Connecticut has a spending problem.
The legislative session has begun in Hartford and the Democrats with their supermajority have already proposed three different tax increases (HB 5133-increase income tax rate, SB 101a “Mansion” tax and SB 104-capital gains surcharge). While these taxes may be targeted initially at Lower Fairfield County, it is only a matter of time before they are expanded to include more state residents. History repeats itself. When I first moved to Connecticut there was no state income tax, but Democrat spending has changed that.
Governor Lamont’s proposed FY 2027 budget grows spending by 5.7%. One of the biggest expense items is state employee compensation which, conservatively, represents over a third of the prior year’s budget. There are several aspects to this expense category to understand:
• The Governor has already given state workers six consecutive wage increases and has said he will award a seventh.
• State employee average salaries have risen by approximately 33% during the Governor’s tenure which is well above both private sector wage growth and the inflation rate over the period. Including average yearly benefits, Connecticut’s total annual compensation ranks among the highest state workforces in the country.
• When salaries rise, so do pension costs. As of the beginning of the current fiscal year, Connecticut’s state employees’ actuarial gross pension liability had risen almost $10 billion since Lamont took office to a record high $43.6 billion.
The consequences also expand beyond state government. Although state labor agreements do not legally bind municipalities, they strongly influence local negotiations. Binding arbitration frequently reinforces this pattern. When state compensation rises, towns face intense pressure to follow, regardless of local fiscal capacity.
I highlight state employee compensation given it is such a significant percentage of the budget. The focus should be on cutting spending, not raising taxes. People should be contacting their legislative representatives and the Governor to voice their opinions. The election in November needs to be a referendum on the Democrat’s exorbitant spending levels.
Jerry Cincotta
Former Chairman Greenwich RTC
