Connecticut's budget plan underfunds employee health care

Connecticut Governor Ned Lamont's new budget plan for the next two years has a significant shortfall of nearly $230 million for employee health care. This gap has raised concerns from lawmakers across party lines, suggesting that the budget was unbalanced from its inception. The state comptroller's office reported this shortfall last week, leading to demands from legislators to restore the necessary funds. However, doing so would push Lamont’s $55.2 billion budget over the state's constitutional spending cap for the next fiscal year. The budget issues have created tension between the governor and the state legislature. Senator Cathy Osten, a Democrat, expressed the need for better communication about health care costs, while Republican Representative Tammy Nuccio criticized the funding gap, calling it a disservice to taxpayers. Lamont's spokesman defended the budget as a reasonable estimate for health care costs. The comptroller, Sean Scanlon, recommended that legislators increase funding by $112 million next year and $116 million for 2026-2027 to meet health care obligations. He noted that his office had informed the administration about rising health care costs well before Lamont's budget was released. Connecticut is experiencing increasing demand for medical services, particularly among retirees. The existing contract with Aetna for Medicare Advantage is set to expire, which might lead to higher costs. Scanlon is optimistic that costs can be reduced through various strategies before the budget is finalized in June. Tensions continue to rise as Lamont has announced budget cuts in several areas, including higher education. Despite claims of strict spending control, critics argue that the budget system is flawed, restricting funding for essential services in favor of building surpluses. As the deadline for budget approval approaches, the governor's margin for staying under the spending cap remains tight, and any additional health care funding could easily push the budget over the limit.