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Opinion: If the guardrails are unconstitutional, then what?

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Opinion: If the guardrails are unconstitutional, then what?


This is the last of a six-part series on the constitutionality of the state’s “budget guardrails.” Here are Parts One, Two, Three, Four and Five.

If Connecticut’s budget guardrail statutes were determined to be unconstitutional, what are the implications for state budget policy? The following outcomes seem most likely and desirable:

1. The guardrails statute in Public Act 23-1 would revert to the status of ordinary legislation, amendable by majority votes and subject to gubernatorial veto.

2. The spending cap in the Connecticut Constitution, including the three-fifths vote “escape clause” and the three adopted definitions in state statute, would remain in force without alteration.

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3. The three-fifths supermajority vote requirement in the guardrail statutes would be severable from the remainder of the statute.

4. Absent the severed supermajority vote provisions and the nullified bond covenant, the remainder of the fiscal statutes would continue to be implemented as currently done by the Office of Fiscal Analysis and the Office of Policy and Management, unless and until these statutes are amended.

5. The priority funding of the rainy day fund and prepayment of pension debt would continue under the status quo, unless and until amended by law.

6. The budget impacts of revising the guardrails will be determined by future actions of lawmakers. All the statutory caps in P.A. 23-1 could be amended by a majority vote except to the extent covered by the constitutional spending cap in article Third, Sec. 18c.

Alex Knopp

7. The General Assembly and governor would be expected to carefully project how their fiscal decisions going forward will impact Wall Street’s credit rating agencies.

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8. The bond lock should be recognized as “null and void” by legislative repeal or by exercising the “escape clause” to avoid unintended consequences.

9. The State Treasurer should seek immediate legislation relieving him of the obligation to insert the bond lock covenant in future bond sales.

10. Assuming that there is at least some consensus of good faith acknowledgement of constitutional flaws in the statutory guardrails, the threshold question of whether any changes should be made will have been definitively answered, allowing everyone to move on. In response, House Speaker Matt Ritter, Senate President Martin Looney and Gov. Ned Lamont might convene an “all parties” negotiation to address post-guardrail changes to the FY 26-27 state budget and to hammer out new flexible fiscal policies to replace the old inflexible statutory guardrails.

The prospects for a successful negotiation seem high despite current bickering because there is ample political and policy consensus that some level of fiscal controls should remain in place. The CT Voices report and the Yale Tobin/Connecticut Project report both propose sensible fiscal revisions, but neither group advocate for eliminating fiscal controls all together. Governor Lamont in particular should take credit for the fact that “guardrails” of some type have now become a permanent part of Connecticut’s fiscal infrastructure because of his insistence.

The General Assembly should now approve what it neglected to do in 2017 or in 2023: adopt a “best practices” approach by establishing a new permanent Fiscal Commission of budget experts, stakeholders, and representatives of municipal, business and nonprofit leaders, to monitor on a regular basis the productivity, responsiveness and efficiency of ongoing fiscal policies. The Commission’s reports should contain fiscal analysis on the authoritative level of the OFA’s Fiscal Accountability Reports and recommendations on the data-driven policy level of the recent guardrail reports from the Yale Tobin Center and CT Voices for Children.

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Consequences for bond purchasers

What might be the legal consequences for bondholders and the state if the bond lock covenant is unconstitutional?

Experienced bond counsel would need to be consulted about extracting the state from these entanglements. The following assurances could minimize if not eliminate any serious risk to the state from a bondholder lawsuit.

First, bondholder investments are sufficiently protected under the conventional bond covenant from the State of Connecticut to pay principal and interest on the bonds, guaranteed by the full faith and credit of the state. The primary security pledge received by the bondholders has not been impaired.

Second, bondholders will still receive extra protection from the risks of the normal state budgeting cycle by the constitutional spending cap which exempts in article Third, Sec. 18b “expenditures for the payment of bonds, notes or other evidences of indebtedness” from the cap.

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Third, the exercise of a public entity’s sovereignty in limited circumstances has been upheld by courts as a defense or justification for post-sale changes to bond covenants. A well-known example excused a municipality’s non-performance with its pledge to dedicate casino revenues to pay bondholder debt service after the city’s approval of construction of a new casino was rejected by a voter referendum. A finding of unconstitutionality would leave the debt service obligation intact even if the bond lock were nullified.

Fourth and most importantly, the General Assembly was never constitutionally authorized under the “anti-delegation legislative rule” to issue the bond lock covenant in the first place. There is no “breach” for damages if the covenant was void from the start and there is no claim for “damage” if the debt service is paid.

