Connecticut bipartisanship avoids federal gridlock and political rancor as legislature cuts taxes, increases spending

With bitter partisan politics dividing the country for years at the national level, Connecticut lawmakers decided to head this year in the other direction.

State legislators finished their annual session with large bipartisan margins on the two-year, $51.1 billion budget and other issues that previously pitted Democrats against Republicans.

Although Democrats control the governor’s office and both chambers of the legislature, many Republicans voted for the budget this year due largely to tax cuts for the middle class.

Gov. Ned Lamont hailed lawmakers in the traditional post-midnight speech as he closed the session in the historic Hall of the House with remarks that lasted less than two minutes.

“I want to say, in all seriousness, a job well done,” Lamont told the chamber that was packed with exhausted legislators. “I want to say, in all seriousness, particularly what you did on the budget — getting that done, on time, with such strong, bipartisan support, I think sends a message.”

Lamont told lawmakers that Connecticut’s cooperation is “special” when compared to legislators nationwide.

“Don’t take it for granted,” Lamont said. “I look around the country. California’s got deficits in the tens of billions of dollars. Oregon is having a hard time getting their senators even to show up. Even Congress is locked down again right now. I hope that’s briefly. I think you showed us a different way. I think you showed us the Connecticut way, and I’m really proud of that.”

The crowd applauded before heading home after an exhausting session that included votes as late as 4 a.m. on key issues like the budget and gun control.

House Speaker Matt Ritter of Hartford said after the speech that he had told Lamont that lawmakers were tired, and it was time for some short remarks.

A major UConn basketball fan, Ritter cited the head men’s coach to explain how Democrats worked with Republicans on complicated issues like the budget and the annual bond package of construction projects.

“I would rate the session in terms of collegiality as an A plus,” Ritter said after Lamont’s speech. “I had a senator text me today, who has been here over a decade, saying it was the best session he’s ever seen in terms of working together. … Dan Hurley talks a lot about culture, and he’s right. There’s a culture here. You really cannot succeed down here if you don’t work, not only with Republicans and Democrats, but with people in your caucus who don’t agree with you. You have to reach out to everybody. The final product – we still delivered on a lot of important goals.”

The legislature, he said, provided lessons for others to learn in other states.

“It was very special. It was unique,” Ritter said after Lamont’s speech. “We didn’t get everything done, but the way, the manner in which we accomplished things, is a shining example for this country of where we need to go back to. … We’re not always going to agree. I’m so shocked that we’ve become a place where voting no is a sign of strength. Getting to yes is a sign of strength.”

Senate Republican leader Kevin Kelly of Stratford and House Republican leader Vincent Candelora of North Branford both said their caucuses pushed hard for Republican elements that were embedded into the $51.1 billion bipartisan budget. The situation became easier due to flush financial times for the budget, including a record-breaking surplus of $4.3 billion last year. This year’s surplus approaches $3 billion, including $1.3 billion from the “volatility” cap that is collected largely from capital gains on Wall Street that are paid chiefly by Fairfield County millionaires and billionaires.

“There’s some good, bad, and ugly that came out of the session,” Candelora said, “and I think overall we did well for the state, certainly with the tax cuts we were able to get over the finish line.”

Taxes and spending

Lamont’s signature push for the session was a middle-class tax cut, and the Republicans agreed after initially wanting even larger cuts.

Joint filers earning $100,000 would save $594 per year — the highest dollar amount under the proposal. Couples earning $275,000 annually would save $150 per year, which is a 1% decrease in their taxes under the provisions of the cut. The largest reduction for individuals will be for those earning $65,000 per year who would receive a cut of $290 per year.

In an effort to target the tax cut at the middle class, single individuals earning more than $150,000 per year and couples earning more than $300,000 per year would receive no income tax cuts. Overall, 1 million tax filers — or 60% statewide — would benefit.

The tax cuts would start on January 1, 2024, later than Republicans who had wanted tax cuts retroactive to the start of this year.

Lawmakers had their usual disagreements, but they did not remain gridlocked over the spending cap – as shown by finishing on time and the huge, bipartisan margins in favor of the budget.

The budget includes more money in a variety of areas, including special education, childcare provider rates, charter and magnet schools, and vocational agricultural programs, among others. It also provides a pay increase of about 4.5% for group home employees who have been on strike since May 24.

The document provides extra funding for state colleges and universities, including UConn, and sets aside $8.5 million to help leverage wiping out as much as $1 billion in medical debt, officials said.

Mayors happy

For years, Capitol insiders have said that CCM stands for the “Conference of Complaining Mayors.”

But this year, the Connecticut Conference of Municipalities was highly pleased with the budget as the towns will receive more money for education, payments in lieu of taxes, municipal aid, and fire departments, among others.

The largest chunk of funds comes for education. The current annual total bill for public education in Connecticut is $12.3 billion. The local towns pay 53%, while the state and federal governments pay the other 47% – amounting to billions per year.

“The significant, accelerated increases in state k-12 education aid – above the $135 million in the governor’s budget, and as a result of CCM’s education aid campaign, totaled an additional $150 million; with an additional $25 million in special-education excess-cost aid set aside,” said Joe DeLong, president of CCM. “All combined, there is an additional $329 million in the state budget for local public education above the current year amount.”

Working Families Party unhappy

The union-backed Working Families Party cross-endorsed numerous Democrats in last year’s elections, including Lamont.

