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March 16, 2021

Lamont optimistic about economic bounce back; pledges no tax hikes on biz

Gov. Ned Lamont.

With billions of dollars in federal stimulus funds set to flow into Connecticut and a ramped up vaccination timetable that could reduce COVID-19 infection rates, employers can count on two to three years of stable and predictable state budgets with no broad-based tax hikes, Gov. Ned Lamont pledged on Tuesday.

Lamont, speaking to members of the Connecticut Business & Industry Association, said the approximately $10 billion earmarked for state government and residents in the $1.9 trillion stimulus bill President Joe Biden signed into law last week will support families in need, including more than 149,000 currently unemployed workers (a number that has more than doubled from a year ago), and bolster daycare programs to help more residents return to work.

The money comes in the form of $1,400 direct payments, $300 weekly unemployment subsidies, with nearly $4 billion in grants to state government and schools.

“I think our economy is like a coiled spring,” Lamont told attendees of CBIA’s virtual Connecticut Business Day event. “I think it could snap back and snap back pretty quickly over the course of the next three [to] six months.”

Lamont believes the stimulus also reduces pressure in the legislature to increase taxes this session, including through the form of a proposed statewide property tax on homes worth more than $430,000.

The governor continues to oppose that proposal, arguing it would hamper the state’s road to recovery from the pandemic and that stimulus funds funneled through to cities and towns in the form of municipal aid will help hold down local property tax rates.

“I don’t support it, I don’t think it’s going anywhere and I don’t think we need it,” he said.

His remarks came just days ahead of a further easing of restrictions on offices, restaurants and many other businesses, which will be allowed to return to full capacity starting Friday.

And on Monday, Lamont announced the state is tentatively accelerating its vaccine rollout, with younger adults (age 16-34) becoming eligible for their shots by May 3, more than a month earlier than previously planned.

He said residents should continue to wear masks when in close company, and that workplaces should remain cautious.

“My biggest worry now is the variant that's coming through New York City,” he said.

Asked by CBIA CEO Chris DiPentima how he was feeling about the state’s fight against the pandemic, Lamont replied “we’re in the ninth inning.”

“I’m a baseball fan, I know a lot of games are won and lost in the ninth inning...but if we stick to our strategy I think you’re going to find June’s a pretty nice month,” he said.

While Lamont is feeling confident about the state’s pandemic recovery and near-term budget picture, he said transportation funding remains a challenge.

He backed several highway tolling proposals in 2019 that failed, and he is now hoping that Congress produces a transportation infrastructure bill.

Nearly a year ago, CBIA came out in opposition to Lamont’s tolling plan. 

On Tuesday, Lamont asked the business group to support his push for Connecticut to join an emissions cap and trade program called Transportation Climate Initiative, which would raise an estimated $90 million in the first year through the sale of allowance on emissions in order to pay for public transportation and electric vehicle infrastructure.

It’s assumed that TCI would lead to higher gasoline prices at the pump.

“That’s my one ask, if you can find ways to support that,” Lamont told CBIA members. 
 

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