House Finds Agreement on Free Lunches & Financial Guardrails

The House of Representatives recently met to act on emergency certified legislation extending the state-wide school free lunch program through the remainder of the school year and re-instituting fiscal guardrails prior to the start of budget negotiations. The unanimous vote on the House floor in support of the bill shows that the legislature can put forth quality public policy when it works in a bipartisan manner.

As a result of the successful passage of the legislation in both chambers,  funding for the Free Meals for Students program will be provided by the state. There was consensus among lawmakers that free lunch provides benefits to many students and families that are still coping with the lingering effects of the pandemic. The goal is to provide a healthy lunch to students so they can focus on their academics.

In addition to preserving the free lunch program, legislators also found agreement on fiscal guardrails before the state budget process gets underway. In 2017, a bipartisan budget was passed with an emphasis on Connecticut paying down its debt obligations while capping spending and borrowing. Consequently, guardrails were implemented to keep the state coffers in a consistent state of solvency. Those guardrails were set to expire at the end of the current fiscal year, which is why the legislature took swift action to extend them for another 5 years.

These fiscal parameters helped the state remain fiscally stable through the pandemic, created the unprecedented Rainy Day Fund (reserve account) of more than $3 billion, and a projected future deposit after the 2023 fiscal year of an additional $3 billion to the budget reserve.  The successful legislation extends the bond-lock covenants issued by the Treasurer to perspective investors, promising that the state will provide fiscal constraint in its spending and restricts the legislature from circumventing the caps. Additionally, it preserves caps that help the state establish reserves for future deficits and help pay down the state’s pension obligations.

Will there be agreement on what programs and services are prioritized within the final state budget when it is presented to the General Assembly for a vote? That question is yet to be answered. But, we agree the commitment these budgeting boundaries by both political parties is  a step in the right direction. Our job is far from over.  We remain committed to advocating for immediate tax relief by reducing the state income tax, eliminating the meals tax, and growing the economy by creating incentives for employers to invest and diversify their workforce.

The legacy of the 2017 bipartisan budget continues to benefit the state. There is a pathway that a bipartisan budget document is created, but we must continue to focus on the goal of an affordable Connecticut.