Lamont Unveils $55.2B Budget Plan: Here's What You Need To Know

HARTFORD, CT — Gov. Ned Lamont on Wednesday presented a $55.2 billion biennial budget plan which would increase spending by roughly $1 billion each year.

Lamont presented his proposal during his 2026-27 biennial budget address before the General Assembly. Lawmakers will consider the plan during the legislative session.

Under the plan, the budget would rise to about $27 billion in the next fiscal year, then to about $28.2 billion the following year.

“Our proposed budget is our best effort to stay true to our Connecticut values while continuing to focus on affordability and opportunity for all,” Lamont said.

Lamont proposes to increase the property tax credit to $350, up $50 from last year.

“We are trying to help our mayors and first selectmen hold the line on property taxes,” Lamont said.

He said his budget plan would increase total municipal aid by $230 million over the biennium.

Lamont aims to reduce the cost of childcare for families to help parents get back to work.

He proposes a new Universal Preschool Endowment, aimed at making pre-K and early childhood education more affordable. He said $300 million from the fiscal ’25 surplus would seed the fund. The budget plan has an additional $30 million next year and $60 million in ’27. The goal, he said, is to provide no-cost pre-K and preschool spaces to families earning up to $100,000.

Lamont said his spending plan proposes an additional $160 million in funding for schools.

He is proposing a $14 million incentive grant for school districts to provide the highest quality special education programming in-district, as out-of-district placements can be more costly. Lamont’s fiscal ’27 budget includes an additional $40 million to help subsidize support for special education students.

The capital budget plan includes $500 million for new schools, the biggest increase in years, according to Lamont. It will help fund projects in communities such as Torrington, Trumbull, Thompson and New Britain.

As for business, Lamont’s budget plan would increase the biotech research and development tax credit from 65% to 90%. It would eliminate the capital stock tax so startups with no profits can raise capital without getting taxed on it, he added.

Lamont plans to end licensing fees for various occupations, such as nurses, dental hygienists, therapists, electricians, plumbers, HVAC, sheet metal workers and teachers.

The budget proposal would also continue a $400 million investment per year in housing – workforce, affordable, supportive, and multi-family.

“People want to be in Connecticut, move to Connecticut, and the only thing slowing us down is a lack of housing,” Lamont said.

The budget plan includes an additional $250,000 to each of the state’s regional government councils, with an aim of having municipalities share services to reduce costs, and therefore, reduce property taxes, Lamont said.

“It’s great having 169 towns, but that doesn’t mean we need 169 building assessors or 169 purchasing agents,” Lamont said.

The budget includes funding for road and rail upgrades.

“We are confident that our roadway construction will continue – $1.5 billion in 2027, up 50% from eight years ago,” Lamont said. “Our rail improvements are increasing to $1.2 billion in 2027, a three-fold increase from a few years ago.”

The budget aims to make the state more resilient to severe weather events. Lamont noted how the Naugatuck Valley region in particular has experienced severe flooding that destroyed homes and businesses.

To better plan and prepare for severe storms, the state is updating its flood maps and proposing that insurance brokers be required to offer flood insurance when homebuyers sign their mortgages. The state Department of Transportation is building roads and bridges back after storm damage so they are higher and better prepared “for the next surging river,” Lamont said.

House Republican Leader Vincent Candelora said Republican lawmakers will “rigorously scrutinize” Lamont’s budget plan in the weeks ahead to make sure the interests of “overtaxed” state residents come first.

“While I appreciate the Governor’s reluctant acknowledgment of the long-standing Republican push for property tax relief, his plan ultimately does more harm than good,” Candelora said, in an emailed statement Wednesday afternoon.

Candelora asserted the proposed budget would burden businesses with higher taxes, for example.

“The proposal punts immediate challenges like skyrocketing special education costs, and the ever-increasing expense of free healthcare for illegal immigrants,” Candelora said. “Meanwhile, his administration plans to shift $300 million off-budget to fund an early childhood education initiative and intends to do the same with future general fund surpluses—both lacking crucial details. This is yet another fiscal gimmick that raises more questions than it answers.”

Read Lamont’s full speech HERE.