But Sarah Ganong, the party’s state director, said the session was a disappointment in multiple ways at a time of budget surpluses when Democrats control the governor’s office and the legislature.

“After years of fiscal crisis, lawmakers had the chance to reverse cuts to social services, education, and healthcare to make economic, social, and racial justice a priority,” Ganong said. “Instead, legislators began the session by re-affirming the so-called fiscal guardrails that locked in deep cuts to higher education and mass transit, and flat funding or small funding increases – often well below inflation – to many critical social service programs. The desire for bipartisanship sets aside equity and social justice in exchange for unnecessary votes from the Republican minority.”

She added, “Lawmakers failed to pass paid sick days, predictable scheduling, higher minimum wages for tipped workers, substantial affordable housing reforms, or healthcare legislation to provide coverage for undocumented immigrants up to age 26. … Our state deserves more than some small tax cuts and yet another austerity budget. We deserve an equity agenda and a moral budget that brings everyone to the table and has working families at its center.”

Ritter, too, cited paid sick days as a key bill that did not get passed and would resurface again next year.

“I know we’re going to make progress on that because even the conversations leading up to it brought people together,” Ritter said.

Presidential primaries

State Democratic chairwoman Nancy DiNardo and Republican chairman Ben Proto rarely agree on anything. But the leaders of both political parties are now concerned that the legislature did not move the dates of the presidential primaries in 2024. The measure passed in the House, but never came to a vote in the Senate as time expired.

“Moving the presidential primary election from the last Tuesday in April to the first Tuesday would have allowed Connecticut to join several other New England states, including New York, bringing more candidates, visibility and business to our state, and giving Connecticut voters a greater voice in their party’s presidential nominee,” they said in a joint statement.“This is a missed opportunity, and we will continue to talk to legislative leaders and the governor to find a way to pass this legislation.”

In a rare move, DiNardo and Proto testified together on House Bill 6908 to change the dates, which they thought would happen this year.

No special sessions are currently scheduled, but there is a traditional veto session if Lamont decides to veto any bills.

Bond package

The most expensive item approved by both chambers in the final hours was $5 billion over two years for general obligation bonds that was packaged in the same bill with about $1 billion per year for school construction projects in Hartford, Darien, Norwich, and Cheshire, among others.

Following a relatively brief debate, the state House of Representatives voted 145-4 with the negative votes cast by conservative Republicans. Soon after, the state Senate approved the package by 35-1 at about 10 p.m. with Sen. Rob Sampson, one of the legislature’s most conservative members, voting against.

The bond projects include improvements at the Connecticut Convention Center and XL Center in Hartford, Rentschler Field in East Hartford, crumbling foundations, flooding in Bridgeport, economic development in East Hartford and renovation of the Middletown Library service center, among others. The detailed bill also includes $20 million to deter wrong-way driving, $10 million for Gampel Pavilion on the UConn campus in Storrs, and $60 million over two years for deferred maintenance at the UConn Health Center in Farmington.

A key point, however, is the money will not be spent until approval from the 10-member State Bond Commission that is chaired by Lamont. As such, some projects on the legislature’s extensive list traditionally do not get approved by the governor.

Small businesses

For months, Lamont called for $60 million in tax relief for small businesses that pay the pass-through entity tax while operating as limited liability corporations and other partnerships. That relief was a major priority for the Connecticut Business and Industry Association, but it was not included in the final package.

“The failure to restore the pass-through entity tax credit was particularly frustrating, as that was featured in three different budget proposals during the session. Why was such a critical measure considered expendable?” asked Chris DiPentima, CBIA’s CEO. “That’s $60 million that could be returned to 123,000 small businesses, many of them struggling to navigate the labor shortage, inflation, rising healthcare costs, and ongoing supply chain issues.”

Lamont, though, said there was a trade-off.

“I thought the pass-through entity tax cut would’ve been very helpful for our small businesses, the so-called LLCs,” Lamont told reporters. “I insisted if they’re not going to do that, that money is going to go to a tax cut. So a lot of that went to help out folks on, over and above $100,000. So that was the trade-off we made.”

Summer youth employment

Hartford-based Capitol Workforce Partners said the budget did not have encouraging news for youths aged 14 to 24 for summer jobs.

“The new state budget significantly reduces the proposed increase to youth employment, providing a small increase of $800,000 to the standard $5 million statewide CT Youth Employment Program,” the group said. “Accounting for the increase in minimum wages and program costs, this will provide summer employment for the same number of youths as the previous year, not meeting the needs of thousands of young people applying for the summer youth employment program.”

The $800,000 increase was far smaller than the governor’s proposed increase of $10 million for the next fiscal year and the appropriations committee’s recommended increase of $5 million.

Overall progress

While many bills failed over the past five months, Ritter said that major goals were accomplished as lawmakers worked collaboratively.

“No session is perfect,” Ritter said in an interview as he looked around the crowded chamber. “Sometimes in politics, you leave a meeting and you drive home and all you do is curse the fact that you were at that meeting and that you serve with these people. Everyone here has a smile on their face. They’re proud of what they accomplished for their state. It’s really unique. It sounds corny. It sounds hokey. But there’s something special about what happened in the last couple of weeks, and I’m really proud to have been a small part of it.”

Christopher Keating can be reached at ckeating@courant.com