Lamont is parsimonious, but progressive

Jan. 14—If Republican state lawmakers can find some solace in their underdog position — they again face large Democratic majorities in the House and Senate — it is that Gov. Ned Lamont is a moderate Republican when it comes to fiscal policy.

Lamont announced in his State of the State Address, after being sworn-in for a second term following a solid reelection win, that it was “time to enact meaningful middle-class taxes cuts.”

He is not the only one among Democrats who emphasizes tax reductions.

Senator Cathy Osten (D-Sprague), who is co-chairs powerful Appropriations Committee has stated that she would like the state to increase its income tax exemption in retirement. Under the existing caps, retirees who have incomes below $75,000 and married couples earning less than $100,000 are eligible for tax exemption.

The Democratic side also supports expanding and making permanent the state child tax credit.

The Republican caucus, which — no surprise — also wants tax cuts, must be pleased that the debate may well be about what taxes to cut and by how much, rather than about spending all that surplus.

In his post-inaugural address, the governor gave due credit to the bipartisan budgetary reforms passed in 2017 — establishing spending, volatility, and revenue caps — with providing the state with a healthy surplus and allowing it to start playing catch-up on the state’s grossly underfunded pension system. Lamont stressed that it was not the right time to abandon fiscal safeguards which made it possible.

Connecticut has a budget reserve of $3.3 billion, which is equal to 15% the general fund. This is the maximum law allows. This fiscal year ends June 30, and a surplus of $2.8 billion is expected.

Liberal critics of Lamont see a disconnect between Lamont’s support for progressive social policy and his unwillingness to spend more to address inequities regarding education and opportunity.

Lamont is Dr. Progressive and Dr. Scrooge, which are both 19th century literary references.

Lamont was a progressive and supported paid family leave and raising the minimum wage. She is strongly against gun control. Lamont supported and signed legislation to address the Black Lives Matter movement. These reforms were aimed at reducing police discrimination in how laws are applied and making officers more accountable for their misconduct.

Lamont was fiscally prudent and resisted the calls of the progressive wing to raise taxes on the state’s richest citizens during his first term. He claimed that such a tax increase would be counterproductive, as it would drive multi-millionaires to other states, along with the substantial taxes they pay.

The Connecticut Mirror revealed how the Lamont administration tried to delay and even scuttle “Baby Bonds,” a program progressives hailed as innovative when it was passed in 2021. It would put $3,200 into a trust for children born under the state’s HUSKY program for the poor. They are expected to earn at least $11,000 by the time they reach adulthood. The money could be used for tuition or to purchase a home or start up a business. Although he signed it into law the governor was not happy with the plans to borrow the funds. He also worried about the unanswered questions, and the possibility of bureaucracy. What safeguards would you use to protect it? How would outreach be managed over such an extended period of time? What about parental consent?

With the programs biggest advocate, Treasurer Shawn Wooden, having not sought re-election, the future of the program is in doubt — and Lamont’s tightwad reputation enhanced.

It will be next month that Lamont releases his two year spending plan, which will reveal exactly what he has in mind for fiscally moving forward.

Progressives in the Democratic caucus will pressure Lamont, supported by labor and social advocacy organizations, to do more to reduce Connecticut’s extreme wealth inequality by redirecting more money to housing, education, and human services.

But if he pushes back against big increases in such spending — in the words of his State of the State Address, prioritizing “fiscal stability” as “the foundation to inclusive growth” — Lamont could well turn to an unlikely coalition of moderate Democrats and Republicans to support him. This is the same type of coalition that passed his budgetary reforms.

Paul Choiniere was the former editor for The Day’s editorial pages. He is now retired. You can reach him by email at [email protected].