The run up to the biggest speech to be given by CT's newest Governor has started. On Wednesday, Governor Lamont will address a joint session of the CT legislature and provide his two-year blueprint for how CT will pull itself out of the red and start a four-year path to strong economic growth and prosperity.

Rumors and official statements have filled the LOB halls all week. There are whispers of the grocery tax, which was off the table, now might be back on the table. Or it may be limited to a surcharge on beverages, or maybe expanded to other services and commodities not currently taxed in CT. No one knows for sure, but it's been a pretty frantic place as the beverage companies begin to strategize on how to fix the budget if that tax is indeed in. The pharmaceutical manufacturers, restaurants, food stores and even the retail merchants aren't happy either, as there is discussion over the sales tax being applied to them as well. Most people aren't so worried about the sales tax decrease, but many are worried about the sales tax expansion.

The administration will be looking at "quality of life" initiatives while the legislature is starting to double down on their top priorities related to workplace issues. Some of these include increasing the minimum wage to $15, paid family and medical leave, predictive scheduling as well as increased mandates for nursing homes. On top of those, a glitch in the controversial hospital tax of past years has everyone intensely waiting on the actual specifics of Gov. Lamont's budget.

He has addressed several "pro-business initiatives," which are a "debt diet" - meaning a moratorium on using the state's credit card for non-essential purposes. This "debt diet" also includes holding the line on public higher education's previous budget cuts, looking for efficiencies in agency operations and possible merging of entities such as the DECD and CERC, which we touched on a couple of weeks ago. In order for the budget to meet the Governor's promise of reducing the bottom-line expenditures, he's going to need to use some creative cost-saving mechanisms since the majority of the budget is tied up in contractual relationship with unions, vendors or federal mandates.

Most of the week, the LOB was filled with members of the public attending and testifying in the multiple committee hearings. Next week we will really see the public come out, especially in the evening session to advocate for returning past cuts as well as new cuts to their programs and services. In the morning, the committees will hear from the state agency heads, who will have to explain how they will meet the challenges that appeared in the Governor's two-year budget.

Much of the wind will come out of the Capitol after Wednesday. All focus will be on getting a two-year budget through a House which is split three ways. Those are the 50 House Republicans, 47 House Democratic Progressives, and 20+ members of the Black and Puerto Rican Caucus, who are laser-focused on urban funding and programs, while the remaining moderates and suburban representatives will have to look for a team to hook up with. The Senate is much cleaner; even with three Democratic seats up in the air, it's pretty much consensus that the Dems will hold each seat in the majority of 23, minus maybe two or three Democrats who see themselves as conservatives. Even with those conservatives, it still isn't enough to crack the necessary 19 votes to make major changes. Those changes in the Senate will be fought out within the Democratic caucus - so it's what you don't see on the Senate calendar that matters most.

 

So we sit and we wait. The building is closed on Monday, and Tuesday will be a hotbed of additional rumors and gossip. By 12pm on Wednesday, all eyes will be on Governor Lamont and listening to how he will get CT back on track.