State delegation warns of large structural deficit; housing, Medicaid, traffic top Middletown priorities

Middletown’s Town Council met with members of the town’s General Assembly delegation to set local legislative priorities for the upcoming session. State lawmakers and local officials discussed the state’s fiscal outlook, Medicaid‑driven costs, housing funding rules and local transportation concerns.

Senator Lou DePalma summarized the fiscal picture the legislature faces: “[W]e're probably looking to address a structural deficit in the several hundred million dollar range, 300 plus or minus some tens of millions.” He explained that Medicaid and education are the largest budget drivers and that Medicaid reimbursement rates and caseload changes have been major cost pressures.

DePalma and other delegation members urged towns to distinguish “necessary” proposals from…