The state’s rainy day fund has exceeded the legal limit for the first time in 19 years, approaching $3.1 billion and forcing Gov. Ned Lamont’s administration to release some of that bounty to pay down debt. The projections, much rosier than the administration offered two months ago, sparked renewed calls Tuesday from key lawmakers for more state spending to combat the coronavirus pandemic. State law caps the reserve at 15% of General Fund spending, which currently pegs the limit at just over $3 billion. The fund currently holds $76 million too much, which must be transferred into Connecticut’s cash-starved pension programs for state employees and teachers. And even though Connecticut now expects to have $942 million in its reserves entering next summer, the administrations anticipates a $3.5 billion hole in the 2021-22 fiscal year — with much of that gap driven by the coronavirus-induced recession. A third wave of federal pandemic relief for states might help close that gap further, but Congress has yet to reach consensus on another package.
CT maxes out budget reserve as coffers approach $3.1 billion