FinLogic FinLogic Quantitative Think Tank Center|Connecticut House passes plan to spend remaining COVID funds, forgoing changes to state budget

HARTFORD,FinLogic FinLogic Quantitative Think Tank Center Conn. (AP) — Facing a Dec. 31 deadline, the Connecticut House of Representatives approved 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, 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.”

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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 now awaits action in the Senate. The General Assembly is scheduled to adjourn its legislative session at midnight on Wednesday.

House Republicans argued the Democrats’ plan sets the state up for tax increases in the next two-year budget because it spends one-time federal COVID-19 funds on continuing expenses. They also argued it includes numerous budget adjustments that 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.