Connecticut Governor Pitches Legalizing Marijuana, Other Measures in Budget

Mr. Lamont, a Democrat, also called for banning flavored-vaping products and instituting a new excise tax on non-flavored e-cigarette merchandise. He also once again asked lawmakers to consider adding highway tolls to pay for investments in the state’s aging transportation system.

The second-year governor said the state’s rainy-day fund—projected to reach a record $2.8 billion this year—was a sign that Connecticut was finally getting its fiscal house in order. He urged lawmakers to take a more positive outlook after several tough budget years and a slow economic recovery from the last recession.

“No more bad-mouthing the great state of Connecticut,” Mr. Lamont said during his state of the state address Wednesday.

Mr. Lamont’s proposed budget for the year that begins July 1 increases spending by 3.8% over the current fiscal year.

While the growing rainy-day fund was an encouraging sign for the state’s finances, Melissa McCaw, Connecticut’s budget chief, said lawmakers should resist the urge to use it to pay for more spending.

“This administration and Gov. Lamont feel that it is critically important that the budget reserve fund not be tapped and that we are in the position to weather any economic downturn,” Ms. McCaw said during a press briefing.

The governor, who has called for the elimination of religious exemptions for vaccinations for school children, also said the state needs a “thoughtful vaccination program” to keep families safe. Hundreds of people who oppose eliminating the vaccination exemption rallied at the state capital Wednesday to protest the proposed change.

Mr. Lamont, like the Democratic governors in New York and New Jersey, unsuccessfully pushed to legalize marijuana last year.

He said the state is still under pressure to get it done after neighboring Massachusetts legalized the drug and said Connecticut should coordinate its marijuana regulations with other states in the region.

“Like it or not, legalized marijuana is a short drive away in Massachusetts,” Mr. Lamont said. “Coordinated regional regulation is our best chance to protect public health by displacing illicit sellers with trusted providers.”

The governor’s new vision for economic development includes a new tax-credit program for businesses that add at least 25 full-time jobs in the state. That program would cost the state $40 million annually.

The Lamont administration will continue to fight for highway tolls to pay for transportation improvements after the legislature rebuffed his proposal last year, the governor said. Now Mr. Lamont supports a plan where only heavy-commercial trucks will pay the user fees.

Legislative leaders are expected to vote on tolls the week of Feb. 18. Both chambers in the state legislature are controlled by Democrats.

Republican Senate Minority Leader Len Fasano, who opposes tolls, told reporters it is unclear if there is enough support to pass the bill. “I think it’s in flux,” he said.

Write to Joseph De Avila at joseph.deavila@wsj.com