Connecticut

Borrowing for transportation on Lamont’s chopping block

Published

3 months ago

December 8, 2025

Borrowing for transportation on Lamont’s chopping block

An ongoing surge in state borrowing to rebuild Connecticut’s aging transportation infrastructure must be rolled back, Gov. Ned Lamont’s administration projects, because of stagnant fuel and sales tax revenues.

But business leaders and a key legislator insist Connecticut has other options to maintain expanded financing for highway, bridge and rail upgrades, including scaling back one of the governor’s favorite programs: an aggressive effort to pay down pension debt.

And while Lamont downplayed the revenue challenges last week, saying the impact wouldn’t be felt for several more years, his budget staff projected borrowing levels to be reduced starting in the next fiscal year, which begins July 1.

Just 12 months after the Lamont administration reported that Connecticut was ready to increase a key element of its transportation construction budget by 40%, from $1 billion to $1.4 billion, by 2028, a new forecast held that three-quarters of that planned growth is unaffordable under the current system.

That $400 million in new borrowing anticipated for the 2026-27 and 2027-28 fiscal years should be stalled, according to recommendations in the Fiscal Accountability Report issued Nov. 20 by the Office of Policy and Management, Lamont’s chief budget and planning agency.

Reversing plans to invest hundreds of millions in infrastructure work will have a chilling effect on industry hiring plans, said Donald Shubert, president of the Connecticut Construction Industry Association.

“The minute they see any kind of uncertainty, or the minute they get any clue things are slowing down, they pull back,” Shubert told the Connecticut Mirror. “We pull back and that slows the economic activity or the economic benefits — immediately.”

The Connecticut Business and Industry Association’s vice president for public policy, Chris Davis, said that “any business that’s on the fence” about hiring or otherwise expanding, “they need that [state funding] stability to make those types of investments.”

Twelve months ago, in the 2024-25 fiscal year, while Connecticut was borrowing $1 billion for its transportation rebuild, Lamont’s budget staff said that should grow to $1.3 billion in 2025-26, $1.4 billion in 2026-27, and then remain at that level through at least 2029 – a prediction that excited industry and construction trade leaders.

Now the administration wants to stick with $1.3 billion in borrowing for 2025-26, but drop to $1.2 billion in 2026-27, $1.1 billion in 2027-28, and remain there through 2030. And given inflation in the construction industry, $1.1 billion in the late 2020s would reflect little increase, if any, beyond the $1 billion Connecticut borrowed last fiscal year.

Borrowing through bond sales, coupled with matching federal grants, are the two ways Connecticut pays for the overwhelming bulk of its transportation construction projects.

Slowing revenue growth is a solvable problem

So why does Lamont now expect to forego most of that funding growth he envisioned just one year ago?

The administration points to the $2.3 billion Special Transportation Fund, which represents 8% of the overall state budget, and covers the principal and interest payments on infrastructure projects, as well as operating expenses for the Transportation and Motor Vehicles departments.

Twelve months ago, Lamont’s budget office expected annual tax revenues supporting the fund to grow almost 4.5%, or $84 million, by 2028. Now they say those sources — two fuel levies, a portion of sales tax receipts, and a highway mileage fee on most large trucks — will effectively remain flat, growing by less than $6 million over the next three years.

The administration projects this sluggish revenue growth, coupled with rising costs, will push the STF into insolvency by 2029. But this is common outcome when projecting a state program’s finances out four or five years into the future, at which point inflation normally outpaces revenue growth.

Still, learning $84 million in expected extra tax receipts by 2028 largely won’t happen is problematic.

Tens of millions of extra dollars for annual debt service payments would allow for hundreds of millions of dollars in additional yearly borrowing for construction work. That’s because the state pays off various projects across 15 or 20 years.

But compensating for losing roughly $80 million in expected revenue growth also is far from unsolvable.

And some of the first solutions that might come to mind are untenable or unnecessary.

Lamont would not need the electronic highway tolls he sought in 2019 and 2020, nor the $600 million they would generate annually, far more than needed to fill an $80 million gap.

