Connecticut is navigating an unfortunate paradox as Governor Ned Lamont enacts mid-year budget cuts despite the state’s projected $1.6 billion surplus. These cuts, targeting state agencies and public colleges, come in response to a projected $394 million overrun in expenses, driven by Medicaid costs and about $200M in built-in lapses. While Lamont justifies the decision as necessary fiscal caution, it has sparked concern among union leaders, educators, and some legislators who understand that these reductions are counterproductive in the face of a surplus.

In a story covered by Keith Phaneuf in the CT Mirror on November 15th, “Lamont moves to tighten CT spending despite projected surplus”, CSEA President Travis Woodward sharply criticized the approach, highlighting that such budget cuts undermine vital public services and threaten the stability of the workforce. “How does it make sense to make cuts in times of great surplus?” added Travis Woodward, President of CSEA SEIU Local 2001, the union that represents state transportation engineers and planners. “We’ve experienced difficult financial times in the past. Hiring freezes and ‘efficiency’ cuts have been necessary — but these are not one of those times.”

Connecticut’s adherence to strict budget controls, including spending and revenue caps put in place in 2017, is impeding the state’s ability to address urgent needs effectively. These controls were designed to build reserves and pay down pension liabilities, which they have done successfully. However, as Woodward and others point out, maintaining these controls at the expense of public services and investment will do more harm than good in the long run.

The impact on public colleges is particularly troubling, as institutions have already been stretched thin by years of funding constraints. Reducing resources further could erode the quality of education, limit access for students, and compromise the state’s long-term economic competitiveness by weakening the workforce pipeline. State agencies, facing similar financial pressures, risk losing their capacity to deliver essential services effectively, which impacts everyone, from working families to the state’s most vulnerable populations.

Lawmakers and union representatives are advocating for a reassessment of the 2017 fiscal “guardrails,” or what we call, the roadblocks, which have served their purpose but now limit the state’s ability to make strategic investments. This call to action is underpinned by the recognition that today’s surplus presents an opportunity to strengthen, not shrink, public support systems. In a state with clear economic disparities and rising costs of living, investing in public infrastructure, healthcare, and education is critical to addressing systemic challenges and ensuring a fairer distribution of resources.

The path forward, as Woodward and other labor advocates suggest, lies in balancing fiscal responsibility with the urgent need for strategic reinvestment in Connecticut’s people and public services. Without such measures, budget cuts in the shadow of a surplus threaten to undermine years of progress and stability. As the legislative session approaches, the call for a shift from austerity measures to proactive public investment is louder than ever. It is a call that union members, educators, and advocates must echo to ensure that Connecticut’s policies align with the well-being and prosperity of all its residents.