At today’s 2026 CBIA Economic Summit, Gov. Ned Lamont and a panel of Connecticut lawmakers had the chance to speak on some of the economic policy initiatives they plan to pursue in the upcoming legislative session, which begins next Wednesday. Lamont spoke in favor of maintaining the state’s fiscal guardrails and said he remains cautious when using the state’s surplus revenue, finding ways to lower rising health and energy costs, supporting high-growth economic sectors, and eliminating licensing fees.
“I want to make sure that we stay true to our guidelines of an honestly balanced budget,” said Lamont. “Right now, there’s a certain sense among Republicans and Democrats in the legislature, that ‘Whew, we’ve rounded the bend, we can get back to the old ways.’ And you know, the Republicans have about a billion dollars in tax cuts on the table, we’ll figure out how to pay for that later, and the Democrats have about a billion dollars of tax credits and other initiatives. We’ve got to be very careful.”
Lamont spoke positively of the state’s economic outlook, pointing to Connecticut’s 5.6% growth in GDP last quarter as an example, as well as the state’s unemployment rate, which is slightly below the national average, and the fact the state is entering its seventh straight year of balanced budgets. Despite this positivity, Lamont also urged caution, saying it was “no time to be whistling ‘Happy Days Are Here Again,'” and that the state will have to “work hard to stay ahead of the pack.”
“I want to make sure that we stay true to our guidelines of an honestly balanced budget, and to make sure that what happened in 2017 and 2008 and ’09, where we spent every last dime of very volatile capital gains, and then when that disappeared, 20% in a year, all hell broke loose, and we’re not going to let that happen again,” said Lamont.
On the other hand, Lamont said that the state’s strong fiscal guardrails have allowed the state’s budget to expand, thus allowing the state greater opportunity to “take care of really core needs,” such as funding shortfalls created by federal cuts to Medicaid and SNAP. Lamont said that reducing rising healthcare costs will be a focus, noting that right as the state has begun to free up its budget from state pension debts, “healthcare costs are crushing us.”
“Sean Scanlon will tell you, you know, for one drug, we just moved to generic, and it’s gonna save us probably $50 to $100 million dollars a year,” said Lamont. “Those are the type of things we’re doing. I am thinking about how I can direct our state employees, retirees to places, the hospitals where you get the best value; some hospitals are 50% more in costs than others.”
Lamont said the state is “working hard on energy,” while maintaining his stance that cutting the state’s public benefits charge “is not the way to handle that.” Lamont said he “feels he has to do something short-term, near-term, for people who are getting crushed,” and is considering proposing a one-time energy rebate to lawmakers this session.
“I think a lot about our heating bills during this incredibly cold, cold January, and so I’ll be talking to our friends in the legislature,” said Lamont. “Maybe there’s a one-time energy rebate we can provide for folks, that doesn’t create a hole in the out years, to get your family say, you know, 400 bucks, that will just help you through this complicated time.”
Lamont said that he will have “some considerable conversations” with Chris DiPentima, CBIA’s President and CEO, about research and development (R&D) tax credits for Subchapter S corporations and pass-through entities, similar to what the state has previously done for life-science and biotech companies. Lamont said the state is “trying to do everything we can to A. Get out of your way when we can, and B. be helpful where we can,” in regards to the state’s manufacturing, trades and rebuilding sectors. Lastly, he reaffirmed his goal of removing the burden of state licensing fees for occupational workers.
“I tried to do it last year, so if you feel strongly about it, feel free to step up,” Lamont said to the lawmakers present. “Why does a plumber have to get recertified every year? Does it really change that dramatically?”
After Lamont finished speaking, Senators Christine Cohen (D-Guilford) and Paul Cicarella (R-North Haven), as well as Representatives Tami Zawistowski (R-East Granby) and Jack Fazzino (D-Meriden), all shared their own legislative ideas for improving the state’s affordability and economic outlook.
Cohen, Senate Chair of the Transportation Committee and co-chair of the legislature’s Bio Science Council, said she would like to see the state find ways to reduce healthcare costs and improve access to capital for small businesses, expand and strengthen the state’s R&D tax credits and angel investor incentives, find a consistent, long-term plan for energy affordability, and to properly fund state transportation initiatives while extending funding for last year’s pilot program for micro-transit. Last year, the state approved $19.5 million in funding for micro-transit programs in 9 communities across the state, allowing residents avenues for low-cost, short-distance rides to locations in their communities. Cohen, who owns her own bagel shop in Madison, said one of her disabled employees uses it to get to work, and that it has “been life-changing for her.”
“I’ve talked to a small manufacturer in Chester, talking about how we can use micro-transit to get folks to different shifts within that manufacturing sector,” said Cohen. “So this is incredibly important across the board, no matter the sector, making sure that we’re getting our workforce to where they need to be.”
Cicarella, Ranking Member of the State’s Public Safety and General Law Committees, shared Lamont’s support for the reduction of licensing fees, and shared Cohen’s support for lowering healthcare costs on small businesses. He said he would like the state to reduce red tape on business owners, support association health plans for small businesses, oppose “one-size-fits-all” labor mandates, expand career awareness for trades and manufacturing jobs, and find a balance in AI regulation that protects consumers without hindering business innovation. Cicarella pointed to a bill passed last year that reduced the state’s journeymen-to-apprentice ratio required for trades such as HVAC, plumbing and electrical work, as an example of effective legislation that lowered barriers to entry for workers.
“I thought that was really good,” said Cicarella. “It was a way to address a problem. There’s a lot of other simple solutions to start to open up the door for our young children to find paths into meaningful careers, and that’s something we really have to do.”
Zawistowski was interested in finding ways to reduce insurance and materials costs for small businesses, strengthen workforce preparedness in the aerospace and manufacturing sectors, expand and support career and technical education, encourage local school-to-business partnerships to educate children on local job opportunities, and working with the state’s Department of Education to support the development of specialized, career-focused schools.
“You just have to be able to provide choices for these students at an earlier age, give them some background on what different trades are,” said Zawistowski. “They should be able to maybe explore some different things, maybe have a curriculum where you try different things. I mean, there’s a lot that we can do that just needs to be fleshed out a little bit more.”
Fazzino, Vice Chair of the State’s Judiciary Committee, stressed the need for the state to make Connecticut more affordable for young professionals and families, by continuing to work on lowering the costs of utilities, housing and childcare. Fazzino highlighted the state’s recently created childcare endowment fund as an example of a meaningful affordability measure, but said the state has to ensure residents and businesses “buy in” to the program, and are aware of how it works. He also supported looking into ways to lower the premiums paid by businesses for workers’ comp insurance, without removing protections for injured workers. Lastly, Fazzino supported the streamlining of licensing and permitting processes and removal of fees, and the removal of red-tape on small businesses.
“To sort of summarize — my focus for the next few months is to make sure we’re continuing to build on the progress we did last session in terms of utilities, in terms of housing, in terms of childcare, and also making sure that those programs are being properly implemented throughout the state,” said Fazzino.
One thing that Cohen, Fazzino and Zawistowski agreed on is the importance for business owners and other stakeholders to make their voices heard during the legislative process.
“It is incredibly important to hear from small businesses when we’re doing legislation,” said Zawistowski. “Every bill has unintended consequences, and if you are at the table, you can point out how you may be positively or negatively affected by a bill. The only way we’re going to know is if you tell us.”
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