Balanced budget

Connecticut polls opened Tuesday with more than 505,000 voters having already cast ballots early or absentee, about 22% of registered voters, with Democrats outpacing Republicans among early returns. Gov. Ned Lamont, a Democrat seeking a third term, faces Republican state Sen. Ryan Fazio, with affordability, taxes, and healthcare costs dominating the race. A Lamont win would make him Connecticut's longest-serving modern governor. Other closely watched races include the First Congressional District, where Democrat Luke Bronin aims to keep the historically blue seat against Republican Amy Chai, and the Fifth District, where Democratic Rep. Jahana Hayes faces Republican Chris Shea. Polls close at 8 p.m.

Tennessee voters will decide in November whether to constitutionally prohibit the state from ever levying a property tax, even though the state hasn't collected one since 1949. The measure is one of three proposed constitutional amendments on the November ballot and would amend Article II, Section 28 of the state constitution to bar the legislature from imposing a state property tax on real, personal, or mixed property.

Supporters, including Tennessee Association of Realtors president Chris Garrett and Republican lawmakers, argue the ban would protect homeowners from a future tax that only requires a simple legislative majority to enact, and note the amendment mirrors the state's 2014 constitutional ban on income taxes. Opponents, including Democratic Sen. Jeff Yarbro, call the measure unnecessary given the tax's 77-year dormancy and warn it could limit lawmakers' options during future fiscal crises. Others worry it could complicate taxation tied to business property values. Because amendments require approval from two consecutive General Assemblies before reaching voters, final passage now rests with the electorate.

Salina, N.Y. voters will choose a new town supervisor after Democrat Raul Huerta, who unseated Nick Paro in a 2023 blue-wave win, opted not to seek re-election. The race pits Democrat Leesa Paul, a two-term town board member, against Republican David Stott, a former town councilor and county legislator making his first run as a Republican after decades as a Democrat. The town, with about 32,400 residents and a $20 million budget, has more registered Democrats than Republicans, though non-enrolled voters form a significant bloc.

Both candidates cite economic development, housing, and vacant commercial properties as priorities, while splitting on property reassessment, which Paul supports and Stott opposes. A key local issue is the ICE processing facility in Salina, which includes holding cells and has drawn repeated resident pressure at town board meetings over zoning authority and oversight; Paul favors waiting on legal review, while Stott considers it a lower priority than economic issues. Both support more housing amid demand tied to Micron Technology's planned arrival, though they diverge on data center development. Early voting begins Oct. 24, with Election Day Nov. 3.

Connecticut officials announced that the state closed its latest fiscal year with a budget surplus for the eighth consecutive year, with the General Fund reporting $380 million in surplus and the Special Transportation Fund reporting over $209 million. Comptroller Sean Scanlon highlighted the figures as evidence of sustained fiscal stability, noting the state's Rainy Day Fund has reached a record high alongside continued paydowns of pension debt.

State Treasurer Erick Russell credited Connecticut's pension fund performance since 2020, saying the state has led the nation in asset growth and outperformed roughly three-quarters of larger public pension plans nationally, attributing the gains partly to additional contributions.

Not all reaction was positive. Senate Republican Leader Stephen Harding criticized the administration, arguing residents remain overtaxed and pushing for $2 billion in tax cuts along with relief on fuel, groceries, and electricity costs, framing affordability as a central concern heading into future budget debates.

Ohio's Republican-controlled legislature convened a special session and passed a bill suspending the state's 38.5-cent-per-gallon gas tax for 90 days, funded through the general fund surplus rather than road-project money, addressing Gov. Mike DeWine's earlier concerns. The Legislative Service Commission estimates average drivers could save up to $55 over the suspension period.

Republicans used procedural moves to keep debate limited to the gas tax bill, blocking Democratic attempts to introduce broader affordability measures, including utility bill relief, a bigger child tax credit, a larger homestead exemption, and a resolution urging President Trump to end the war in Iran, which Democrats blame for rising fuel prices. Democrats also proposed redirecting sports-stadium funds, including money earmarked for the Cleveland Browns' Brook Park stadium, toward consumer relief, and pushed for a data center moratorium sought by advocacy group Conserve Ohio. Senate President Rob McColley said such issues risked derailing the gas tax bill. Democrats call the tax holiday an election-year move benefiting Republican gubernatorial candidate Vivek Ramaswamy, who trails Amy Acton in polling.

Florida Gov. Ron DeSantis pushed back on President Trump's proposal to send $5,000 checks to American adults if Republicans retain control of Congress after the midterms, warning the plan would worsen inflation and add to the national debt. Speaking at a news conference in Miami, DeSantis pointed to Florida's budget surpluses and tax cuts as a better model, arguing that returning money through tax reductions is preferable to broad direct payments that could flood the economy with cash.

The proposal, floated by Trump on social media, would likely cost more than $1 trillion and require congressional approval, adding to a federal deficit already near $1.8 trillion annually. It follows earlier Trump proposals, including a $2,000 "dividend" and a $1,776 payment to military members. Legal experts note the plan would likely be permissible since payments would go to all Americans regardless of voting behavior. The idea comes as Republicans face a difficult midterm landscape, with narrow House and Senate margins at stake amid Trump's low approval ratings.

Harris County spends about $1.2 million a day to provide free health insurance to nearly 46,000 employees and retirees, an unusual benefit compared to peer governments and private employers that typically split premium costs with workers. The expense has doubled over the past decade and is now a central issue in the county's budget crisis, with a projected $181 million deficit and a possible 10% property tax increase under consideration.

The county's budget shows healthcare claims are expected to exceed revenue and reserves by $8 million in fiscal year 2026 and $102 million in fiscal year 2027. Commissioners rejected proposals requiring employees to pay into a base plan, though one pharmacy-related change affecting five people is projected to save $9 million. Commissioner Adrian Garcia floated grandfathering current employees while charging premiums to new hires. Critics, including Commissioner Tom Ramsey and Baker Institute fellow Bill King, argue the county has a spending problem driven by staffing growth and rising payroll, while other commissioners defend healthcare benefits as a commitment to workers amid broader budget pressures tied to state and federal funding cuts.

Cuyahoga County Executive Chris Ronayne and Council President Dale Miller are directing county departments to cut spending after years of overspending left the budget badly out of balance. An Aug. 14 memo asks general-fund departments to cut 3.3% and those funded by the Health and Human Services levy to cut 8%, especially if a proposed levy renewal fails. Despite a hiring freeze and $12 million in cuts already made this year, the general fund is projected to end 2026 with a $19.2 million deficit and the HHS fund with an $18 million shortfall, pushing both below required reserve levels.

Steeper cuts target the Sheriff's Office, Common Pleas and Juvenile courts, the Fiscal and Prosecutor's offices, and HHS-funded divisions including Children and Family Services and Senior and Adult Services. Officials cite rising labor costs, jail overtime, and new programs like Universal Pre-K and a homeless youth campus as contributing factors. A 2.5-mill HHS levy on November's ballot could ease — but not eliminate — the need for further reductions in 2027. Department proposals are due by mid-September, with County Council reviewing the budget afterward.