It is always a dangerous combination when, during a budget year, the state announces a surplus in excess of $507 million. Originally, many legislators interpreted this news as an easy way to fund all kinds of projects from increases in allocations to agency programs, to building baseball fields, to installing sidewalks in most of Connecticut’s towns.

When Governor Rell delivers her budget address February 7, you can bet she will repeat her words of caution from last week. Controlling spending is absolutely essential as the surplus will be exhausted in the next few years through not only funding current level programs and an unsure economy, but also by hundreds of new initiatives before the general assembly and current projects funded through bonding.

Energy costs have been a major contributor to the increased costs for municipalities, businesses, and organizations here in Connecticut. Accordingly, the budget needs to increase to accommodate these rising rates, leaving little room for legislators to find money for personal projects. The budget historically increases by 6% annually, but is projected to reach double digits over the next biennium. Governor Rell’s budget office predicts that at the current rate of spending, Connecticut will spiral into a deficit that could reach $900 million - a number that could prove to be devastating to Connecticut’s economy.

Legislators need to address the skyrocketing energy costs in order to free up some money to fund projects, and every caucus is putting in its slightly different approach to catch the headlines. The Democratic Caucuses have stated that this issue needs to be addressed very cautiously as it is complex and no one want to make a mistake. Just this week, the Republicans introduced a very similar plan, but called on the legislature to introduce several small, specific bills to get the ball rolling. With every caucus wanting to take credit for solving the energy crisis, it is in the Democrats’ hands with their overwhelming majority to get it rolling.

So far, the word around the Capitol is that there will be one bill to address this issue this year and that bill still is in the development stage. Having a majority has its perks and ultimately, the heavily populated Democratic caucuses are positioned to set the direction on where CT goes in terms of affordable, available electricity. The trouble is that getting control of rising costs is not as easy as constituents want. That’s the challenge facing the legislature these days.

On the heels of the Senate Democrats’ announcement of their legislative priorities, the House Democrats followed suit. Both caucuses set access to health care and short term and long term solutions to skyrocketing energy costs as top priorities.

While specific language and the details are still scarce, the House Ds pledge to work toward accessible and affordable health care for everyone in CT, especially the more than 400,000 uninsured. Health care that is portable and preventative in nature is especially important to the house members. As for energy, the House Ds attention turns to diversifying energy sources and promoting alternative fuels, such as ethanol or biodiesel. Reforming the unregulated system for electricity is also on the radar.

The House Ds hope to build on last year’s transportation successes by concentrating on a multifaceted plan to “enhance Connecticut’s competitive edge in a global economy without sacrificing our quality of life.” This plan entails expanding public transit use, promoting policies to prevent urban sprawl, yet fostering transit oriented development, improving access to affordable housing, and improving air and water quality.

Property tax relief and public safety round out the House Ds top five. Increasing state funding of public education is the route proposed to lower property taxes for municipalities. They also aim to link property tax relief to smart growth. Strengthening public safety is a similarly complex agenda involving reforming the juvenile justice system, increasing police resources, and increasing funding for the expansion of after school programs.

Republicans seem to have taken a different approach to setting priorities than in the past. Rather than announcing specific solutions to proposals, they appear to be looking at what the majority party is announcing, and then recommending how that solution could be improved by changing or altering specific initiatives or dropping them all together. With veto proof majorities, this strategy may very well serve the remaining 55 Republican members well. Republican leader Larry Cafero is well respected for his interpersonal and political skills. Combine that with the ever so patient and proactive team of Senators DeLuca and McKinney, Republican leadership might have found the golden egg for success.