Rowland Freezes State Jobs;

Budget Deal Questionable

By Susan Haigh

Associated Press

HARTFORD –– The governor’s budget chief ordered all government agencies Tuesday to not fill any vacant state jobs, as he prepared for a possible budget impasse as the new fiscal year looms.

Meanwhile, local school boards and Medicaid providers, such as hospitals and doctors, are already feeling the effects of Connecticut’s fiscal problems.

Budget chief Marc Ryan said the state had to cut off about $6.5 million in special education grants and $70 million in Medicaid payments because there is not enough money left in the current fiscal year.

Those payments will likely be made once the General Assembly passes legislation in a special session covering the deficiencies through short-term borrowing and money transfers from other accounts. Legislative leaders and the administration, however, have not yet agreed on the wording of such a bill or when to schedule a vote.

Mr Ryan blamed Democrats for holding up the deficiency bill.

House Speaker Moira K. Lyons, D-Stamford, said it was ironic that the administration is concerned about paying for local special education and Medicaid needs this year, “but not about funding those programs next year.”

Negotiators are facing a June 30 deadline to revise the biennial budget passed last year, and to close a two-year deficit estimated at $1.6 billion to $1.8 billion. They have managed to cover much of the red ink and now differ on how to come up with about $450 million next fiscal year.

Both sides had been expected to resume bipartisan negotiations Wednesday. But Ms Lyons said talks might not restart until Thursday or Friday. She said Democrats are working without Republicans to come up with spending reductions.

“We will go in and speak with them when there is something to discuss,” Ms Lyons said. “It’s productive to go through and come up with a bottom line. That’s what we’re doing. We’re in the room actually working. I would think that they would be doing the same thing.”

Mr Ryan sent a letter to state commissioners Tuesday advising them to freeze all vacant state jobs. He estimated that several hundred full-time vacancies would be affected. The administration has imposed job freezes in the past, but Mr Ryan said this one is more serious because there are few to no exemptions.

Mr Ryan said freezing the vacant jobs cleared the way for laying off workers. Gov John G. Rowland can cut positions if no agreement is reached on a revised budget for 2002-03.

“There will be layoffs. They’ll have to cut back state government,” Mr Rowland said at a ribbon cutting ceremony in Hartford. Mr Rowland said layoffs may be across board, including public safety. He mentioned how former Gov Lowell P. Weicker, Jr, laid off state troopers when he had to deal with budget problems.