Connecticut got a spark of encouraging news when it came to the budget. The state budget deficit may not be as bad as expected.
New numbers from the Gov. Dannel Malloy’s administration scale back the deficit by more than $25 million.
In November, the Office of Policy and Management projected the deficit around $68 million, but now believes it's about $41 million, which is a difference of about 26 million.
"We had some limited good news yesterday with respect to our expenditures,” Malloy said. “I hope things will turn out OK."
Malloy said cost cutting measures have helped reduce the deficit, but it's just the beginning. Next year's deficit was expected to be almost $1.5 billion.
Malloy has already said he will not propose any major tax increases, which means deep spending cuts are sure on the horizon.
"Anytime you make cuts and reductions, you ballpark what savings will be,” Incoming House Speaker Joe Aresimowicz said. “Now that real numbers coming in it shows we can tighten our belt."
Republicans predict a rough session. The GOP will have more power this year as they gained seats in the house and in the senate, there is now a tie.
Republicans said they feel the real solution must be long term not year to year.
"This is just piling on at this point,” Minority Leader Themis Klarides said. “Unless you put budgets together without really changing anything structurally in the state, you keep having deficits and making cuts and then there isn't much to cut anymore."
When asked about the budget, the governor said revenues seem to be stabilizing, which is also encouraging, but we will have a better picture in mid-January when more numbers come in.
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