Fifth, future assessments by Wall Street’s credit rating agencies will largely depend on the budget policies adopted in the post-guardrail period. No other state has adopted a bond lock covenant. Wall Street has welcomed Connecticut’s fiscal results but has not been clamoring for other states to replicate the bond lock.

Sixth, a final option for the state to extricate itself from the any bond covenant contract disputes without even the appearance of a technical default is for the General Assembly and the governor to exercise the bond covenant’s procedural “escape clause” for each of the remaining fiscal years on the 2024-2028 covenants and not to renew the covenants in 2029 for the optional second five years.

Conclusion and a note of judicial caution

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In this series of opinion essays I have presented a “big picture” analysis of the unconstitutionality of the budget guardrails to stimulate the kind of legal research and discussion that regrettably has been avoided since 2017. As an obvious caveat, these essays were never intended to take the place of a legal brief.

Asking a Connecticut court to declare a state statute unconstitutional can be a daunting task. A 1986 court ruling stated: “It is well settled that a party who challenges a statute on constitutional grounds has no easy burden, for every intendment will be made in favor of constitutionality, and invalidity must be established beyond a reasonable doubt.”

That is why, in the end, it is my hope is that without formal judicial intervention the General Assembly and the governor will find either in these essays or in a legal opinion from the Attorney General or in an advisory opinion from the Legislative Commissioner’s Office enough of a persuasive legal rationale to conclude that the Connecticut Constitution requires a different process to adopt future state budgets, unencumbered by questionable statutory budget guardrails that may be out of date or out of order.

Seeking to have the guardrails recognized as unconstitutional is a weighty matter not to be undertaken frivolously. But continuing to adopt state budgets outside of the bedrock rules enshrined in the state constitution also carries serious risks and is likely to cause damage to trust in government and lead to more factional disunity.

Although the guardrails deserve their share of recognition for addressing the depleted rainy day fund and advancing payments of pension debt, let’s not forget that fiscal performance improved in every state between 2021 and 2023. During that period, 48 states cut taxes, and many built up their rainy day funds. Only Connecticut imposed a bond lock.

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Connecticut does not need to choose between respecting its Constitution and enacting fiscally responsible budgets. It can and should do both. The statutes, guardrails and budgets reviewed in this opinion series are important elements of governing, but in the end the most precious commitment that all state elected officials make is the oath they take to “support” the Connecticut Constitution.



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Connecticut

6 Best Connecticut Towns For A Weekend Trip

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6 Best Connecticut Towns For A Weekend Trip


Known for its captivating coastlines along the breathtaking Long Island Sound, Connecticut has spectacular destinations for unforgettable weekend adventures. Prepare for a dreamy getaway where history, beauty, and culture converge through mesmerizing medieval-style mansions such as the one at Gillette Castle State Park. You can also explore the rich maritime history of Mystic through the Mystic Seaport Museum or experience cascading waterfalls at Kent Falls State Park. So, read on to discover even more about the 6 best Connecticut towns for a weekend trip.

Mystic

Mystic, Connecticut.

From exquisite galleries to eye-catching coastal pathways and endless opportunities for shopping and dining, Mystic is very diverse. Start by diving into America’s seafaring history at the Mystic Seaport Museum. Here, you will find treasures, including four National Historic Landmark vessels and over 500 historic watercraft. Next, meet intriguing creatures at the Mystic Aquarium. This non-profit organization is home to thousands of animals, covering marine mammals, reptiles, invertebrates, and fish.

The Mystic Seaport Museum in Mystic, Connecticut.
The Mystic Seaport Museum in Mystic, Connecticut. Image credit Faina Gurevich via Shutterstock

If you are more of a creative, see rotating exhibitions created by notable regional artists at the Mystic Museum of Art, a place for culture, community, and creativity. Next, find out what unique gifts and souvenirs are available in Olde Mistick Village. This open-air shopping village features a wide range of stores, with over 40 shops and eateries to explore in a beautiful, colonial-style, pet-friendly environment. When you are ready to rest, stay right outside the village at the Holiday Inn Express Mystic. Enjoy on-site amenities like a fitness center, pool, free breakfast, and complimentary coffee in a convenient central location.

Litchfield

Buildings on West Street, Litchfield, Connecticut.
Buildings on West Street, Litchfield, Connecticut. Image credit: Joe Mabel via Wikimedia Commons.

