Connecticut Governor announces $102M in budget cuts

- FILE - Connecticut Gov. Dannel P. Malloy meets with the media in his office after signing the budget in his office at the State Capitol, Tuesday, June 30, 2015, in Hartford, Conn. (AP Photo/Jessica Hill)

HARTFORD, Conn. (WTNH) — Governor Malloy is announcing a round of state budget rescissions that amount to over 100 million dollars in spending cuts in his new state budget. It comes just days after the State Comptroller announced the budget was on track to have an 800 million dollar surplus.

So what gives here?

This is a .05 percent cut in the $20 billion state budget, but the Governor’s office says it’s the prudent thing to do. The Stock Market is having another down day Friday. It’s been up and down for the past couple of weeks, but since May it is down 6 percent.

Related Content: Complete list of Connecticut Budget Cuts

Because a large portion of Connecticut Income Tax receipts come from ‘Capital Gains’ it’s reasonable to expect that revenue projections made earlier this year when the state budget was passed will be wrong.

“We know that that (the stock market) has income, that’s an income variation predictor for us. That doesn’t mean that that won’t recover between now and the end of the year but if it was not to recover it means we’d have less money coming in because about $3.7 billion of our revenue is in some way tied to the economic markets or the commercial markets,” said Governor Malloy at a stop in New Haven today.

Social Service Agencies will take the biggest hit, 64 million, that’s mostly Medicaid. 8.5 million from the Department of Mental Health and Addiction Services. 7.5 million from the Department of Developmental Services.

See the complete breakdown here.

WTNH NEWS8 provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Commenters who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review. Also, you can now block any inappropriate user by simple selecting the drop down menu on the right of any comment and selection "Block User" from there.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s