And given that both the governor’s office and all legislators are up for reelection next November, any hike in fuel or sales taxes — which would raise far less than tolls but still enough to cover the gap — also is likely off the table.

But there are still more options.

Will Lamont ease budget controls to grow construction work?

The overall state budget’s General Fund, which covers about 90% of all operating expenses, has been sharing some of its resources with the transportation fund since the late 1990s. The last major change occurred in 2015 when legislators and then-Gov. Dannel P. Malloy assigned about 1/13^th of annual sales tax receipts, which currently exceed $5.2 billion — to the STF.

And the General Fund has generated unprecedented surpluses, averaging more than $1.8 billion or 8% to 9% of the fund, since 2017, thanks to aggressive budget caps installed at that time that force big savings.

Most of those unspent dollars, about $10 billion in total since 2020, have been used to reduce the massive pension debt Connecticut amassed across seven decades prior to 2011. And that’s in addition to the more than $3 billion in mandatory pension contributions Connecticut makes annually.

Lamont, a fiscal moderate, has been reluctant to scale back that savings effort, though, given Connecticut still owes more than $33 billion in this area. His critics, including many of his fellow Democrats in the General Assembly, say this effort is too aggressive and is draining funds from education, health care, municipal aid and other core programs.

They also note the governor has proposed saving less, himself, on a few occasions.

He signed big state tax cuts, which take hundreds of millions annually away from surpluses, in 2022 and 2023, just before and after he successfully ran for a second four-year term. He also proposed and won legislative approval last year for a new endowment to bolster affordable child care. That last initiative took $300 million from last year’s General Fund surplus and is expected to collect tens or hundreds of millions from future surpluses indefinitely.

Sen. Christine Cohen, D-Guilford, co-chairwoman of the legislature’s Transportation Committee, said Connecticut should not abandon what amounts to a huge planned investment in new construction jobs and in the state’s economy.

“If we really do something like that, we’re not looking at the big picture,” she said, adding that by rebuilding the state’s aging highways, bridges and rail lines, “we create a vibrant economic picture for our state.”

Cohen also praised Connecticut’s savings habits in recent years and said the state should continue to whittle down its pension debt.

But “I also recognize times change,” she added, “and sometimes minor adjustments are needed.”

Shubert’s association has asserted for years that Connecticut should be borrowing more than $1.5 billion annually to rebuild a transportation network that is one of the nation’s oldest.

According to the American Road & Transportation Builders Association, Connecticut ranks 35^th in the nation, 1^st being the worst, in terms of the share of its highway bridges considered “structurally deficient.” But when it comes to the percentage of bridge area that falls into this category, Connecticut ranks in the worst 15 states, according to the association.

Being “structurally deficient” doesn’t mean the bridge is functionally obsolete but at least one key component, such as a deck or culverts, is rated in “poor” or worse condition. And though not necessarily unsafe, the bridge requires significant repair or monitoring.

Lamont’s budget spokesman, Chris Collibee, declined to say what changes the governor might recommend when he proposes his next budget to the General Assembly on Feb. 4 but added “We expect considerable discussion around this [transportation] question in the coming months.”

Lamont has pressed lawmakers in recent years to consider cutbacks to public transit programs, including higher rail and bus fares to reduce the need for state subsidies. This also could help offset sluggish revenue growth and make more borrowing for transportation construction possible.

But Cohen was skeptical the Democratic-controlled General Assembly would look to tighten belts further in this area.

“I certainly hope not,” she said. “I want to see more people on public transportation and that means putting investments there.”

Governor downplays transportation funding challenges

The governor downplayed the transportation funding challenges when discussing them with reporters last week.

Federal transportation funding has been on the rise since 2021, when President Joe Biden and Congress enacted an aggressive $1.2 trillion transportation infrastructure program, Lamont said, adding that “2030 is a long way away. A lot can change.”

But President Donald Trump already rolled back some of that infrastructure funding in July when he signed an omnibus federal spending and tax measure.

Trump also has told states he intends to link future federal transportation funding, “to the maximum extent permitted by law,” to local compliance with federal policies on vaccines and immigration enforcement — issues on which many Connecticut officials and the president disagree.

