Malloy preparing to run state without new budget in place
Hartford — Connecticut legislators still have hope of reaching a budget agreement before the state's fiscal year ends next week, but Gov. Dannel P. Malloy said Wednesday he is moving ahead with preparations to run state government without a final plan in place.
The Democrat sent a letter to state lawmakers outlining the "principles" behind how he will maintain essential state services and obligations using his executive authority. Those principles include first allocating funds to support essential health, safety and human services for the state's most vulnerable residents and not increasing the state's projected deficit, which is $5 billion over the next two fiscal years. A typical two-year budget is roughly $40 billion.
"This would be a difficult and painful process. The amount of revenue that will be available falls well short of current expenditures," wrote Malloy, adding how increases in pension contributions, debt service and social services caseloads "far outstrip our resources."
Malloy said that means "any plan to allocate available resources would entail deep and difficult cuts to valued programs."
House Minority Leader Themis Klarides, R-Derby, said Malloy told lawmakers in a meeting Wednesday that some state programs could see a 17 percent reduction. Malloy said he will publicly release a detailed stop-gap spending plan next week, but noted there will be enough revenue in the short-term to keep state parks open without a budget in place.
The General Assembly adjourned its regular session on June 7, promising to pass a new two-year budget in a special session this summer. The current fiscal year ends June 30.
Legislative leaders and Malloy met privately Wednesday for about an hour on how to cover a projected $5 billion deficit in the new two-year budget. Both Democrats and Republicans said the meeting was positive and noted they'll convene again next week after discussing the various proposals and the ramifications of not reaching a budget deal by June 30 with rank-and-file members.
"We're all at least on the same page in regard to trying to move forward in doing this by July 1," Klarides said. "If it doesn't happen, the state will run, but it will be difficult."
Malloy said he didn't know if lawmakers can reach a deal by June 30.
"I've urged them to do their best," he said. "I have a budget that is balanced and ready to go. They could vote on that."
Some major issues still divide Democrats and Republicans, including whether Malloy's tentative labor concession agreement with state employee unions will save the state enough money. Malloy's administration predicts the deal, which has not yet been ratified by state workers, will save $1.5 billion over two years and more money into the future. The GOP has expressed concern about the deal extending the health and benefits portion of the agreement until June 30, 2027.
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