what are the fiscal "guardrails?"

These policies act more as a roadblock and hinder the General Assembly's ability to act democratically.

Some of these measures are decades old. They lock in social inequality from 1991 - and don't allow for changes that serve the state's needs in 2024.
These roadblocks bypassed public input and bound our state to these rules for years to come.
They prevent long-term stability by making it nearly impossible to invest in programs that could reduce future public service needs and increase tax revenue (like higher education).
One measure in particular, the Volatility Cap, limits the state's ability to appropriate some revenue, leading to a huge build-up of surplus funds that we cannot use even in times of great need.
If we want tax reform, we need to get these roadblocks out of the way. Under the current fiscal roadblocks, even if we fixed CT's upside-down tax structure, we still couldn't invest the additional revenue making it impossible to unburden the working class.

Guardrails for the wealthy, Roadblocks for the public.pdf

WHY DO SOME PEOPLE SUPPORT THESE POLICIES?

The roadblocks protect the interests of the most wealthy in our state -- the billionaires and millionaires.

A closer look reveals a stark contrast in how these policies affect working families struggling to make ends meet versus the ultra-rich, who see their wealth safeguarded and untouched.

GUARDRAILS V. ROADBLOCKS?

When these fiscal policies were first introduced, they were framed as "guardrails"—a term that evokes safety, stability, and the idea of protecting the state from fiscal harm. However, this framing misrepresents the actual impact of these policies. Rather than guiding Connecticut toward a safe and sustainable fiscal path, they have created significant barriers to progress by restricting investments in public goods and essential services.

HOW could WE remove these roadblocks to progress?

Amend and adopt a sensible revenue intercept: A new revenue intercept process would allow legislators to earmark funds for specific purposes, like public education and health services.
Reform the volatility cap: This cap should be indexed to tax rates and based on a rational study of revenue volatility over time, so that the state can appropriate funds more effectively.
Revise the statutory spending cap: Removing confusing language about revenue intercepts and exemptions for distressed municipalities would allow for more targeted investments in certain areas.
Repeal the bond lock: This would restore majority rule in the General Assembly and allow future legislatures to adjust the budget rules as needed.

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