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Rell Wants Dec. 15 Special Session on Budget

Plan includes first cuts to cities and towns coffers

By Lauren Petty

| Wednesday, Nov 25, 2009 | Updated 2:06 PM EST

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Rell Wants Dec. 15 Special Session on Budget

ASSOCIATED PRESS

Connecticut Governor M. Jodi Rell (AP Photo/Jessica Hill)

Late Tuesday afternoon, Governor M. Jodi Rell released a 17-page deficit mitigation plan that she says would bring the state back in the black. On Dec. 15, the state Legislature will be deciding on her proposed cuts.

The plans released on Tuesday calls for about $337 million in cuts, including a three percent cut in municipal aid, which amounts to about $84 million. This is the first time the Governor has called for cuts in aid to cities and towns.

“Failure to swiftly address this budget shortfall will only lead us into a deeper hole – one that we cannot afford to close by borrowing more or raising taxes again. These are painful cuts, to be sure, but the Legislature must make them now to ensure that Connecticut returns to solid financial footing,” Rell said.

“The Governor has tried and indeed tried successfully last year to exempt municipalities from these reductions," Budget Director Bob Genuario. “With revenues continuing to decline, there cannot be any more sacred cows.”

“We were very surprised, stunned,” said Kevin Maloney, the spokesperson for the Connecticut Conference of Municipalities.

Maloney says this is bad news for cities and towns who have already passed their own budgets that counted on state aid.

“They are going to be forced to raise property taxes, possibly with supplemental tax bills in the middle of the fiscal year which really would be a crisis mode," Maloney said. "They could freeze spending, they could freeze services.”

Right now it’s not clear where cuts will be made and what that means for residents.

Rell also announced she plans to appoint a task force to determine the least painful cuts and look for ways to offset them.

Task force recommendations would need approval from the state legislature.

The Governor is also calling for an additional $116.3 million in cuts that would need legislative approval, including cuts to state tourism grants and changes to some Medicaid programs.

The mitigation plan also details about $16.8 million in cuts that the Governor has the authority to make.

Democrats say it will take a few days to go through Governor Rell’s plan, but admit there are tough choices ahead.

“The cuts going forward are going to be difficult, are going to be painful," said Sen. Donald Williams. "Most other states are going through this exact same process. I am committed to working with the Governor to help solve this for Connecticut's budget and to also get Connecticut’s economy back on track.”

Click here for a more detailed look at Rell's Deficit Mitigation Plan.

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