State leaders tell Middletown council budget will be tight; urge housing strategy that fits island

Senators and representatives who met with the Town of Middletown’s council warned the town that the state will face a structural budget shortfall and encouraged local leaders to press for housing programs tailored to island needs.

State lawmakers speaking to the council said November revenue estimates point to a deficit “in the several hundred million dollar range,” and that Medicaid and K–12 education are the largest items in the General Fund. “Medicaid costs are the single highest cost in the state,” a state senator told the council, describing Medicaid spending at roughly $1.3–$1.4 billion and K–12 aid at about $1.2 billion from a roughly $5 billion general revenue pot.

Why it matters: Those figures set the context for what state lawmakers and the governor will prioritize during the legislative session; town officials cannot expect large new municipal appropriations unless the state’s fiscal picture improves. For…