Rell Turns Over Tentative Conn. Budget To Malloy

HARTFORD (AP) — Republican Governor M. Jodi Rell turned over a tentative two-year budget plan to the Democratic governor-elect on Monday, and the numbers aren’t pretty.

Some of the potential budget-cutting ideas offered by Rell’s administration aren’t pretty, either, such as increasing the state retirement age, imposing additional furlough days for state employees, paring back bond funds for higher education and local school construction projects, and capping certain state grants to cities and towns.

The budget framework, presented to Dan Malloy’s chief of staff in a private meeting with Rell’s budget officials, confirms that the new budget year that begins July 1 is forecast to be $3.44 billion in deficit. The report warns that the slow pace of Connecticut’s economic recovery is not expected to help bridge that gap and calls the fiscal decisions facing the state “daunting.”

“We’ve just got to roll up our sleeves and figure out the best way to close a $3.4 billion gap. That’s a big, big number,” said Tim Bannon, Malloy’s chief of staff. Bannon called the budget valuable information that’s “a piece of the puzzle” needed to help Malloy build the state budget he must present in February.

The 94-page plan shows that spending projected for the new fiscal year is $1.34 billion above the state’s constitutional spending cap, partly because of cost-of-living increases, inflationary adjustments, and scheduled pay raises.