Connecticut Governor Urges Cut to Transportation Borrowing Amid Crisis

BREAKING: Connecticut Governor Ned Lamont has announced an urgent need to roll back the state’s surge in borrowing for transportation projects. This shift comes as $2.3 billion in anticipated revenues from fuel and sales taxes stagnate, raising alarms about the viability of ongoing infrastructure improvements.

Officials project that borrowing for transportation will be cut starting in the next fiscal year, which begins on July 1, 2025. Just one year ago, the Lamont administration had planned to boost the transportation construction budget by 40%, from $1 billion to $1.4 billion by 2028. Now, a new forecast indicates that three-quarters of this planned growth is now deemed unaffordable.

According to the Fiscal Accountability Report issued on November 20, $400 million in new borrowing for the 2026-27 and 2027-28 fiscal years should be stalled. This reversal threatens to stymie job growth in the construction industry, with Donald Shubert, president of the Connecticut Construction Industry Association, warning that uncertainty could lead businesses to pull back on hiring.

“Any uncertainty makes businesses hesitate,” Shubert stated. “Slowing down infrastructure work directly impacts economic activity.”

The Connecticut Business and Industry Association echoed these concerns. Vice President Chris Davis emphasized that businesses need stable state funding to make hiring and expansion decisions.

The Lamont administration’s revised forecast shows that the Special Transportation Fund (STF)—which covers project costs—will only see a minimal revenue increase of less than $6 million over the next three years, a sharp decline from the previously expected $84 million. The sluggish revenue growth and rising costs could push the STF into insolvency by 2029, a situation that could cripple Connecticut’s transportation projects.

Despite these challenges, there are potential solutions on the table. Lamont has previously suggested tightening budget controls to facilitate more construction funding, yet he remains cautious about scaling back rigorous pension debt payments that critics argue are draining essential resources from other core programs.

Senator Christine Cohen, co-chairwoman of the legislature’s Transportation Committee, has voiced her support for maintaining investments in infrastructure, stating, “If we abandon our planned investment, we’re looking at the big picture incorrectly.” She highlighted the economic benefits of modernizing Connecticut’s aging transport systems.

Connecticut ranks poorly in the condition of its infrastructure, with many bridges categorized as “structurally deficient.” This classification indicates that significant repairs are necessary, underscoring the urgency for funding and action.

As the February 4 budget proposal date approaches, Lamont’s administration faces tough decisions. “We expect considerable discussion around this transportation question in the coming months,” said Chris Collibee, Lamont’s budget spokesman.

While federal funding for transportation has increased since the Biden administration’s 2021 infrastructure program, uncertainty looms with potential changes in federal policies under the current administration.

The Department of Transportation (DOT) has over 650 active projects and remains committed to strategic investments that will benefit Connecticut residents and businesses, according to Commissioner Garrett Eucalitto.

With the future of Connecticut’s transportation funding hanging in the balance, construction industry leaders and state officials are calling for immediate action to secure the necessary financing that will ensure job growth and economic stability. As discussions progress, the impact of these funding decisions will resonate deeply across the state’s economy and infrastructure.