Fazio, Lamont Pitch Economic Policy Agendas

Democratic Gov. Ned Lamont and Republican challenger Sen. Ryan Fazio laid out competing plans for the state’s economic future Sept. 17.

The two spoke ahead of the Nov. 3 elections, addressing more than 430 business leaders, public officials, and lawmakers at the CBIA Foundation’s The Connecticut Economy conference in Hartford.

Speaking separately with CBIA president and CEO Chris DiPentima, both agreed the state’s high cost of living and workforce shortage were significant challenges, while differing on policy approaches.

The candidates’ appearances followed the release of two CBIA Foundation reports—the 2026 Survey of Connecticut Businesses and new data on the state’s economic competitiveness.

“Too many working families say the cost of housing, healthcare, energy, and childcare makes it harder every year to make Connecticut work for them,” DiPentima said in his opening remarks.  

“Addressing affordability and creating economic opportunity must remain a top priority if we want to build a stronger, more competitive future.” 

The Fazio Plan

Fazio took the stage first, calling attention to his proposals for cutting income taxes and electricity bills.

He argued the state needs a change in direction, pledging tax reform, regulatory relief for businesses, and reduced red tape around occupational licensing and apprenticeships.

“Connecticut really does have all the fundamental attributes to succeed, like no other state economy in the entire country, and yet people are pessimistic,” he said.

“People are struggling to pay their bills. I know that this state and the state economy can grow and succeed like no other place, but it’s going to take a change in direction and policy from the top to accomplish that.”

On spending reforms, Fazio pointed to proposed savings that he said would fund his tax relief proposals.

“We could limit spending, find savings to the tune of $2 billion per year or more in a state budget over $20 billion, and use that to reduce taxes on middle-class families, make our state affordable, and help our economy grow,” he said.

“The state budget that was passed this year included an 8% increase in government spending year over year,” he said.

“I don’t know if your business or your family can afford to increase their spending by 8% year over year, I presume not.

“Most of the people I meet on the campaign trail cannot afford that, but you, as a taxpayer, are going to be left with the bill to pay for 8% government spending increases year over year.

“That’s not fiscally responsible. That’s not sustainable. We can probably afford a billion-dollar tax cut just by limiting the growth of government spending over the next several years to around the rate of inflation, and that’s part of what my plan is.”

Energy, Healthcare Costs

He shared plans to cut electricity bills and reduce housing construction costs, arguing for “a playing field that encourages innovation and improvement while driving down costs.”

“We want to cut electric bills by 20% by eliminating every single one of the discretionary, hidden government taxes and fees in the electric bill … to all the public benefits charges that amount to $500 million to a billion dollars in a normal year, every single year into the future,” he said.

“Most states do not have charges and programs and fees of that magnitude, and that’s part of the reason other states see their electric rates at just half of what Connecticut’s are.”

On healthcare, Fazio said he was a supporter of bipartisan legislation allowing small businesses to band together to access affordable, quality plan options for their employees.

Fazio called the failure of legislation giving small business employees access to affordable healthcare plans “a scandal.”

A small group of lawmakers has repeatedly blocked that legislation over the past three legislative sessions, despite a growing crisis impacting hundreds of thousands of small business employees.

“I see some of my Democratic legislative colleagues in the room. I think the ones in the room are the ones who, among others, support it,” he said.

“That’s great, and I think the evidence says it could lower premiums by 10% or more for businesses. That is phenomenal.

“There is no reason this shouldn’t have passed in the last eight years. The fact that it wasn’t done yesterday is a scandal in my mind.”

Regulatory Reform

Fazio also argued that state regulations often stifle economic growth, making it harder for businesses to operate.

“This state can flourish like no other place in the entire country, but we need change in policy, leadership, affordability, and relief,” he said. “Then we can create jobs and opportunity.

“We need to stop the labyrinth of red tape that only seems to grow in Connecticut, whether it’s limiting the number of apprenticeships in the trades, whether it’s permitting that’s so difficult for small and medium-sized businesses.

“Time and time again we see red tape constricting economic opportunity in Connecticut. I would eliminate two regulations for every new one that advances.”

“They shouldn’t be paying hundreds of dollars of fees to the government just for the right to work.”

Sen. Ryan Fazio

He added that regulatory policies like licensing fees and apprenticeship caps were hampering workforce development efforts and contributing to the state’s affordability challenges.

“There’s any number of regulations which unnecessarily block and inhibit economic growth and job growth and workforce development, like licensing requirements,” he said.

“We should welcome anyone who has a license, who’s up to code in another state, whether they’re a teacher or a nurse or anybody else who wants to come to Connecticut and start working in Connecticut and paying taxes.

