Gov. Ned Lamont told a business audience Wednesday that Connecticut’s spending cap, one of the so-called fiscal guardrails that have constrained state spending in a time of record budget surpluses, is “sacrosanct.”
It was Lamont’s strongest defense of the spending cap, though he was not as definitive on another guardrail: a mechanism called the volatility cap that diverts certain revenues to budget reserves and paying down debt and pension liabilities.
The governor’s comments to the annual economic summit of the Connecticut Business and Industry Association in Hartford came as Democratic legislative leaders and social services advocates are pressing for greater flexibility, especially in the volatility cap…