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75% of Americans oppose US attempting to take control of Greenland, CNN poll finds; Canada, China slash EV, canola tariffs in reset of ties; Trump administration announces health plan concept; Congress considers bill to make cars with electronic door handles safer; Michigan Planned Parenthood closures fuel ongoing debate.

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Trump threatens to invoke the Insurrection Act, as Minnesotans protest ICE. A Homeland Security official announced a run for Congress and federal courts move to keep the administration from getting voter data from two blue states.

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Rural Appalachia is being eyed for massive AI centers, but locals are pushing back, some farmers say government payments meant to ease tariff burdens won't cover their losses and rural communities explore novel ways to support home-based childcare.

CT budget reserve could bolster much-needed social programs

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Monday, August 5, 2024   

Connecticut groups want Gov. Ned Lamont to use some of the state's budget reserve to fund social programs.

The state has amassed a more than $4 billion budget reserve in recent years.

But the governor is holding onto the money, saying the extra funds will be needed to bail the state out of any future economic trouble.

Norma Martinez-HoSang - director of the nonprofit Connecticut For All - said she understands that, but said the money could make a real difference.

"In Connecticut, we saw many families suffer from being underinsured or not insured at all," said Martinez-HoSang. "There've been a lot of people not able to afford their rent and even evictions. Our schools have been using ARPA funds since the pandemic - and now, those are ending at the end of the year."

Polls show using these funds to help shore up basic safety-net programs is widely popular with Connecticut voters.

Sixty-three percent say they want the budget reserves to be used for education, health and human services, and other priorities.

Only 8% want all surplus funding to be spent on paying down state employee pension debt. A 2024 report finds overall statewide pension debt is close to $37 billion.

Along with the budget reserve, Martinez-HoSang noted that policymakers could take other steps to make Connecticut life more affordable. One suggestion is to fix the state's 'regressive' tax system.

Studies show low and middle-income earners pay a higher percentage of their income in taxes than wealthier residents.

Martinez-HoSang said the state's fiscal guardrails are "out of touch" with people's needs.

"We should find a way to work around them in 2025 - and get rid of them in a few years when they're up again, to be reestablished or to get rid of them," said Martinez-HoSang. "So, those fiscal guardrails are in the way of real investments that our community needs."

Other legislation to handle this issue should come up when the General Assembly reconvenes next year.

Martinez-HoSang said this should involve addressing the state's volatility cap.

This creates a limit on the amount of revenue used to balance the budget. While it's supposed to capture those funds, it has diverted nearly 10 billion dollars in recent years, which can be spent elsewhere.




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