State Department of Transportation Commissioner Garrett Eucalitto said the transportation fund revenues and changes at the federal level do present challenges to Connecticut’s construction program.

But the department also has adjusted its capital program to ease demand for more state investments “without compromising the long-term health of our transportation system. [The department] will also continue seeking competitive federal grant opportunities.”

The DOT has more than 650 active infrastructure projects, Eucalitto said, adding “We will continue to invest strategically in aging infrastructure … directing funds where they deliver the greatest benefit to Connecticut residents, communities and businesses.”

Keith R. Brothers, president of the Connecticut Building Trades Council, said that since Lamont took office in 2019, a robust 90% of his organization’s members in transportation construction-related trades have been employed.

“I have all the confidence in the world,” Brothers added, “that Gov. Lamont is going to keep us working.”

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Connecticut

CT Agency Picked To Lead Federal Career Training Grant Expansion

Published

4 hours ago

March 21, 2026

Press Room

CT Agency Picked To Lead Federal Career Training Grant Expansion

Federal bill H.R. 1 enacted an expansion of Pell Grants to include short-term, career-focused training programs. These Workforce Pell Grants offer need-based aid to low-income students for programs ranging from eight to 15 weeks and comprising 150 to 599 clock hours of instruction.

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Connecticut

SCORE Events And Webinars For Western Connecticut

Published

1 day ago

March 20, 2026

Press Room

SCORE Events And Webinars For Western Connecticut

Published: Mar 20, 2026 7:00 am

SCORE, or Service Corps of Retired Executives, is a national nonprofit organization that offers free and confidential business mentoring services to small business owners. There are local divisions of SCORE, as well as a national level, that regularly host events, workshops, and webinars to assist small business owners with growing their business. SCORE of Western Connecticut is hosting a lot of events in this last week of March, into April, and beyond.

On March 23 at Easton Public Library, 691 Morehouse Road, Easton, SCORE of Western Connecticut will host “Start Your Business Here — Business Planning and Goals.” This event will help business owners be specific and clear on their goals for business and personal life, provide instruction on building a step-by-step action plan to achieve those goals, and work on confidently communicating the business idea to others. Presenters Joe Ziskin and Joe McCaffrey will lead this workshop. Ziskin is a strategy and business development advisor and an “entrepreneur in residence” at University of Bridgeport’s Innovation Center. McCaffrey is a business advisor with Community Investment Corporation, a certified business mentor, and subject matter expert in commercial real estate, small business strategic planning, financial management, and capital sources with Fairfield Country SCORE. Registration is requested. Interested parties can register at score.org/westernconnecticut by clicking on “Workshops and Webinars” and registering for “Start Your Business Here.”

On March 25, noon, an online webinar will take place. “Resources for Veterans Starting a Business” will empower veterans with a wide range of national programs and support systems designed specifically to help vets launch and grow businesses. Registration is required for online access. Registration can be completed by taking the same steps as above, but searching for “Resources for Veterans Starting a Business” instead.

There are several other events at the end of March, like “Is Your Business Positioned for Success? Diagnostic Business Readiness Scorecard” on March 25, 6 pm, at Norwalk Library, 1 Belden Avenue, Norwalk; “Creating Effective Surveys for Nonprofits” on March 26 online, noon; and “Developing Financial Projections for Your New Small Business” also on March 26, online, 6 pm for $10.

On April 2, 6 pm, at Wilton Library, 137 Old Ridgefield Road, Wilton, “Using LinkedIn to Grow Your Business” will take place. Presenter Lorraine Duncan will walk attendees through making LinkedIn profiles “client attractive,” making the time spent on LinkedIn manageable for each person, learning how to reach out to target markets, and applying growth hacking strategies. Duncan has over 30 years in business marketing and consulting experience. She runs her own digital marketing agency, Biz Gone Social, where she advises small businesses on how to utilize social media in their marketing and guides them to online marketing solutions. Additionally, she does the social media management for them. Registration is requested, and can be completed by visiting score.org/westernconnecticut, clicking on “Workshops and Webinars,” and registering for “Using LinkedIn to Grow Your Business.”

