Cuts Coming After Budget Shortfall

Governor says spending cuts coming after $95 million shortfall.

Cuts are coming after a budget shortfall leaves the state with less money than projected.

There is a $95 million decline after tax revenue from higher wage earners came up short during the fourth quarter.

“We’re going to make spending cuts,” Gov. Dannel Malloy said. “We’re going to balance the budget.”

The governor won’t discuss specifics about where those cuts would come from.

Last year lawmakers and the governor cut a $3.5 billion deficit.

The shortfall comes after a surplus as well as $1.5 billion in new taxes.

“The answers aren't in revenue,” Republican State Rep. Larry Cafero said. “It's how much you spend.”

Malloy said he is confident the state will still end the year in the black.

“Instead of talking about a $3.5 billion structural deficit, we're talking about less than a half a percent of revenue,” Malloy said.

Cafero said that since no state workers can be laid off, there are concerns about where additional cuts could come from.

“The only place he can cut -- non-for profits that provide direct services to the public,” Cafero said.

Those cuts could be detailed in the coming weeks, according to the governor.

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