Plan a peaceful, picture-perfect escape surrounded by nature and 18th-century architecture in Litchfield, one of the best Connecticut towns for a weekend trip. Soak in the scenery of Mount Tom State Park as you climb 1,325 feet to the summit, or simply sit back and relax by the pond. Nature lovers can explore the eye-catching trails of the White Memorial Conservation Center. This wonderful nature preserve has a historic regional museum and a 4,000-acre wildlife sanctuary.

Downtown Litchfield, Connecticut.
Downtown Litchfield, Connecticut. Image credit: Joe Mabel via Flickr.com.

After getting your steps in, treat yourself to a dreamy trip to the winery. Taste quality varietals underneath stunning skies or in a rustic tasting room at Sunset Meadow Vineyards, only a few minutes’ drive from The Litchfield Inn. This lovely boutique hotel offers complimentary breakfast, a fitness center, and lush, rolling hills.

Niantic

The Morton House in Niantic, Connecticut.
The Morton House in Niantic, Connecticut. Image credit Dmcoxe via Wikimedia Commons

Find your own piece of Northeast paradise in Niantic, one of Connecticut’s most beautiful small towns. Wander along the Niantic Bay Boardwalk, a 1.1-mile path stretching from Cini Park to Hole-in-the-Wall Beach along Long Island Sound. Go swimming off the sandy shores in the summer, accessible by a short tunnel underneath the railroad tracks. Once you have soaked up the sun, see what treasures you can find in The Book Barn. This Main Street haven features over 350,000 books, along with exciting games, vibrant gardens, and adorable farm animals. After a day of exploring, head to The Niantic Inn. This cozy hotel, located a few minutes east, is known for its excellent location near the shore, shops, and restaurants.

Madison

Blue hour after sunset in Madison, Connecticut.
Blue hour after sunset in Madison, Connecticut.

Book a dreamy getaway to Madison, your typical New England beach town. From picturesque coastlines to pedestrian-friendly pathways with quaint cafes, award-winning bookstores, and charming boutiques, this is one of Connecticut’s best getaway towns. Experience the beauty of Hammonasset Beach State Park, the state’s longest shoreline park. The site includes two miles of sandy beaches along with a peaceful nature preserve. Home to the Meigs Point Nature Center, you can find over 50 species of local wildlife, educational displays, and unbeatable views. After an afternoon of adventures, spend a relaxing evening in Madison Cinemas. This independently owned cinema presents films in 7.1 Surround Sound for a highly immersive experience. Regarding accommodations, Scranton Seahorse Inn is only a two-minute walk away. Stay in a cozy room in the heart of town, where history and renovated comforts combine in a 1833 Greek revival home.

East Haddam

The Goodspeed Opera House with the East Haddam Bridge in East Haddam, Connecticut, over the Connecticut River.
The Goodspeed Opera House with the East Haddam Bridge in East Haddam, Connecticut, over the Connecticut River.

Approximately 45 minutes from Madison, you will find East Haddam, one of the state’s most remarkable yet under-the-radar small towns. Start your weekend at Gillette Castle State Park. Explore the modern medieval stone castle with spectacular views from 200 feet above the Connecticut River. To further immerse yourself in nature, head to Devil’s Hopyard State Park. From cascading waterfalls to wonderful bird-watching and trout fishing opportunities, the park is full of gems. Make sure you visit the Eightmile River, a National Scenic and Wild River designated by the U.S. Forest Service. Capture photos of Chapman Falls, dropping more than 60 feet over the Scotland Schist stone formation. City lovers wanting to explore Main Street should head to the Victorian-era Goodspeed Opera House. Watch a mesmerizing musical from April through December in this architectural wonder. Finally, end the night with a historic stay mixed with modern amenities in The Boardman House Inn. Located right up the street, this luxe bed and breakfast was constructed with Second Empire architecture in 1860, immersing you in a journey back in time.

Kent

St. Andrew's Church, Kent, CT.
St. Andrew’s Church, Kent, CT. By Joe Mabel, CC BY-SA 3.0, Wikipedia.

Unlock the perfect combination of history and nature in Kent, an extraordinary spot in the Litchfield Hills. Famous for its fall foliage, Appalachian hiking trails, and quaint Main Street shops, this New England town offers plenty to do. Begin your adventure in Kent Falls State Park. There, you will see a striking series of waterfalls dropping into the Housatonic River. From there, wander across the Bulls Bridge. Constructed in 1842, this historic treasure is one of the few functional covered bridges remaining in the state. The Connecticut Antique Machinery Museum is another site you must not miss. Its 8-acre museum space boasts unique machinery depicting the area’s rich industrial and agricultural history. If you are looking for distinct accommodations that will truly connect you with the heart of Kent, stay at the Spirit Horse Farm. The charming small family farm offers comfortable lodging in a historic setting that will make for a truly unforgettable escape.

