Malloy signs new CT budget into law

Gov. Dannel P. Malloy signed a controversial $19 billion budget Friday for the fiscal year that begins July 1.

The governor touted new funding for pre-kindergarten programs, municipal aid and public colleges and universities in a budget that boosts spending just 2.5 percent without raising taxes.

“I think there is much in the budget we’re proud of,” Malloy said.

But that package relies on about $200 million in fund sweeps, risky savings and revenue assumptions – including the last-minute discovery of $75 million in “miscellaneous” tax receipts.

Nonpartisan fiscal analysts are projecting a $1.33 billion deficit in the first state budget after the election, a gap of more than 7 percent.

The new budget also delays planned tax cuts for teachers and consumers and cancels the launch of keno gaming.