Governor Warns State to Expect Hundreds of Millions in Cuts

Gov. Dannel Malloy said unequivocally on Tuesday that the state budget will be whittled down significantly from last year's numbers.

“There’s more than enough pain to go around, and they are serious cuts. There’s no way around it," Malloy said.

He didn't offer up details on what those cuts will look like or which agencies will see the biggest reductions but did say he doesn't have a choice given the state's current revenue situation.

Nonpartisan budget analysts have projected an operating deficit of over $1 billion next fiscal year and an even greater deficit in the following year.

The governor will present his two-year budget proposal to a joint session of the Connecticut General Assembly on Wednesday.

“Obviously, I have to present what I believe is a balanced budget and by the time we’re done in June, we have to have a balanced budget, and so we will," he said.

Cuts could have an impact on state funds for municipalities, funds they rely on during brutal winters like the one Connecticut is experiencing now.

"Right now I have this year in public works the same people that I had in 1989 but I have 100 more miles of road," South Windsor Town Manager Matthew Galligan said. "I have more parks to take care of more streets to clean and we’ve used all the technology so any cut to our staff or our services would devastate our local government."

The governor has used the weeks since his inauguration to drum up support for several proposals, including a transportation overhaul, criminal justice reforms aimed at non-violent offenders, and more recently, a cut to the state's sales tax rate.

Malloy used the sales tax issue as a way to start the conversation about what he referred to as "re-stacking the tax code."

“The budget is a tough document. It cuts hundreds of millions from a same service budget comparison," he said. "On the other hand, I like to get a lot of things done at the same time and re-stacking our tax system to be fairer to the middle class seems to be fairer to the middle class right now.”

The governor said there would be "some surprises" but didn't allude to specifics such as potential tax hikes for wealthier individuals, which have been proposed in other Democratic-controlled states as well as by the president.

He said sales tax cut over the next two years would put more money in people's pockets while simultaneously adding more revenue to the state's coffers by virtue of increased spending in-state, and by urging more out-of-state shoppers to stop in Connecticut.

A cornerstone of the budget address will be the governor's multi-billion-dollar plan to overhaul all elements of transportation in Connecticut. He has spoken about the need for an "adult conversation" on the topic since the middle of January.

“I think they’re going to look at what we’re saying about transportation [and] take a deep breath because our under-investment in transportation has been staggering over the long term over the past 50 years," Malloy said, "and I’m actually going to show you what you need to spend if we’re going to straighten this mess out.”

The governor is expected to provide details on how to pay for the overhaul as well as what his proposed constitutional amendment will look like.

On education, the governor said his budget proposal will "stay the course" on reforms he supported during his first term.

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