The Register Citizen (Torrington, CT)
Malloy asks legislature’s help in cutting deficit
>> Connecticut might have a $5.1 billion deficit for the next two years, but it also has a $389.8 million deficit this fiscal year, which ends June 30.
The hole is too big for Gov. Dannel P. Malloy to fill on his own so he needs the legislature’s help to pass a deficit mitigation plan and avoid borrowing.
“Given recent revenue projections showing the state facing a potential shortfall, I find it necessary to take aggressive steps to ensure this year’s budget ends in balance,” Malloy said in a letter Wednesday to legislative leaders. “My overriding goal is to solve this year’s potential shortfall without engaging in deficit borrowing, particularly since the Economic Recovery Notes from the 2009 deficit will not be fully repair until next year.”
Malloy’s proposal would cut about $33.5 million in spending from executive branch agencies. It would transfer about $99.5 million in revenue from other offbudget accounts, withhold $19 million from cities and towns, and use the rest of the $235.6 million to help erase the deficit.
Malloy is also asking the judicial branch to find another $21 million and the legislative branch to find about $3.4 million in spending reductions.
The judicial branch is expected to find the savings through labor costs, but it won’t involve any layoffs.
The branch, through a spokeswoman, said they were able to find $18 million in savings from scheduled collective bargaining increases that won’t be expended this year and another $3 million from keeping positions vacant after employees leave voluntarily.
Legislative leaders had just received Malloy’s proposal and were unprepared to comment.
This story has been modified from its original version. To view the original, visit ctnewsjunkie.com.