CT facing budget deficit, Malloy looking to make cuts [WFSB]

January 23, 2015

WFSB 3 Connecticut
HARTFORD, CT (WFSB) – The latest estimate sets the state’s budget deficit at $121 million, and it is forcing the governor to order a second round of budget cuts.

Governor Dannel Malloy made more than $50 million in concessions in November and now he is faced with doing that again.

However, Republicans said the real way to make cuts is for everyone to be at the table.

Republicans also said they feel that Malloy has not been truthful about the state’s financial problems, and they don’t like his solution either.

“We need to sit down and say we have this problem together let’s talk about it – let’s solve it and come to a conclusion but doing it by nibbling at recession is not the appropriate way of doing it,” said Republican State Senator and Minority Leader Len Fasano.

He said he wanted to start budget talks weeks ago, but was told that the state was waiting for revenue projections.

Those numbers are now in and it is mixed bag.

Gas tax numbers are down because gas prices are down. The state collects a percentage on the price per gallon and the biggest drop comes from taxes paid by oil companies.

A brighter picture shows that sales tax revenues over the Christmas holiday were up $10 million.

Malloy said he is still waiting for what republicans are willing to put on the table.

“Republicans seem to be concerned about the increase in the budget deficit, but you seem to be less concerned,” Malloy said. “I am concerned more with the implications for next year’s spending in the budget than I am with how we meet our targets which we have routinely met every single year.”

Malloy added that he expects to have his list of recessions soon.

In addition to the $121 million deficit, the state is still facing a budget shortfall of more than $1 billion next year.