With Congress on the verge of passing a historic $1.9 trillion coronavirus relief package, Connecticut is expected to receive hundreds of millions of dollars more than anticipated from the federal government, and the Gov. Ned Lamont administration is trying to determine how the additional funding will be spent.
Among other provisions, the federal bill is expected to provide $2.6 billion in direct relief to the state to cover revenue lost because of the pandemic.
Lamont’s budget relies on about $1.75 billion in federal funding coming to the state to cover lost revenue, leaving about $850 million extra coming from the federal government.
Office of Policy and Management Secretary Melissa McCaw said Monday that the administration will continue to work with the legislature on a final budget document, but said Lamont should have some leeway regarding how the excess funding is allocated.
“Our strategy for use of these funds is directly tied to the final determination of the state budget,” she said. “Our success in Connecticut has been linked to our nimbleness, us being able to respond to the needs when they arise, so we do believe that the governor would have to have some discretion to be sure that there’s flexibility in how these dollars are used.”
McCaw noted that there would be limitations on how states can use the COVID-19 relief dollars, adding that a balanced budget and maintaining services is the primary goal, while also getting people back to work and stabilizing the economy.
“Those pieces need to fit together and they need to be done in a way that complies with all the guidance that’s coming from the federal government,” she said.
Municipalities also are expected to receive about $1.6 billion in relief to help cover their costs related to the pandemic.
The state and municipal aid must be allocated before the end of 2024, which Lamont said provides some time to determine how to best utilize the funding.
“There’s a few years here, so we’re working hard to balance that out and make sure that the monies are invested in the most significant way where we can make an enormous difference,” he said.
There are stipulations within the federal bill, meaning states cannot use the funding to reduce taxes or address long-term costs, such as pensions.
The federal package also includes an increase in the child tax credit from $2,000 to $3,000 for those younger than 18, and $3,600 per child younger than 6, a provision that is expected to cut child poverty throughout the country in half.
Lamont and U.S. Sen. Christopher S. Murphy, D-Conn., are hopeful the child tax credit, which the bill calls to expire in two years, would be made permanent.
“I think the child tax credit is transformative, and any time that Chris Murphy and (Senator) Mitt Romney agree on something it probably has some long-term legs to it, so I’d like to think it’s a permanent part of lifting our kids out of poverty,” Lamont said.
The federal bill also emphasizes child care, making it more widely available so working parents are confident their children are being cared for properly, enabling them to go back to work, Lamont said.
“This is the plan the president ran on. This is the mandate that he was given,” Murphy said Monday, noting that the package is supported by a majority of Americans. “This is a package that has unified the country.”
Along with $1,400 direct stimulus checks, $300 in additional weekly unemployment benefits, and the child tax credits, Murphy said Congress is taking a “building up from the bottom” approach that aims to put money into people’s pockets, which would lead to instant spending, boosting the economy.
Additionally, education funding also would include allocations to address time lost in the classroom, as well as emotional support through summer programs in order to prepare students to come back to school next year.
“We know that kids have been hurt by this crisis,” Murphy said, adding that schools should use the funding to hire more social workers and special education paraprofessionals who can be employed for more than a single school year. “Broadly, schools are going to be able to fit these dollars to their particular needs.”
He added that the bill includes $6 billion for community health centers nationwide and another $3 billion for mental health for all ages.
“You’re going to see Connecticut’s health centers and Connecticut’s mental health centers get a major infusion of funding over the course of this year that will allow them to hire more staff and reach more people that have been in mental health crisis over the course of the last year,” Murphy said.
Since Friday, 2,066 people tested positive for COVID-19, with 388 hospitalized, a net decrease of 40. An additional 21 people died, bringing the total number of fatalities in Connecticut linked to the virus to 7,725.
Of the more the 78,600 tests conducted over the weekend, 2.63% came back positive.
To date, the state has administered about 1.16 million doses of COVID-19 vaccines, with about 75% of those 75 years old or older receiving their first dose. Overall, about 26% of all adults in the state have received their first dose.
An additional 137,000 doses are arriving this week, meaning there will be the same number of available appointments as last week for those who are eligible but still waiting for their shots.
Murphy praised Lamont’s approach to the pandemic and the state’s ability to efficiently administer COVID-19 virus doses.
“We have been very proud to be able to tell Connecticut’s story over the course of this pandemic,” he said. “It is absolutely exceptional how efficient our operation is, and I think Connecticut is going to meet those national targets quicker than anybody.”
Murphy said Congress is passing the American Rescue Act as soon as possible so President Joe Biden can concentrate on other priorities.
“There are other issues that President Biden needs to deal with. We’ve got to pass an infrastructure bill, we’ve got to deal with climate, we’ve got a badly broken immigration system,” Murphy said. “Congress has other work to do and that’s why we decided to go big and bold with this plan, so that we can implement it. We can let states put the money where it’s needed and then Congress can have the room to try to move to other issues that still linger as crises and as priorities for the American people.”
The U.S. House could pass the federal package as soon as today, and Murphy said he expects Biden to sign it into law before the end of the week.
