability and sustainability.”

The House of Representatives passed the legislation, which Democrats dubbed a budget “stabilization bill,” 103-48, with five Republicans joining the majority Democrats. The bill was being debated Tuesday night in the Senate, where it was expected to pass.

Republicans in the House and Senate argued the Democrats' plan sets the state up for tax increases in the next two-year budget because it spends some of the one-time federal COVID-19 funds on continuing expenses. Republican Sen. Eric Berthel predicted future budget deficits, accusing Democrats of using “budget gimmicks” from the past to avoid caps on state spending and revenues.

“This document, I believe, is setting Connecticut up for failure next year and beyond,” he said. “And by failure, I mean deficits.”

Democratic Sen. Cathy Osten, co-chair of the legislature's budget-writing committee, insisted the state is “not facing fiscal calamity under any circumstances," despite the GOP's warnings.

“We are not fiscally irresponsible in this state. We are not,” Osten said. “We have done a damn good job of taking care of issues, and we have paid down our debt and we have money in the bank.”

Osten pushed back on claims that tens of millions of dollars were being spent on state operating expenses. She said representatives from the University of Connecticut and the state university system have been told the $80 million each is set to receive is not intended for ongoing expenses. Also, she said the $50 million for nonprofit agencies that provide state services is not supposed to be used for operating costs.

Republicans on Tuesday also criticized the bill for including numerous budget adjustments they said should have gone through the regular legislative process.

“It’s difficult to really say with a straight face that this is not a budgetary process. It’s impacting revenue, it’s impacting spending,” House Minority Leader Vincent Candelora said. “I would hope that the governor would pause and have somebody do that analysis before he signs this document.”

The House GOP sent a letter to Democratic Attorney General William Tong, asking him to weigh in on whether the legislations constitutes a budget adjustment under the state constitution, which obligates lawmakers to maintain a balanced state budget. Tong's office said it was reviewing the request.

The General Assembly is scheduled to adjourn its legislative session at midnight on Wednesday.