In This Issue:

From Paddi's Desk

On The Marble

Municipal Roundup

Federal Focus

CT Agency Corner

This Day in CT History

This Week's News:

Unions Push to Gut Fiscal Guardrails, Demand Billions in More Spending

State unveils dashboard to track Bipartisan Infrastructure Law funds                     

As 2024 draws to a close, Connecticut finds itself at a pivot point. This year has been one of economic recalibration, defined by both successes and significant challenges as the Connecticut elected officials attempt to balance fiscal responsibility with the demands of its residents as well as social conscious. With fiscal guardrails in place, shifting revenue estimates, and a new legislative session on the horizon, the state faces a critical decision about the path forward.



"The guardrails implemented by the legislature have been an essential tool in maintaining fiscal discipline," said State Comptroller, Sean Scanlon, earlier this year. "However, they also require us to make tough choices when revenues fluctuate unexpectedly." These guardrails, made up of a volatility cap and mandatory deposits into the Budget Reserve Fund, have been praised by business leaders, municipal officials and economic analysts for ensuring fiscal stability.

But many in the social service organizations and community leaders feel they also limit the state’s flexibility in addressing immediate needs, particularly in areas like education, infrastructure, and healthcare.

Connecticut’s revenue outlook has been dynamic. Earlier in the year, projections painted a rosy picture of surpluses, boosted by strong capital gains and a robust real estate market. However, by the third quarter, updated revenue estimates revealed a cooler economic climate. The decline in corporate tax collections and limited growth in personal income taxes highlighted vulnerabilities in Connecticut’s revenue streams.

“Revenue estimates are like the tides—they ebb and flow,” remarked Ben Barnes, former Secretary of the Office of Policy and Management. “The challenge for policymakers is to prepare for the unexpected while maintaining a vision for long-term growth.” The unexpected, in this case, includes potential federal funding cuts due to the curtailment of Covid-19 pandemic dollars, the ongoing impacts of inflation on state spending and a new “Sheriff” in Washington, D.C.

The legislature’s task in 2025 will be twofold: to navigate these fiscal uncertainties and to advance policies that promote sustainable economic growth. Among the pressing issues is the future of Connecticut’s workforce and where to house them. Demographic shifts and an ongoing “talent gap” threaten the state’s competitiveness. Investments in workforce development and education are critical, but they will have to be balanced against the constraints of the state’s fiscal policies.

Healthcare remains another pain point. With rising costs and a growing need for mental health services, especially in the wake of the COVID-19 pandemic, legislators will have to grapple with how to fund these essential services without overextending the state’s resources. As Governor Ned Lamont noted, “Our responsibility is to ensure that every dollar we spend reflects our values and priorities. Health, education, and infrastructure are non-negotiable.”

Infrastructure modernization, particularly in transportation, also looms large. The state’s aging roads, bridges, and rail systems require substantial investment to meet the demands of the 21st century. Yet, finding the resources to fund these projects—while adhering to the spending cap—will test Connecticut’s Yankee ingenuity and resolve of state leaders.

As the legislature reconvenes, bipartisan cooperation will be essential. The fiscal challenges ahead are too complex and far-reaching for partisan gridlock. House Minority Leader, Vincent Candelora, emphasized this point saying, “We have an opportunity to come together and address these challenges with pragmatism and purpose. Our constituents expect nothing less.”

One potential face-off for the legislature in 2025 is to revisit the spending cap formula. Adjusting it to account for inflation and other economic realities could provide the state with more flexibility. Additionally, there’s a growing call to reassess the volatility cap to allow for greater investment in critical areas during times of economic growth.

The challenge to foster public-private partnerships could be sticky. Leveraging private sector resources for infrastructure projects, workforce training, and technological innovation could help bridge the gap between limited public funds and ambitious goals as long as the business and development community are at the table to ensure it’s workable and sustainable for them as well as the state.

Looking ahead, there is cautious optimism. Connecticut’s Budget Reserve Fund, which stands at a historic high, offers a buffer against economic downturns. However, as fiscal watchdogs like the Connecticut Business and Industry Association (CBIA) have warned, “Reserves are not a substitute for structural reforms.”

As Connecticut closes the books on 2024, the state’s leaders will need a perfect mix of pragmatism and vision. The challenges might be daunting, but so are the opportunities to build a more sustainable and prosperous Connecticut. In the words of former Governor Ella Grasso, “There’s no magic formula, it’s hard work, determination, and a commitment to doing what’s right for the people.”

The year ahead will may test the resolve and bi-partisanship of Connecticut’s legislature, but collaboration and forward-thinking policies can assist decision makers as they navigate these uncertain waters and emerge stronger.

