Gov. M. Jodi Rell’s latest budget deficit cutting plan cuts from state agencies and taps into the state while avoiding layoffs and tax increases.
She presented her $1.1 billion proposal, and third plan to cut this fiscal year's stubborn budget deficit, Thursday.
The proposal uses nearly $282 million of the state's $1.4 billion Rainy Day Fund. It also assumes Connecticut will receive nearly $384 million this year from the federal economic stimulus package.
The plan includes numerous cuts to state agencies. But Rell, a Republican, says it does not call for state employee layoffs or tax increases.
There are reductions to health programs for the needy and elderly. Rell is also proposing expanded hours of alcohol sales at the state's two Indian casinos and an expanded bottle redemption law to raise more revenue.
Now, it heads to the Legislature. Democratic leaders said they want to identify $2.8 billion in potential cuts for the next two fiscal years because Rell’s two-year plan leaves a shortage of about that.
There are three estimates on the shortfall for the budget year, which ends on June 30, and Rell is using the one that falls in the middle for her proposal.
Estimates:
Local
Rell’s budget office: $921.7 million.
Office of the State Comptroller: $1.1 billion
Legislature’s Office of Fiscal Analysis: $1.3 billion
Rell is urging the General Assembly to adopt her deficit mitigation plan in its Feb. 25 session, which is supposed to be dedicated to deficit mitigation and passage of a retirement incentive plan.
