Deep Cuts Proposed to Solve CT's Budget Woes

By RICH SCINTO (Patch Staff)

Gov. Dannel Malloy is at the table, along with legislative Democrats and Republicans, working to trim the state budget in an attempt to plug a projected deficit projection.

The negotiations were closed-door, but the Connecticut Mirror was the first to obtain documents detailing some of Malloy’s nearly $350 million in proposed cuts. CT News Junkie also obtained a now-public 36-page plan detailing proposals.

The current fiscal year budget gap is between $118 million to $330 million and projections for future gaps are worse, according to the Mirror. Malloy has said the cuts in comparison to the $20 billion state budget are relatively small and that it isn’t a crisis, according to the Hartford Courant.

Fiscal year 2016 will need to be adjusted by nearly $400 million due to revenue deterioration, according to Republican legislators. The upcoming biennium deficit is projected to be $2.9 billion.

Some of the reductions highlighted in the 36-page report include:

• Closing the Meriden and Bristol courthouses

• Closing State Police Troop I Barracks for a savings of about $1.38 million

• Closing Enfield CC prison would save $5.16 million, 22 full-time staff would be laid off and much of the staff could be transferred to other prisons

• Reduce municipal aid by $15.2 million

• Cut Department of Mental Health and Addiction Services budget by $10 million

• Cut Department of Social Services budget by about $27.56 million

• Cut Department of Education budget by $25 million

• Reduce hospital supplemental payments by $16.5 million

• Eliminate funding for various commissions on the elderly, children and minorities that would save about $1.48 million

Other proposed cuts would affect other state services, museums and theaters, to name a few.

Stuck in a Cycle of Financial Trouble

Republicans have put forward proposals that include more than $370 million in budget modifications for fiscal year 2016.

“Connecticut is stuck in a cycle of financial trouble,” House Republican leader Rep. Themis Klarides said. “If nothing changes, our state will continue to see deficit after deficit, with a shortfall of at least $2.9 billion already projected for the near future.”

She added that Republican leadership believes that Democrats and Malloy will support ideas.

The proposals would restore cuts made to social services through Malloy’s September budget rescissions and would be enough to close the current fiscal year budget deficit, according to Senate Minority Leader Len Fasano.

Saving on State Labor Costs

None of the immediate proposals include labor concessions. However, Republicans are looking to save on state labor costs in the future.

Some of those proposals include:

• Make all non-hazardous state employees pay 4 percent of salary toward pension benefit

• Cap cost of living adjustments for future retirees to a maximum of three percent

• Calculate final average salary for pensions using base pay only

• Transition new state employees to a defined contribution/defined benefit plan similar to Rhode Island

• Increase state employee health premiums and drug co-pays

Republicans estimate changes to health benefits and pension contributions would cost the average state employee an additional $7.66 per day.

• Read the full Mirror report here.
• Read the full News Junkie report here.

Image of Fasano, Klarides and Malloy