Malloy stated in his plan that the overriding goal is to solve Connecticut’s fiscal shortfall without using deficit borrowing. To make up the $389.8 million deficit, Malloy recommends taking $235.6 million from the State’s Budget Reserve Fund, along with an additional $33.5 million in budget cuts.
Related Content: Layoff notices looming with no concession deal
The plan also calls for $99.5 million in revenue transfers, and what Malloy’s plan calls “other actions to mitigate the deficit”, with $22.6 million in savings as a result of those actions.
The revenue transfers and other actions will require approvals from the legislature. In his letter to state leaders, Malloy said that these steps are absolutely necessary to address Connecticut’s immediate budget problems.
Thank you for your 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 bette rtime would be used for more important purposes. However, I believe we can all 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.
A complete list of the budget rescissions are available here.