Governor Asks State Colleges To Cut $9 Million

HARTFORD (AP) — Gov John G. Rowland is asking the state’s public colleges and universities to cut $9 million from their budgets because of concerns that the state will exceed its spending cap.

The cuts represent about 2 percent of the state’s portion of budgets for the University of Connecticut, the Connecticut State University system, and the state community colleges. The governor notified other state agencies of similar budget cuts last week, but sent out orders to the colleges over the weekend.

Gov Rowland’s budget chief, Marc S. Ryan, predicted the state’s current budget could exceed a constitutional spending limit by more than $125 million. State Comptroller Nancy Wyman put the estimate at nearly $175 million.

The governor ordered UConn to cut $3.5 million, CSU $3 million, and the community college system $2.25 million. Charter Oak College, a small, degree-granting agency, was told to trim $55,555, including $25,555 from an online education project.

Top college and university officials are scheduled to meet Wednesday with Mr Ryan to discuss the effect of the cuts.

The higher education department was asked to trim more than a half million dollars from its $11.8 million state appropriation. Those cuts would reduce the state’s Capitol Scholarship Program. Officials said the state has awarded those scholarships, and the governor’s office has instructed the department not to take any immediate action to withdraw any awards.

Ms Wyman said if estimates hold, the state will exceed the state’s constitutional cap on spending for the fourth year in a row. That is mainly the result of the state Department of Social Services overspending its budget by $131.7 million, she said.

“There is clearly a problem with financial mismanagement when the normal, day-to-day operating expenses of the state threaten to exceed the spending cap just a few months into the new fiscal year,” Ms Wyman said.

The spending cap, a complicated formula under which spending increases are tied to the inflation rate, allows for a 5.48 percent increase in spending this year. The $12.3 billion budget approved by the Legislature and signed by Gov John G. Rowland is about $50 million below the spending cap, but Ms Wyman said spending could exceed the cap by as much as $77 million.

As in previous years, the spending increase will not result in a deficit, because tax revenues generated by the booming economy are once again expected to surpass initial estimates, Ms Wyman said.