“We need to cut the licensing fees for that 25% to 30% of our workforce that has to have a license. They shouldn’t be paying hundreds of dollars of fees to the government before they earn a wage just for the right to work.”

The Lamont Plan

Lamont, the two-term incumbent, followed Fazio, highlighting the improvement in the state’s finances during his administration and arguing that a third term will lead to further fiscal progress.

“Going back 10, 20 years, the business community and the state government have a pretty lousy relationship, and there was a lot of back and forth. It was not very helpful,” Lamont said.

But he said that’s changed in recent years, noting “we’ve had a good opportunity to work together.”

Lamont told the conference audience that his third term will focus on “affordability and opportunity.”

“I’ve got to do everything I can on electric prices and housing prices, and debt-free community college—all ways that we can make life a little bit more affordable, especially for our young folks,” he said.

“Make sure this is a place where they can start a start a family and start an opportunity. And you know, more broadly, I want to double down on entrepreneurship and innovation.”

On the state’s finances, Lamont touted a streak of balanced budgets and improved growth rankings.

“We’ve had eight balanced budgets in a row, and are becoming increasingly a place of economic opportunity,” he said, adding the state’s economy has “gone from one of the slowest growing states in the country to the 12th fastest.”

“The thing I’m proudest of is getting our fiscal house in order … having four and a half billion dollars in the bank compared to zero—which is where we were before—that means I’m not going to have to raise your taxes or cut the hell out of education funding if we have a recession,” he said.

“You ask, ‘is there a recession coming?’ Damn right there is. I mean, we’ve had seven or eight really strong years, but there’s a lot of volatility and a lot of risk out there, and I want to make sure that Connecticut’s better positioned to handle it than we were in the past.

“The good news is we’re getting our fixed costs under control, and pensions are less and less a piece of our overall budget than they were before.

“The bad news is, of course, at the same time we’re getting our pensions under control, healthcare costs are rising, and that’s why that’s the biggest priority I’ve got for the next four years.”

Healthcare Costs

Lamont said his administration is developing policy proposals to address soaring healthcare costs—a top-of-mind concern for residents and employers.

He repeated his opposition to state-run healthcare plans—the public option—while calling the association health plan concept a possible starting point for what he calls the “Connecticut Option.”

“I ran a primary against somebody who wanted me to raise taxes and have a public option in his hometown of Hamden—their public option is badly underwater,” he said.

“I didn’t like the public option because yet again it was going to be something the taxpayers are going to backstop.

“I didn’t like the public option because it was going to be something taxpayers are going to backstop.”

Gov. Ned Lamont

“That’s what we got to avoid and make sure that doesn’t happen in Connecticut or at the municipal level.

“We misestimate that the legislature adds on a lot of new mandates, and all of a sudden we have a deficit.

“What I want to do is create this preferred network and have independent providers, insurers, not-for-profits bid on this.

“I want them to take the insurance risk. We’re not very good at taking that type of risk. I found that out with pensions that we inherited about eight years ago.”

Housing, Education

He also pointed to the need to increase housing supply, build out pathways from education to the workforce, and support economic development and small businesses.

“I have another big priority—making sure we continue to have the best education system in the country,” he said, referencing the Career Pathways Commission established earlier this year and chaired by former U.S. Education Secretary Miguel Cardona.

“I’m not positive we’re going to have the cheapest workforce compared to the rest of the world, but I know we have some of the best workers in the country because we have one of the best education systems in the country.

“We have a great education system.”

Lamont

“We have a great education system and it’s a great public school system, and people want to be here.

“And I’ve got to make sure that system is all it can be, and make sure it trains people for the jobs that are out there.

“That’s my other big priority for the next four years, and I’ve got the right guy looking at it.”

‘Economic Crossroads’

The candidates’ remarks punctuated an event marked by repeated calls to address Connecticut’s economic challenges, with the dual goals of improving quality of life and competitiveness.

Those themes echoed through the conference’s business leader panel discussion earlier in the day, with the labor shortage and rising costs the top concerns for Connecticut employers.

Just 27% of employers expect the state’s economy to grow over the next 12 months, and only 9% said the state’s business climate is improving.

Residents are even more pessimistic about the state’s economic outlook, with just 10% expecting improved economic conditions in the next year according to the CBIA Foundation’s just-released Summer/Fall 2026 Connecticut Consumer Outlook.

The foundation’s consumer survey also shows that half of residents feel worse off financially than they were a year ago, an 11-point increase since May 2025.

The latest business survey and competitiveness data illustrate that even as some economic indicators improve, the state continues to struggle with high costs that strain both companies and their workers.

“Connecticut stands at an economic crossroads,” DiPentima said.

“The choices we make over the next year will determine where businesses invest and whether families can build a future here.”