Fiscally Strong CT Needs Residents To Get Back To Work: Lamont

CONNECTICUT — The economy in Connecticut may be coming back slowly, but state coffers are filled.

Gov. Ned Lamont said that fiscal year 2021 will enjoy a $470 million budget surplus, and the state's "rainy day fund" is flush at an "extraordinary" $3 billion.

"We're not out of the woods. We still have big pension obligations and long term fixed costs, but we are making slow but steady progress," Lamont said.

Lamont pointed to the state's fiscal strength as a reason it did not need any more new taxes, or tax increases. The state is on track to paying down $1.4 billion in debt this year as well, according to the governor.

According to the state Department of Labor, Connecticut has recovered only six out of 10 jobs lost since the start of the coronavirus pandemic. Even now with about 75 percent of the state population having received at least their first dose of the vaccine, "There is still some COVID anxiety out there," Lamont said.

Despite that, the governor said that businesses have not requested the state's assistance in developing a digital vaccine passport, as is used by many establishments in New York

During a news conference Thursday, Lamont acknowledged that the $300 in weekly enhanced unemployment benefits many residents were receiving were contributing to many of the pre-pandemic jobs not getting filled. He stressed it was not the only reason: "We're just coming out of a severe pandemic ... there's a variety of reasons why people are not racing back to work."

The state Department of Labor announced Thursday that, as of May 30, the agency will once again require those receiving unemployment benefits in the state to show proof that they are actively looking for work.

On Monday, Lamont announced Connecticut residents who have been out of work "long term" may be eligible to receive a $1,000 "signing bonus" for returning to work at a full-time job, beginning May 24. The governor said there are currently 65,000 job openings in the state.

The service industry was particularly hard hit, but the governor anticipated it would be back "full throttle" by the end of the year.