Ned Lamont hopes Connecticut voters will give him something they haven’t given a governor in nearly a quarter-century: a third term.
Lamont, who was first elected in 2018 and reelected in 2022, would be the first Connecticut governor to win a third term since Republican John G. Rowland in 2002. If he completes another four years in office, the 72-year-old Democrat could become the state’s longest-serving governor since Jonathan Trumbull, who served during the Revolutionary War.
Lamont’s argument for another term is straightforward. In his view, Connecticut is in a much stronger position than when he took office, and he wants four more years to build on that progress.
“We came in eight years ago, in many ways the state was almost insolvent back then,” Lamont said, citing recurring deficits, unfunded pension obligations and sluggish economic growth.
During a wide-ranging, 50-minute interview at Hartford Business Journal’s offices, Lamont described his first two terms as partly playing “a little defense,” initially against the state’s fiscal problems and later the COVID-19 pandemic.
Now, he said, Connecticut’s improved finances provide greater capacity to invest in early childhood education, healthcare, infrastructure and other priorities. He points to eight consecutive balanced budgets, billions of dollars directed toward pension liabilities and a rainy day fund of about $4.5 billion as evidence the state is better prepared for an economic downturn.
“Having a $4.5 billion rainy day fund doesn’t make you bulletproof,” Lamont conceded. “But it puts you in a very different position.”
That fiscal record has been central to Lamont’s campaign against his Republican challenger, state Sen. Ryan Fazio of Greenwich, who argues that despite Connecticut’s improved finances, residents and businesses continue to struggle with high taxes and rising electricity, healthcare and housing costs.
No ‘false promises’
Affordability remains a central issue in the campaign.
Lamont cited the middle-class income tax cut enacted during his second term, expanded property tax credits — particularly for seniors and veterans — debt-free community college and no-cost early childhood education as policies intended to reduce household expenses.
But unlike Fazio, who has proposed between $2 billion and $2.5 billion in income tax cuts, Lamont is not promising another sweeping reduction.
“If you’re a candidate, you can promise anything you want. I’ve got to be a little careful,” Lamont said. “I’ve got a budget that has been in balance eight years in a row. Nobody else can ever say that, and I’ve done that by not overpromising.”
He also continues to resist calls from some Democrats to raise income taxes on Connecticut’s wealthiest residents, saying the state’s fiscal condition doesn’t require it.
Lamont says his economic development philosophy has been informed in part by his business background. Before entering politics full time, he founded a telecommunications company that provided cable television and other digital services to college campuses.
As governor, he has moved away from large incentive packages for individual corporations and instead focused on industry supply chains and broader investments intended to make Connecticut more competitive. That shift, however, has not meant shying away from high-priced economic development initiatives.
His administration launched the $100 million Connecticut Innovation Clusters Program, which uses public and private investment to promote growth in biotechnology, financial and insurance technology, and advanced manufacturing. The program has earmarked $20 million for an artificial intelligence and workforce development center in downtown Hartford, and $50.5 million for infrastructure and facilities supporting life sciences and quantum technology in New Haven.
Lamont has pledged an additional $121 million in state funding to advance Connecticut’s quantum technology industry. His administration also created the $25 million Strategic Supply Chain Initiative, which provides matching grants to companies that expand production capacity, adopt new technology or establish Connecticut operations supporting the state’s core industries.
The administration has also awarded more than $99 million through the CT Communities Challenge Grant program for redevelopment projects expected to produce more than 2,000 housing units, as well as new commercial and public spaces.
Despite those investments, one longstanding obstacle to Connecticut’s business competitiveness remains unresolved: high energy costs.
Lamont said he backs renewable energy but described his approach as “all of the above,” supporting a mix of energy sources to improve reliability and control costs. His administration supported the continued operation of the Millstone nuclear power plant and is talking with Canadian pipeline operator Enbridge about potentially expanding natural gas capacity into New England — a move that could draw opposition from environmentalists.
