By Kathy Kennedy
State Rep., R-119
Kathy Kennedy
Are we able to make our state more affordable amidst high inflation and rising costs? That’s the million-dollar, or should I say, billion-dollar question lawmakers will be tackling during the 2025 legislative session.
The good news: we don’t have to look far for a solution. Back in 2017, Connecticut was on the verge of an economic recession. Without the Republican state budget proposal that introduced “fiscal guardrails” to monitor spending, pay down debts and defend against tax hikes, our current financial landscape would have been drastically different.
Simply put, the fiscal guardrails implement four main protections. First, and arguably the most important, is the spending cap which keeps the budget in line with inflation and income rates every year. It’s also responsible for footing the bill for several union pensions and grants towards “distressed municipalities” that require annual financial support.
Second is the revenue cap which builds-in a 1.25 percent buffer to keep our spending in line with our revenue stream.
Third is the bond cap, which limits the amount of bonds sold in a given year to protect our assets and help fund statewide projects.
Last, there is a volatility cap which requires the state to save on the revenue it earns from investments to grow our rainy-day fund and help with emergency relief services.
To date, these guardrails have saved our state over $170 million in debt payments, with more than $1 billion expected in future savings. That’s why the guardrails have remained in place.
However, at a recent town hall in Hartford, several special interest groups were joined by Democratic leaders as they collectively called for the elimination of the fiscal guardrails to free current spending limitations for billions of proposed expenditures. If these guardrails have benefited us for years, why would Democrats want to get rid of them?
For the past few years, Democrats have relied on American Rescue Plan Act money from the pandemic to fund their special interests, but that has since dried up. Now, if they eliminate the guardrails to increase spending, they will also have to increase statewide taxes to ensure they can fully fund their billion-dollar agenda.
Does raising taxes to fund special interests sound fair to you? As a resident and taxpayer, I ran for public office because I wanted to fight for a more affordable Connecticut knowing what it takes to raise a family here. If you want to defend your finances and maintain an affordable lifestyle, we need all voices to share their support for saving the fiscal guardrails.
This legislative session, I will work to propose and support affordable policies that reflect your interests and protect your wallet. I urge all my constituents to reach out to me as we move forward regarding any policy or for more information on how you can share your voice in the lawmaking process.
As always, please never hesitate to contact me at Kathy.Kennedy@housegop.ct.gov or at 860-240-8700. I wish you all a happy and healthy new year.