Plan Your Weekend Escape In Connecticut

If you would like to see plenty of diverse attractions in a short period of time, Connecticut is the perfect place to explore. Discover a dreamy mix of natural beauty, maritime history, art, and New England-style architecture in this coastal haven. From the gorgeous galleries and notable museums of Mystic, to the expansive boardwalks of Niantic, and the striking Appalachian trails and outdoor museums of Kent, these are the 6 best Connecticut towns for a weekend trip.

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The Houston Comets are back as the Sun sets on the WNBA’s time in Connecticut, where fans face unfortunate reality

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The Houston Comets are back as the Sun sets on the WNBA’s time in Connecticut, where fans face unfortunate reality


FORT WORTH, Texas — The Houston Comets’ four WNBA championship banners and the jerseys of their icons have a rightful home again. If only it didn’t come at the expense of another.

The news of the Connecticut Sun selling to Houston Rockets owner Tilman Fertitta and relocating to the Lone Star state as the Comets is a zero-sum game, transporting heartache elsewhere.

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Sure, it’s a long-awaited victory for Houston and its fans, who were many and only grew in number as vintage became trendy. This city deserved the return of a team ripped from its clutches at the start of the Great Recession, and despite decent attendance throughout its success.

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Yet, the basketball-crazed state of Connecticut will now feel that same void. It’s hard to overlook that the final report of the sale dropped while 12-time national champion UConn actively extended its winning streak to 53 with a victory in the Sweet 16 here in Fort Worth, Texas. Four hours from Houston.

Hey, the move screamed, look over there instead. The epitome of a Friday night news dump that everyone involved with hoped wouldn’t sting quite so much.



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Are You From a Connecticut Family That Eats Toad in the Hole?

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Are You From a Connecticut Family That Eats Toad in the Hole?


Are you from a Connecticut family that grew up eating Toad in the Hole? If so, you probably know it as a quirky breakfast dish — an egg cooked right in a hole cut out of a slice of bread. Just to be clear, no toads were harmed — I simply couldn’t resist using an actual toad photo. But the story behind the name and the dish is a little stranger than you might think.

The original Toad in the Hole comes from England, where it’s a savory meal of sausages baked in Yorkshire pudding batter. No eggs, no toast, just sausages popping out of golden, fluffy batter — the name supposedly comes from the way the sausages peek out like toads in a pond.

When English families settled in New England, they brought culinary traditions with them, and over time, the dish evolved. In the U.S., particularly in some Connecticut households, Toad in the Hole became the breakfast version we know today: an egg nestled in bread, sometimes cooked in a skillet or baked. It’s a far cry from the original sausages-and-batter dish, but it kept the playful name and sense of whimsy.

Read More: Connecticut Zookeeper Explains the Secret Lives of Skunks 

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What’s fun is that the U.S. version is sometimes called “egg in a basket” or “egg in a hole” in other parts of the country, but in many Connecticut homes, it proudly keeps the Toad in the Hole moniker. For families with multi-generational ties to the state, this little breakfast dish is a taste of history, a nod to old English roots, and a perfect reminder of just how weird and wonderful Connecticut’s food traditions can be.

Before researching this, I’d never heard of it, but you’d better believe I’m making one of these this weekend — both the UK and U.S. versions.

Sources: Wikipedia & Food Science Institute 

The Top 10 Shoplifted Items from Connecticut Target Stores…

Luxury Meets Privacy: Discover Old Greenwich’s Exclusive Peninsula

28 East Point Lane is a luxury address in Old Greenwich, CT that happens to rest on a peninsula. If you have a metric f— ton of money I have good news, It recently hit the market for $12.5 Million. 

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Gallery Credit: Lou Milano

10 Most Dangerous Neighborhoods, in Connecticut’s Highest Crime City

Those of us who live in Connecticut know, this place is NOT what the rest of the country thinks it is. We have folks struggling to get by, we have crime, drugs and very dangerous neighborhoods. Recently, I set out to find the most dangerous city in Connecticut and I got a lot more detail than I bargained for. After determining Hartford was the city with the most violent crime, I was able to find the specific places that are the most dangerous within the city. These are the 10 Most Dangerous Places in Hartford according to the Connecticut Bail Bonds Group.

Gallery Credit: Lou Milano





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