While Lamont describes himself as progressive, his governing philosophy on certain issues has put him at odds with the more liberal wing of the Democratic Party.
Those tensions prompted state Rep. Josh Elliott of Hamden to mount an unsuccessful primary challenge against him.
“I’ll look at anything that saves the ratepayers money, but I’m not going to make false promises,” Lamont said.
He also opposes hyperscale data centers — massive facilities that house computer servers and use enormous amounts of electricity — saying he would consider such projects only if developers also bring additional power generation to the grid.
Healthcare is another issue Lamont identifies as a major third-term priority.
His proposed Connecticut Option, now being studied, would create a larger purchasing pool that could include state employees and retirees, as well as employees of nonprofits and small businesses. Lamont said the combined group would have greater leverage to negotiate rates with hospitals and insurers.
An expanded UConn Health system, which acquired Waterbury Hospital earlier this year and is negotiating to acquire Bristol and Day Kimball hospitals, could serve as an anchor for the plan, Lamont said.
He also is campaigning on a proposal to require certain large corporations to contribute toward the state’s Medicaid costs when their employees rely on the public insurance program rather than employer-provided coverage.
Permitting reform
Housing, workforce shortages and education funding are also part of Lamont’s economic agenda.
On housing, he said he supports increasing supply but believes municipalities should retain a significant role in deciding where development occurs. He described an earlier housing proposal that he vetoed as too “heavy-handed,” while saying legislation subsequently approved during a special session gives towns incentives to identify areas for multifamily development.
He said Connecticut last year had a larger increase in new building permits than any other state.
“We did it with the mayors, not over the mayors,” he said.
Lamont also said Connecticut needs to speed up permitting and other development reviews, including examining whether the State Historic Preservation Office’s process can be improved.
SHPO administers programs that identify and protect historic properties and reviews certain redevelopment projects involving state or federal funding. Developers and municipal officials have criticized the agency’s review process as burdensome and unpredictable, saying it can stall projects.
While defending historic preservation, Lamont said developers should not have to endure prolonged waits for decisions.
“If it’s going to be ‘no,’ tell them no in six weeks, not two years,” he said.
On education, Lamont believes the state should play a larger role in helping municipalities manage special education costs, which can vary sharply from year to year. He suggested the state could standardize services, negotiate better rates and rely more on local or regional approaches to control costs while improving student outcomes.
Lamont also wants to expand apprenticeships, streamline workforce training and make it faster and less expensive to enter occupations facing shortages, including nursing, teaching and the skilled trades.
Here’s what else Lamont said during the HBJ interview. The Q&A was edited for length and clarity.
Q: What do you say to residents and businesses who still say Connecticut is unaffordable?
A: How about debt-free community college? How about universal early childhood education for everybody earning under $100,000? That could save you $1,000 to $2,000 a month. If I can bend the curve on healthcare, that could represent significant savings going forward.
[Beginning in July 2027, eligible families earning up to $100,000 annually whose children are enrolled in state-funded Early Start CT spaces are expected to receive child care at no cost. The state has invested about $620 million in the Early Childhood Education Endowment to support the initiative.]
Q: Business groups propose eliminating the sales tax on commercial electricity and natural gas. Do you support that?
A: If you consider telling me how we pay for it. That’s always the inverse of everything I do. You’re not eliminating, you’re shifting from somewhere to the other. Who pays a premium for that? Tell me what you would do. I haven’t seen that yet.
Q: Is there one decision you’d make in a third term that the state’s business community might not like?
A: Here’s one maybe the business community doesn’t like. I looked at Medicaid. I found that, let’s say, 70% of the people are working full time or virtually full time for companies that make billions of dollars in profit.
I believe in an employer-based system, but if that company puts its people on Medicaid, maybe you should reimburse the state a little bit for that. You don’t have to if you provide decent health insurance.
So I’m not sure everybody loves that idea, but it’s the way I’m thinking about it, especially if Trump is going to cut hundreds of millions of dollars out of Medicaid. Somebody’s got to figure out what to do.
