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    Editorials
    Monday, May 13, 2024

    Don't forget pledge

    Was Gov. Dannel P. Malloy duplicitous in waiting until after the election to announce that his administration has to trim spending to forestall a deficit in the current fiscal year budget, which runs through June 30?

    A tad duplicitous perhaps, but his political sin is hardly grievous. In late October the Office of Fiscal Analysis (OFA) reported it was tracking about $80 million in potential cost over-runs. At the time, the governor downplayed the warnings as premature, which they arguably were, representing just 0.4 percent of the state budget just one-quarter into the fiscal year. It is hard to imagine any incumbent governor sounding alarm bells about a budget hiccup just a few days before an election.

    On Thursday came more evidence that the administration is wrestling with the budget, with the OFA and the administration agreeing that revenues are running $59 million below projections.

    In a memo issued by Office of Policy and Management Secretary Benjamin Barnes to all agency heads, which was obtained and reported on by The Connecticut Mirror, Mr. Barnes ordered a freeze on hiring unless a position is judged critical. Also announced were caps on the use of overtime and limiting the signing of any new Personal Service Agreements with private contractors to services necessary for essential operations.

    These are typical actions for a governor trying to keep a budget in line. Gov. Malloy has the authority to reduce accounts up to 5 percent of the budget, about $950 million, before he would have to turn to the legislature for help.

    In an Oct. 20 meeting with The Day editorial board, Gov. Malloy alluded to a reviving economy, a resulting increase in tax revenues, and his administration's ability to limit government growth, as the reasons why he was confident he would not face a $1.4 billion deficit in the fiscal year that begins July 1, 2015, as forecast by OFA.

    However, the financial problems in the current fiscal year, though at this point relatively small, suggest those rosy revenues have not arrived and that controlling government spending is proving difficult.

    Gov. Malloy said on the campaign trail he will not raise taxes. He needs to stick by that position. A tax hike now would inhibit a recovery that appears to be gaining traction. Avoiding higher taxes will require making some tough choices in setting priorities, including where to cut spending. It's the job he was rehired to do.

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