The state budget deficit for this fiscal year is estimated at $365 million and the state Office of Policy and Management on Wednesday released a list of $170 million in cuts from state agencies.
The governor is planning to cut $161,694,693 from the executive branch agencies, while the legislative leaders have agreed to $3 million in cuts and the judicial branch agreed to $5.75 million in rescissions.
“There is no one reason for the projected shortfall,” OPM Secretary Ben Barnes said in a statement. “The sluggish national economy is part of the equation. Revenue hasn’t recovered as it has in the past when Connecticut was working to climb out of a recession. The demand for services, particularly Medicaid, remains higher than expected. But we have faced larger challenges than this, and done so responsibly. Nothing on that front has changed.”
The cuts are far reaching and the list is 10 pages long.
“Many of these cuts are very difficult to make, especially now when so many residents continue to struggle in a tough economy,” Barnes said in the statement. “But as painful as they are, cuts are necessary to keep this year’s budget in balance. State government needs to live within its means.”
Barnes warned that there are more, “even tougher choices ahead” and said a legislative proposal on deficit mitigation is coming in December.
“We are working on a Deficit Mitigation Plan that will completely erase the projected deficit. We hope to work with legislative leaders of both parties on a package that responsibly manages our state’s financial challenges.”
You can see the full list here.