Gov. Dannel P. Malloy will use the final budget proposal of his tenure next week to urge lawmakers to close a nearly $165 million gap in next fiscal year’s finances and mitigate much larger shortfalls facing his successor.
State Budget
Posted inHealth, Money
Panel: CT could reap big savings with more competitive bidding
A new report asserts state government could save as much as $260 million per year — and potentially more in the future — by ensuring all service contracts are subjected to competitive bidding.
Posted inMoney, Politics
CT, NY and NJ to sue over tax changes that hit blue states
The Democratic governors of Connecticut, New York and New Jersey said Friday they will file a lawsuit challenging the constitutionality of new federal income tax laws restricting state and local tax deductions, a change that primarily falls on a dozen states that voted against President Trump in 2016. “Somebody has to stand up and say, ‘Not at this time. You can’t do this. It is fundamentally unfair and illegal,” Gov. Dannel P. Malloy said.
Posted inMoney, Politics
Town leaders: Further reform needed for pensions, school funding
Municipal leaders urged a state study panel Tuesday to support further restrictions on public-sector pensions, ending collective bargaining for retirement benefits and aggressively redistributing education aid from communities losing students to those gaining them.
Posted inMoney
Malloy says CT budget deficit worsens slightly
The projected deficit for the current fiscal year worsened slightly from $223 million to $240 million, Gov. Dannel P. Malloy’s budget office reported.
Posted inHealth, Money, Politics
Malloy vetoes Medicare program fix, calls it ‘wishful’ budgeting
In a largely symbolic act, Gov. Dannel P. Malloy vetoed a bipartisan bill Monday to reverse cuts to the Medicare Savings Program, calling it an unbalanced exercise in “wishful thinking” that only would worsen projected budget deficits.
Posted inMoney
Report: Personal income in CT, long lagging, fell last fiscal year
A recent analysis by The Pew Charitable Trusts shows Connecticut has been lagging the nation in personal income growth since the last recession. And most recently that meager growth has been slowing down.
Posted inMoney, Politics
Deficit, program cuts will test bipartisan CT budget deal
The legislative cooperation that produced last October’s bipartisan state budget deal could face its toughest test starting next week as legislative leaders begin trying to close a deficit and find more funds for health care programs and municipal aid.
Posted inMoney
CT income tax receipts surging, but most can’t be used to balance budget
State income tax receipts are projected to surge by $900 million in a report due next week. But because of new spending controls in the state budget, legislators can’t use the bulk of that to mitigate a $224 million deficit.
Posted inHealth, Money
Malloy would veto Medicare program fix as ‘budget gimmickry’
Gov. Dannel P. Malloy pledged Friday to veto the budget adjustment bill legislators are expected to adopt Monday, saying their plan to reverse cuts to the Medicare Savings Program exacerbates deficits already plaguing state finances.
Posted inHealth, Money, Politics
Medicare program fix adds red ink to CT’s finances
To find some of the money to reverse cuts to a popular social services program, the legislature is expected Monday to raid $17.8 million owed to next fiscal year’s state budget — which already is at risk of a significant deficit.
Posted inHealth, Money, Politics
Malloy tries to head off Friday’s special legislative session
Hoping to focus legislators on closing a $224 million state budget deficit, Gov. Dannel P. Malloy suspended legislatively mandated cutbacks to a popular social services program for seniors and the disabled until July 1.
Posted inMoney, Politics, Transportation
Malloy: Election politics must not stop transportation fix
Gov. Dannel P. Malloy renewed his push to bolster Connecticut’s transportation program in 2018, urging legislators Wednesday to resist the traditional election-year approach of dodging controversial topics.
Posted inEducation, Money, Politics
Malloy: Time to stretch out spiking teacher pension costs
Gov. Dannel P. Malloy has called on state lawmakers to restructure Connecticut’s contributions into its cash-starved teacher pension fund, deferring some expenses for decades but mitigating huge, projected cost spikes in the coming 15 years.
Posted inMoney, Politics
Federal tax changes further polarize debate over state income tax
Now that Congress has passed a massive federal tax overhaul, political observers here agree it could have a chilling effect on future proposals to raise the Connecticut income tax — even 14 months from now when a huge deficit looms in state finances. But liberals and conservatives were split over whether this is a good thing, as huge pressures are projected to test state finances in unprecedented fashion in the coming years.