Members of the Connecticut General Assembly convened last Wednesday, February 7 for the second year of their two-year term in the short, three-month legislative session. Governor Ned Lamont delivered his annual State of the State Address, in which he emphasized the need for more affordable housing, early childcare education and support, and paying down the state’s long-term obligations, and presented his FY 2025 recommended budget adjustments.
The Governor’s recommended budget, according to the Office of Fiscal Analysis, proposes to increase net spending by $89.2 million which is 0.3 percent above the adopted budget. Separately, the Governor’s budget reallocates approximately $55.7 million of federal ARPA funds.
In the face of significant pressure to meet funding needs and provide additional tax relief, and despite a budget surplus, the Governor and secretary of the Office of Policy and Management have emphasized the importance of the state remaining within the fiscal guardrails adopted last year and not violating the state’s spending cap. Very little growth is expected in the budget to be adopted by the end of the session in May.
In addition to the state budget, lawmakers will confront several major public policy issues, according to a recent report from the Office of Legislative Research. The legislature is expected to consider several issues affecting the Lumber Dealers Association of Connecticut, including affordable housing and vehicle emission standards.
The legislative session is just getting underway: not all committees have met for an organizational meeting and those that have are introducing concepts to be drafted as bills to be considered in a public hearing.
In the fall, elections will be held in all state legislative districts.
This is a report concerning legislation and public policy LDAC is participating in or monitoring during the 2024 legislative session.
Highway Use Tax
Several proposed bills that would eliminate the highway use tax, including House Bill 5069 and Senate Bill 29, have already been filed by individual lawmakers. The law, beginning Jan. 1, 2023, imposes a highway use tax on carriers operating certain heavy, multi-unit motor vehicles on any state highway; the tax is now due quarterly. While the bills are a positive step for LDAC and industry (and consumers), they are unlikely to be adopted in the current session. So far, none of the bills have been filed by lawmakers in the majority or even from minority leadership. LDAC may still want to weigh in in support of the change in policy.
Vehicle Emissions Standards
The legislature is expected to consider the policy related to the Department of Energy and Environmental Protection’s Proposed Emissions Standards for Cars and Trucks. The regulations, which were announced in July to target cleaner vehicle emissions and require manufacturers to deliver 100% electric vehicles by 2035, were withdrawn by the Governor in November. The regulations were opposed by a number of residents and organizations, including LDAC, which is a member of a coalition of organizations opposed to the regulations.
The Governor and legislative leadership considered a special session in January but lacked sufficient support to adopt an implementation strategy similar to two states that have approved California’s standards with a commitment to assess progress toward establishing the necessary infrastructure before 2035. Senate Republicans late last month presented their plan for ‘A Better Way to a Cleaner and Greener Connecticut’, which would adopt EPA quality standards without banning the sale of gas-powered vehicles and reduce vehicle emissions by expanding existing tax credits to all fuel-efficient vehicles. Also late last month, the Governor called on advocates to lobby lawmakers in favor of phasing out the sale of new gas-powered vehicles. Recent comments from the Speaker of the House indicate some weariness for the policy. If no action is taken, Connecticut will revert to federal EPA standards that aim to have most new cars and some new heavy-duty trucks sold in the U.S. be electric by 2032. LDAC plans to monitor the policy closely, collaborate with the coalition and, if necessary, weigh in.
Affordable Housing
Investments in housing have been a top priority of Governor Lamont. In his address to lawmakers last week, the Governor highlighted affordable housing, noting that the budget doubles the state’s investment in housing – workforce housing, affordable housing, supportive housing, elderly housing, and downtown apartments. The state has “too many people who cannot find a place to live – it is not available, or it is not affordable,” he said. In FY 2024 and FY 2025, $430 million has been authorized in housing projects and programs to the Department of Housing, which is more than double the previous 5 years average. Proposed Senate Bill 6, introduced and co-sponsored by most members of the Senate majority, would increase funding to the affordable housing program administered by the state Department of Housing.
Infrastructure Funding
State Bond Commission Authorizations
The State Bond Commission held a special meeting on December 15, 2023, to release funds for a number of capital improvement and infrastructure projects. According to the meeting minutes, the commission allocated funding for several housing programs and projects, including:
- $59 million for the Department of Housing to finance grants under the Flexible Housing Program for immediate needs in existing housing projects that are of a critical and priority nature to help preserve or restore health and safety conditions, avoid vacancy due to unsafe living conditions, or for activities that lead to health and safety improvements.
- $4 million for the Department of Housing to amend the loan terms to assist with the rehabilitation of Parkside Gables in Stamford, a 69-unit property serving families earning up to 60% area-median income.
- $5 million for the Department of Economic and Community Development to provide a grant to the City of New Haven to support property acquisition, public infrastructure, and housing development as part of the Mill River Municipal Development Plan.
- $5 million for the Department of Housing to allocate to the City of New Haven to establish a community housing land bank and land trust in New Haven, to assist with eliminating blight.
Anti-Business Policies
The Labor Committee has already voted to consider several anti-business policies or is expected to introduce bills concerning noncompete agreements, predictable scheduling, and unemployment compensation for striking workers, among other policies. While the bills have not yet been filed and the text isn’t available, similar bills have been considered in recent legislative sessions.
Last Thursday, Senate Bill 12 was filed in the Labor Committee to implement the Governor’s budget recommendations; it would require employers of all sizes to provide 40 hours of paid sick time. Later that day, the committee voted to introduce its own bill with similar requirements; it will be filed shortly.