Progress Thanks to Bipartisan Budget, Not Gov. Lamont’s Damaging Policies

Fasano Statement re: Treasurer’s Bond Sale

Senate Republican Leader Len Fasano (R-North Haven) released the following statement in response to a recent bond sale announced by the Treasurer Shawn Wooden and applauded by Gov. Lamont Friday afternoon. Gov. Lamont credited his budget enacted last month, as well as increasing the minimum wage and implementing a state run paid family medical leave payroll deduction.

“We can all agree it is positive news that Connecticut obtained a lower interest rate in our most recent bond sale. However, if we want the positive news to continue, we need to be honest about what brought us to this point, and what policies could undo the progress we have made.

“Contrary to Gov. Lamont’s misleading Friday press release, his recently approved budget enacted just last month and many of the policies passed this year are not responsible for the state’s surplus or healthy rainy day fund, which the treasurer credits as boosting the state’s position with investors. Those positive changes are the result of the bipartisan budget passed two years ago that avoided tax increases and got spending under control. It was this historic bipartisan budget that enacted strong, enforceable caps on borrowing and spending and volatile revenue streams. In fact, these caps were heavily emphasized by OPM in the March presentation to rating agencies as a way to ensure ‘the highest level of attention is given to the public’s financial resources.’ It was also the bipartisan budget that bolstered the rainy day fund and put protections in place to guard those funds. It was the bipartisan budget that marked an important shift for our state that has led to higher than projected revenue and slowly began to rebuild confidence in Connecticut.

“Despite the bipartisan progress, Gov. Lamont chose to exclude Republicans from his budget and policy discussions this year. The resulting one-sided policies move Connecticut in the opposite direction and return the state to the Malloy era of instability. Gov. Lamont’s budget increases taxes by nearly $2 billion, a strategy that has historically led to decline not growth. It creates new unaffordable state programs at a time when Connecticut cannot even deliver on the promises it has already made. It is filled with pork and political handouts. It moves programs outside of the spending cap, circumventing this important protection. It relies on savings that have yet to be defined, achieved or approved. And, Gov. Lamont is already faltering on his ‘debt diet’ promise, agreeing to give Democrats hundreds of millions of dollars more in borrowing for pet projects, not core needs. It is also misleading to suggest that a minimum wage increase and forced payroll deduction for a state run paid family medical leave program are responsible for this bond sale. These policies will put jobs and economic growth in jeopardy and take more out of people’s paychecks. They are not policies that promote growth.

“I appreciate the Governor’s desire to celebrate good news. But it’s disingenuous to take credit for the progress that his own policies now threaten.”