Malloy orders immediate cuts to balance current state budget - WFSB 3 Connecticut

Malloy orders immediate cuts to balance current state budget

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Gov. Dannel Malloy said he wants to take "aggressive steps" to balance budget. (WFSB file photo) Gov. Dannel Malloy said he wants to take "aggressive steps" to balance budget. (WFSB file photo)

The governor is calling for immediate budget cuts and emptying state reserves to balance the budget.

In a letter sent to Connecticut lawmakers, Gov. Dannel P. Malloy recommended taking "aggressive steps" to ensure this year's state budget ends in balance.

The fiscal year ends June 30 with a projected $389 million deficit. Malloy recommended the following deficit mitigation actions:

  • Rescissions (net improvement in balance) - $33.5 million 
  • Revenue Transfers - $ 99.5 million 
  • Other actions to mitigate the deficit - $22.6 million 
  • Budget Reserve Fund - $235.6 million 

Malloy said his "overriding goal is to solve this fiscal year's potential shortfall without engaging in deficit borrowing, particularly since the Economic Recovery Notes from the 2009 deficit will not be fully repaid until next year." 

In the letter, Malloy asked for "prompt consideration of this plan."  

"It requires actions we would all prefer to avoid, such as depleting the Budget Reserve Fund and sweeping funds that in better times would be used for important purposes," Malloy said. "However, I believe we all can agree that our constituents, our taxpayers, our creditors, and our employees all expect that we will decisively address our current year problem  and turn our attention to the greater challenge we face in the upcoming biennium."

It also seeks legislative approval to sweep revenue from dozens of state accounts and take other actions, such as not paying cities and towns over $19 million in June from the state's share of slot machine revenue at the two tribal casinos.

Connecticut Conference of Municipalities called this more of the same. 

"It's time our state policy makers stop shoving their problems onto property taxpayers and start doing things a different way," Connecticut Conference of Municipalities Executive Director Joe DeLong said. 

Malloy also proposed cuts to the judicial and legislative branches of government.

The last wave of cuts at the judicial branch was only a few months ago and forced the closing of two courthouses and roughly 300 layoffs. 

For the breakdown on the recessions per state department, click here

To see the governor's judicial recessions, click here.  

For more information about Malloy's recessions plan, click here. 

To see the governor's legislative recessions, click here.  

Copyright 2016 WFSB (Meredith Corporation). The Associated Press contributed to this report. All rights reserved.