Hartford Business Journal

8 HARTFORDBUSINESS.COM | NOVEMBER 25 2024 Politics & Policy Gov. Ned Lamont sitting in his office inside the state Capitol during a Nov. 13 interview with the Hartford Business Journal. HBJ PHOTO | GREG BORDONARO Balanced Outlook As he prepares for his 7th year as governor, Lamont determined to maintain budget restraints but some legislative Democrats want to at least loosen the spending restrictions, which will require the legislature to save $2.5 billion in estimated tax revenues over the next two fiscal years. House Speaker Matt Ritter (D-Hartford), who supports easing the guardrails, said recently there's a "compromise here that's easy to strike." Lamont, though, continues to support the fiscal restraints, even though he expects to get some push- back from both parties. "I think they've worked," he said. "I mean, I can tell the fiscal conserva- tives this worked because of what we've been able to accomplish (with the balanced budgets and surpluses), and I can tell the progressives it's worked because six straight years in a row we've been able to increase funding for K-through-12 and high- er-ed and child care and housing. So, it's not like it shackles." Lamont is concerned about Medicaid costs, however, calling them the "new cancer in our budget." "Everybody's going into the hospital. The hospitals are filled up," he said. "Our utilization is still very heavy and pharma is still very expensive." As a result, the state's Medicaid program was running a $220 million deficit as of October, according to the governor's budget office. Also on the healthcare front, Lamont said he's supportive of the concept of association health plans, but any bill would need to mandate coverage of benefits required under Obamacare. The business community last year lobbied heavily for such plans, which would allow chambers of commerce and other associations to offer their members health insurance as a combined group to increase their purchasing power and potentially lower costs. The bill was blocked by some progressive Democrats. Economic update The governor also said he believes the state has already provided signif- icant support to address the lack of affordable housing, noting that Connecticut built "more housing last year than we have at any time in the last 10 or 15 years." He also cited the $800 million toward housing included in the last budget. "I don't have to keep upping the ante every year," he said. "Let's make sure I'm putting in the money or putting in the work and it's making a difference." As for the state's economy, Lamont noted that for the first time in his life "we have more jobs than people looking for jobs." He said he believes the transition from President Joe Biden to Trump "will be seamless" for defense contractors like Pratt & Whitney, Sikorsky and Electric Boat. Lamont offered comments on a By David Krechevsky davidk@hartfordbusiness.com A s the Connecticut General Assembly prepares for its 2025 legislative session, Gov. Ned Lamont says he has one overar- ching goal for legislators. "Priority No. 1 is an honestly balanced budget," he said recently. "We didn't have an honestly balanced budget for decades, and we went from boom to bust," Lamont said. "We didn't pay our bills. We stuck a lot on the credit card — that was everything from bonding to pensions — and it was terrible. So, I do not want to go back to those bad days, and I think we've done pretty well with six balanced budgets in a row." The budget was just one topic Lamont discussed in an exclusive interview with Hartford Business Journal. Seated at his desk, dressed casually in pants and a collared shirt with no tie, the governor offered his candid thoughts on issues likely to be raised in the next session. This January, when he will also celebrate his 71st birthday, Lamont will kick off his seventh year in office and the second half of his second term. Asked what he's learned during his tenure, Lamont said he now under- stands the importance of getting out of the Capitol. "I think this building has a perspec- tive, but doesn't necessarily reflect the perspective of the greater state," he said. "Maybe as a first-time governor you're spending all your time inside this building and perhaps not enough time listening around the state." Post-election challenges The 2025 legislative session opens Jan. 8 and will convene amid some notable changes, both in Hartford and Washington, D.C. Former President Donald Trump has regained the White House, while Republicans also took control of the U.S. Senate and retained control of the House of Representatives. Closer to home, Democrats in Connecticut added seats in the General Assembly, giving them a veto-proof majority in each chamber. For Lamont, a moderate Democrat who doesn't always march in lock- step with his party, it could make for a challenging year. That's especially true in regards to the state budget's fiscal guardrails, which include a spending cap, annual limits on bonding and a "volatility adjustment" that requires saving a portion of tax receipts above a specified level. Lawmakers this session must approve a new two-year state budget, NED LAMONT Governor State of Connecticut Education: Bachelor's degree in sociology, Harvard College; MBA, Yale School of Management Age: 70

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