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Rell Says No Budget Surplus


by turfgrrl


May 1st, 2008 · 8 Comments

Yep, now its official, Connecticut is in a budget deficit. Of course, if they had acknowledged factoring unfunded pension liabilities all along, Connecticut has been operating with a budget deficit for years. But details are something Hartford’s government flunkies don’t do all that well. The local impact of the red state phenom below:

The rapidly changing budget landscape has left many local lawmakers frustrated.

State Rep. Christopher Perone, D-Norwalk, had been pushing for the elimination of the annual $250 business entity tax to give small firms a break in a tough economy.

“It doesn’t look good for that,” he said.

The deficit also jeopardizes the Stamford delegation’s efforts to obtain additional money for the struggling Stamford Center for the Arts.

Area lawmakers and mayors also had hoped the General Assembly would find additional money to fully fund payments in lieu of taxes for state-owned properties, schools and hospitals.

Bridgeport Mayor Bill Finch, a Democrat, traveled to the Capitol yesterday to persuade legislative leaders to find the money in the budget.

“Our message was we’re in a lot of pain on our own,” said Finch, whose current budget proposal raises property taxes 9 percent. “Don’t try to keep seven special interest groups happy. . . . The most important thing is making sure your cities don’t have financial stress.”

Rell told reporters she understands the mayor’s complaints and she is fighting the same battle with the federal government over cuts in state aid.

Democrats and Republicans yesterday said they are at least trying to find a way to restore $19.7 million in reading grants for 16 cites and towns, including Stamford and Norwalk.

Lawmakers had cut the money last year because they were concerned it was being wasted on ineffective programs.

Legislators this session proposed spending an additional $500,000 for monitors and audit programs.

“That’s the frustration,” said state Rep. Carlo Leone, D-Stamford. “You get agreements. It’s in (the budget). Now all of that is suspect. To do all that work - it’s just very frustrating.”

source: Advocate, Rell: Connecticut is in the red, By Brian Lockhart, May 1, 2008

Tags: Connecticut · Economy

8 Responses so far “Rell Says No Budget Surplus”



  • 1 Anonymous // May 1, 2008 at 4:51 pm

    So much for the surplus! I wonder how it disappeared. That’s why they call it Corrupticut!

  • 2 old timer // May 1, 2008 at 9:06 pm

    When it sounds too good to be true, it usually is.

  • 3 nobody // May 1, 2008 at 9:09 pm

    If the surplus wasn’t there in the 1st place, how can it’s disappearance be corruption? I think the original appearance of a “surplus” is more interesting. I hope that we don’t top the accounting tricks that NJ used with its state pensions.

  • 4 Viennab blue // May 2, 2008 at 7:31 am

    I understand that some of the budget deficit is from non-refunded funds (medicare, etc) from the feds. Does anyone know when this money is expected to be reimbursed to CT? Will we then go back to having a surplus???

  • 5 Rep. Chris Perone // May 2, 2008 at 2:45 pm

    Viennab blue,

    The $82.5 million in outstanding federal Medicaid payments is actually comprised of two sums of money.

    $32.5 million of the payments is a result of CT. having changed its Medicaid rates last year. These changed rates have to be approved by the federal government. If that approval happens in the near term, you could see the $32.5 in ‘08. If not, then sometime in ‘09.

    The other $50 million is a part of the $100 million in expenditures as a result of the recent Husky transition. The short answer to your question is that we will be seeing that money in 2009 as patient bills are submitted for payment.

    The budget deficit is a combination of several factors: The one you mentioned above, a drop in tax revenues due to the loss of jobs and a decline in capital gains revenue due to the volatility on Wall Street. There are additional factors as well but those are the broad strokes. As these areas improve, so too will CT’s financial picture. I hope that helps to clear up some of your questions.

  • 6 Anonymous // May 2, 2008 at 3:20 pm

    Thank you Chris.

  • 7 Unsavvy1 // May 2, 2008 at 3:23 pm

    An additional factor would not be overspending would it?? And no doubt more lost jobs will be on the horizon if the forced sick pay bill is passed. And I guess our chances of getting even the slightest bit of our fair share of state aid is now gone (as if it ever really existed).

    I can’t wait to read all the upcoming campaign literature patting yourselves on the back for the great job you’re doing.

  • 8 Vienna blue // May 3, 2008 at 1:45 pm

    Thank you for the additional information. Belts are being worn tightly this year, lol.

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