Connecticut is poised to expand its investment in affordable childcare while taking another big chunk out of its legacy pension debt. The state’s $27.2 billion budget for the fiscal year is on pace for a $412 million operating surplus, which will be earmarked for a special endowment for early childhood education.

Investing in Families

According to Governor Ned Lamont, “Making Connecticut more affordable means making it easier for families to live, work and raise children here.” High-quality early childhood education gives children the strongest possible start in life while helping parents pursue careers, grow their incomes and contribute to the economy.

The state’s early childhood commissioner, Elena Trueworth, added that “This endowment represents a transformational commitment to Connecticut’s youngest children and the families who depend on high-quality early childhood education.” Eligible families are expected to begin receiving no-cost childcare or partial assistance subsidized by the endowment starting in the 2027-28 fiscal year.

Pension Debt Reduction

A special savings program outside the formal budget will capture another $1.3 billion in income and business tax receipts, with most of it going toward shrinking the state’s pension debt. The rest will boost Connecticut’s emergency reserve or “rainy day fund” to almost $4.5 billion, which is 18% of annual operating expenses, the maximum allowed by law.

Connecticut entered this fiscal year with more than $33 billion in unfunded pension obligations. The state remains one of the most indebted per capita in the nation, with most of the debt stemming from inadequate saving by legislatures and governors for more than seven decades between 1939 and 2010.

Original reporting: The Connecticut Mirror — read the source article.