As the late management guru Peter Drucker once said, "The leaders who work most effectively, it seems to me, never say 'I.' They don’t think 'I.' They think 'we'; they think 'team.' They understand their job is to make the team function. They accept responsibility and don’t sidestep it, but 'we' gets the credit. This is what creates trust and enables you to get the task done." Go for it!  

Chairmanship and Ranking Member appointments were finalized for legislative committees this week, and the State Bond Commission is preparing for its final meeting of 2024 before the next legislature is sworn into office. The largest outstanding item of business to address prior to the beginning of session is the publishing of state agency legislative proposals and budget options that each designated committee will consider at the request of the Executive Branch.

Making legislative proposals available to the public was a practice that began under Governor Malloy. For years, these public documents were not shared openly by state agencies and were made available through the Freedom of Information Act (FOIA). That said, the policy of making them available a month or two prior to the start of session has since eroded to either right before the legislative session begins or some proposals not being made public at all. This policy started to change under Governor Lamont’s second term in office and has captured criticism especially now when proposals that are submitted have a direct impact on the lower than normal availability of budget funds.

If an S&L team member reaches out to you regarding these proposals, here are answers to a few questions on the topic.  

Q: What is the difference between a legislative proposal and a budget option?

A: Legislative proposals are draft bills that are submitted to a legislative committee as requests from a state agency. Normally, the committee will raise each legislative proposal for a public hearing as a courtesy to that state agency. A budget option pertains to the remaining six months left of the fiscal year as budget increases and reductions are being requested by the state agency.

Q: Does a particular legislative proposal mean the issue is strongly likely to pass? Can it be changed before being filed as an actual bill?

A: The short answers are maybe and yes (if you act quickly). Given the virtual nature of the legislative session, getting ahead of things in a timely way and working with state agencies is more important than ever. If shared legislative proposals impact your business or service, we strongly recommend being engaged early!

Q: What should I expect if S&L sends me a legislative proposal that affects me?

A: We will walk through the recommended next steps once these proposals are released, and if there is a proposal specifically tied to your area of interest we will schedule a virtual meeting with that state agency.

Q: Do Chairs and Ranking Members negotiate directly with the state agency on this language?

A: Direct dialogue on these proposals frequently happen but it’s important that stakeholders directly impacted on proposals are also at the table early for those discussions. 

Residents across four towns near the Reworld trash-to-energy incinerator in Bristol, have expressed mounting frustration over persistent and worsening noise issues, prompting the Bristol-Burlington Health District (BBHD) to seek assistance from Attorney General William Tong and consider legal actions against the company. Despite Reworld’s claims of implementing extensive noise reduction measures, including new equipment and independent assessments suggesting compliance with local ordinances, neighbors report ongoing disruptions, sharing grievances online citing negligible improvements. The BBHD has issued notices of violation and filed requests for enforcement assistance from state authorities, including a criminal complaint and potential fines. As the issue escalates, local officials emphasize the plant’s significance in waste management amidst a broader state disposal crisis while stressing the need for a resolution to the noise problem impacting the community’s well-being.

Thirman L. Milner, Hartford’s and New England’s first popularly elected Black mayor, was honored in state at Hartford City Hall on Thursday following his passing in November at age 91. Serving as mayor from 1981 to 1987, Milner was remembered as a trailblazer in Connecticut politics, a champion for civil rights, and an advocate for equitable education and minority representation. His legacy was celebrated by mourners and leaders, including Hartford Mayor Arunan Arulampalam, who highlighted Milner’s resilience and dedication to the community. A procession and funeral on Friday the 13^th will honor his contributions, including his civil rights work, time in the Connecticut legislature, and leadership of the Greater Hartford NAACP. Milner’s life exemplified his commitment to justice and equality, inspiring generations to pursue transformative change.

Former Guilford police officer and school board candidate William Maisano was sentenced to two years’ probation after being convicted of second-degree threatening and breach of peace for an email he sent regarding a high school teacher’s decision to dye her hair in Pride colors for graduation. The email, which stated “there will be hell to pay” if the teacher proceeded, prompted safety concerns among school officials and led to his arrest after a complaint was filed. Maisano defended his actions as exercising free speech and expressed no personal issues with LGBTQ individuals, emphasizing concerns about political expression by teachers in schools. His attorney, Mario Cerame, filed an appeal, arguing the phrase did not constitute a clear threat of physical violence under First Amendment protections. The appeal challenges the legal interpretation of verbal threats and is expected to take years to resolve.

Federal and State Funding Partnerships

In the next few weeks you are going to see a lot of funding announcements come from the federal and state side. With the pushing of a federal government funding bill, end of the year grant opportunities, and maybe more importantly, the allocation of ARPA money, it may seem like the dollars are flowing from the state and federal governments just in time for the holiday season. Let’s take a look at some of the funding that may be coming our way and some of the funding streams that may be drying up.

