Lawmakers prepare for debate on fiscal guardrails, other issues in new legislative session 

Connecticut lawmakers will return to the Capitol Wednesday to kick off the 2025 legislative session.  

The top priority will be crafting a new two-year budget, but lawmakers say priorities range from housing to energy prices to healthcare.  

The legislature has a longer session – January to June – every other year, and that’s when they craft a two-year spending plan.  

This year’s debate is likely to include conversations on whether lawmakers should relax the state’s fiscal guardrails.  

“I certainly hope we’ll be able to come to some agreement on flexibility regarding the fiscal guardrails,” Sen. Martin Looney (D - President Pro Tem) said.  

Looney and other Democrats have voiced a hope of changing the volatility cap, a guardrail that limits the state's ability to spend money from income tax collected from stock market investors and other revenue streams subject to a lot of variance.  

This year’s budget includes $1.4 billion that can’t be spent because of the volatility cap. That money will go into the state’s 'Rainy Day fund' and toward pensions.  

Republicans say they won’t support any changes to the guardrails, noting the legislature is expected to have nearly $1 billion in new revenue available next year already.  

“These are supposed to be laws that govern the way we budget, that govern fiscal responsibility, that maintain fiscal responsibility,” Sen. Stephen Harding (R - Minority Leader).  

Democrats and Republicans both said budget priorities including funding for early childhood education, special education and increasing the Medicare reimbursement.  

One question looming over budget talks is what will happen under President-Elect Donald Trump.  

The current federal budget only lasts until mid-March. Democrats and Republicans are both concerned about cuts to Medicare, education aid and other areas.

“There are more unknowns than usual in this budget process,” Looney said.  

Outside of the budget, Democrats said priorities include affordable housing, higher education and healthcare.  

“We hear so many times that prior authorization for physicians in getting the care to their patients,” Looney said.  

Republicans want to focus on energy prices. They also have concerns about Connecticut’s Trust act, which says state agencies are not supposed to cooperate with the federal government on deportation.  

The act does have exemptions for undocumented immigrants convicted of Class A or Class B felonies.  

“The state of Connecticut needs to revise its laws to no longer be a sanctuary state and to cooperate with the federal authorities to make our communities safer,” Rep. Vincent Candelora (R - Minority Leader) said.  

Lawmakers will also need to take a look at Connecticut’s election laws after voters in November approved removing restrictions on who qualifies for an absentee ballot.  

“We now have to devise, sort of, a new system for voting,” Rep. Matt Ritter (D - Speaker) said.  

Ritter and Candelora both said the discussion around no-fault absentee ballots will allow for a broader discussion about the state’s voting system.