Municipal aid takes biggest hit in latest Malloy budget crisis plan

- FILE - Connecticut Governor Dannel Malloy (WTNH)

HARTFORD, Conn. (WTNH) — 113 state employees have received layoff notices in the first round of what may result in thousands in the weeks ahead.

Layoff notifications will continue on a daily basis as the unions continue to meet to reach a concession deal.  88 at the Department of Social Services, 22 at the Department of Energy and Environmental Protection,  3 at the State budget office itself.

The state employees unions say they are continuing their exploratory talks on concessions this week. The Governor says in his revised budget plan that he still needs $700 million in concessions, and he needs it now saying,  “We need to reach it in the coming days….not weeks.”

According to the Malloy Administration, 113 state employees received layoff notices on the same day Malloy revised his budget plan.

The layoffs so far include both union and non union positions.

The Governor is now asking for the same sacrifice from most of the cities and towns.  His plan cuts an additional 350 to 400 million in municipal aid, bringing those cuts also to about 700 million. Only Hartford and the fifteen largest communities get more.

Related Content: Malloy: layoffs begun, legislative leaders don’t want to do hard things

Malloy said that the moves are to prevent smaller towns from bankruptcy.

We can’t afford to force communities into bankruptcy. I think that would be very detrimental to the state overall.”

In one compromise with state lawmakers, Malloy’s plan still calls for cities and towns to contribute $400 million per year to teacher pensions, but that amount would be capped at 400 million. When asked what he would do if he were running a town facing cuts in municipal aid, he said, “I would do what I’m asking state employees to do; and that is to be part of the answer.”

The Governor’s plan also cuts funding for the state parks by about a third, which will result in fewer or no state employees at smaller parks. He insists staffing at larger parks, like Hammonassett and Rocky Neck will remain.

Related Content: Democrats, Republicans concerned about Malloy’s budget cuts

The Governor is calling for a tax hike that will affect just about everyone, because he says most people won’t notice.

Most people assume they’re paying a tax on these things so it didn’t seem disruptive.”

He’s talking about eliminating the Sales Tax exemption for over-the-counter cold, allergy, headache and all non prescription drugs.  And he wants to increase the Real Estate Conveyance Tax on homes that cost more than $800,000.

Democrats and Republicans in the Assembly are scheduled to release their budget crisis solving plans tomorrow with all sides getting back to the budget bargaining table on Wednesday.

You can see the complete details of the Governor’s plan here.

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