Statewide, the Office of Policy and Management has been in the process of approving several different ARPA streams that the state legislature worked on last year. This is a long process of vetting that various state agencies handle before the dollars are actually sent out. Important to this is the date - in two weeks this money runs out. If there is ARPA money not accounted for by the end of the year, it goes back to the feds. Be on the lookout for a lot of the dollars still out there to be allocated and the funding to come just before Christmas.

If you have a stake in Long Island Sound (LIS) and the economy around it, this was a big week. The futures fund announced over $12 million in grants to state projects across CT. With 23 million of us living within 50 miles of LIS, this is a big deal. This fund, promoted by the state but administered by the EPA, is the quintessential example of state and federal partnerships.

If you are a Fairfield county resident traveling into New York City for work, good news will be fast approaching. Over $250 million has been allocated by the Department of Transportation in partnership with Connecticut’s Department of Transportation for projects across Connecticut. A huge win for the state.

The end of the year is a wild time for government funding. It’s the time of year that our federal government is required to pass a budget for itself (whether it’s a week extension or a longer term funding bill). It is also the time when a significant number of grant applications come due (Community Investment Fund, Firefighter FEMA grant, DOT BILT grants, etc). As many of us focus on end of the year books, the federal and state governments continue down their path of trying to walk and chew gum at the same time. To all of these awardees for some of these grants, congrats and happy holidays. For others, get ready to start opening the application process for some that are out there. Most of which we will outline in the new year for your review.

This week, Governor Lamont and the Department of Social Services issued a report on Connecticut’s Medicaid program. The independent report conducted by Accenture and Manatt concluded that, (1) Connecticut's Medicaid program has lower costs and similar access compared to peer states, and (2) adopting a managed care model would likely not save the state money.

Connecticut’s Medicaid program uses a managed fee-for-service model, where the state pays providers directly. The report found that the program spends 14% less per enrollee than peer states and has significantly lower administrative costs, although it struggles with higher expenses for people with chronic or complex needs.

 Prior to 2010, Connecticut used managed care for their Medicaid program, which is still utilized by 45 states across the country. While that model helps a state predict and control costs, critics said it led to poor quality of care in Connecticut.

The report comes at a time when Connecticut is already projecting a $210M Medicaid cost overrun, and pressure mounts on the Governor to amend the fiscal guardrails and raise the spending cap to address the increase. The debate over Connecticut’s Medicaid program will continue to be a hot topic, especially in the context of the state’s aggressive savings program. 

December 13: Citizens Save the "Birthplace of the Nation's Greatest Hits" From the Wrecking Ball

New Haven’s iconic Shubert Theatre, which earned the nickname “Birthplace of the Nation’s Greatest Hits” after decades of distinctive dramatic debuts, first opened its doors in December 1914. It was the second theater built by the Shubert Organization, a family-run theater management business, and was patterned after the original Shubert Theatre in New York City, featuring ornate, gilded details throughout the theater interior. Two years after its grand opening, the Shubert hosted the premiere of Robinson Crusoe, Jr., starring Al Jolson, who was then considered one of the world’s foremost entertainers, and over the ensuing years would continue to function as an “off-Broadway” incubator where some of the world’s most beloved musicals and dramas would be staged for the first time.

In the early- to mid-20th century, the Shubert’s New Haven audience was considered to be reliably cultured and well-educated, and playwrights like Neil Simon, Tennessee Williams, and Eugene O’Neill were eager to see how their works were received there before tweaking them and bringing them to larger audiences in New York. The famous musical-writing duo Rodgers and Hammerstein were especially fond of the Shubert and debuted several of their most well-known musicals there, including South Pacific, The King and I, The Sound of Music, Carousel, and Away We Go (which changed its name to Oklahoma! before making the move to Broadway). Throughout its first 60 years of existence, the Shubert hosted an endless stream of some of 20th-century America’s most famous celebrities, from Spencer Tracy, Humphrey Bogart, Jimmy Stewart, Clark Gable and Katharine Hepburn from the black-and-white film era, to Sidney Poitier, Julie Andrews, Robert Redford, Carol Burnett, James Earl Jones, future First Lady Nancy Reagan, and countless other stars.



Faced with increasing competition from movie theaters, skyrocketing costs of theater productions, and economic stagflation, the Shubert Theatre struggled to stay open in the early 1970s and closed its doors in 1976. Right around the same time, New Haven city planners were pursuing an aggressive agenda of “urban renewal” that threatened to demolish older, unfashionable buildings like the Shubert. Through the concerted efforts of many New Haven residents and community arts groups, the theater was saved from destruction and slowly and painstakingly restored over the next several years. Seven years after it was nearly destroyed, the Shubert staged its own dramatic comeback story, reopening on December 13, 1983. Today, it remains New Haven’s premiere theater venue, hosting dozens of touring Broadway productions, musicals concerts, and other productions every year.

To view the full story on the CT Historian's website, click here.