April has several events for small business owners, too. On April 6, SCORE is back at Easton Public Library, 6 pm, for “Start Your Business Here — Forming and Launching a Business and Key Technologies.” SCORE will also host an event at Trumbull Library, 33 Quality Street, Trumbull, 6 pm, for “Effectively Promoting Your Business in 30 Seconds (or less).”

For an entire list of Western Connecticut SCORE webinars, events, and workshops, go to score.org/westernconnecticut and check out the “Workshops and Webinars” tab.

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Connecticut

Gov. Lamont pushes gas tax amid tepid response from Connecticut lawmakers

Published

2 days ago

March 19, 2026

Press Room

Gov. Lamont pushes gas tax amid tepid response from Connecticut lawmakers

Gov. Ned Lamont continues to push for a gas tax holiday, even though the proposal appears to have little momentum in the legislature.

Lamont (D-Connecticut) first floated the idea during a press conference on March 10, saying it could help drivers facing rising gas prices amid the ongoing war in Iran.

He told reporters at the Capitol on Thursday that he remains keen on the idea.

“I’ve got 500 million (dollars) I can help people with, and I say sooner rather than later,” Lamont said.

A holiday would pause the 25-cent-per-gallon tax on gasoline and the 49-cent-per-gallon tax on diesel.

The average gas price in Connecticut on Thursday was $3.74, according to AAA, up from $3 per gallon a year ago.

Lawmakers were receptive to the idea when it was first floated, but on Thursday, they said it was part of broader budget talks.

“We’ll see how that works out in the budget,” Sen. Bob Duff (D-Majority Leader) said. “We’ll see how that works in the next few weeks.”

Duff and his Senate Democratic colleagues have proposed a package that includes more sales tax exemptions, a higher property tax credit, and additional tax breaks for renters and low-income families.

Senate Republicans made a similar pitch in a letter to Lamont on Wednesday, using the proposal as an invitation to talk about their call to use $1.6 billion in budget surplus funds to pay for tax cuts.

The estimated average tax cuts of $1,500 per person match what Sen. Ryan Fazio (R-Greenwich) has proposed on the campaign trail.

“It is possible, and not very difficult, to pay for tax relief in the long run if you reduce the growth of spending in the state budget,” Fazio said.

Senate Republicans have suggested budget cuts in future years could help make their tax cut permanent.

Lamont on Thursday reiterated his desire for a vote on the gas tax soon. He noted the House and Senate are set to vote next week on some judicial nominations.

“So there’s certainly a way to vote on it if the leaders want to vote on it,” Lamont said.

Lamont’s budget proposal includes setting aside $500 million in surplus funds to offer a one-time $200 tax rebate to most people, but he has since suggested the state could draw from that same fund to offset revenue lost by a gas tax holiday.

He repeated his concerns Thursday about other tax relief proposals, mainly those he questions the sustainability of.

The state is looking at a $1.6 billion surplus this year in tax revenues from certain unpredictable streams, including income tax from investors.

A volatility cap limits how much the state can spend from those streams, leading to this year’s surplus. Unspent money goes into the Rainy Day Fund and toward pension debt.

Senate Democrats and Republicans have both targeted that same surplus to pay for their tax relief plans.

House Democrats, meanwhile, suggested the state could use some of Lamont’s proposed $500 million pool to increase education aid.

“Everybody says I want something structural and long-term,” Lamont said Thursday. “That means structural deficits that are long-term. I don’t want that to happen.”

The state is in the middle of a two-year budget, but the legislature typically makes changes to that second year.

The legislature’s Finance, Revenue and Bonding Committee has until April 1 to present and propose tax changes, while the Appropriations Committee’s deadline to approve a spending plan is the following day.

If lawmakers choose to present a plan that differs from Lamont’s, the two sides will likely negotiate a compromise before the legislature votes.

Those talks typically go until late in the session, which ends May 6 this year. If a gas tax holiday is part of the budget plan, it may not take effect until late spring or early summer.

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