Malloy’s budget chief admits to $365 million state budget deficit

You are reading that correctly – despite the Governor denying this reality 48 hours ago, Secretary of the Office of Policy and Management, Ben Barnes, is addressing a legislative committee today and will admit that the state budget deficit is at least $365 million dollars.

In the days leading up to the election, the Malloy Administration stuck to their claim that the state budget deficit was $60 million.

Just three days after the election, the number they’d admit too increased by another $50 million.

But as Keith Phaneuf wrote in the CTMirror, and as was reported here at Wait, What?, the true deficit was at least $300 to $350 million.

A state budget of $365 million is, as Phaneuf writes, “nearly double the level needed to compel Gov. Dannel P. Malloy to prepare a deficit-mitigation plan, according to written testimony from Malloy’s budget chief.”

Barnes’ told the Legislature that, “All told, these changes result in a projected deficit of $365 million.”

Barnes was silent on why the Malloy administration provided State Comptroller Kevin Lembo with different, and inappropriately more rosy numbers just days ago.

Check back tomorrow for some more information about the budget deficit and why the Malloy Administration might have worked so hard to keep the magnitude of the problem secret for as long as they could…

The CT Mirror, CTNewsjunkie and other media outlets have updated stories on the budget deficit. You can find the latest details about the ugly budget situation at the CTMirror http://www.ctmirror.org/story/18201/malloys-budget-chief-confirms-365m-deficit-testimony-legislature and at CTNewsjunkie: http://www.ctnewsjunkie.com/ctnj.php/archives/entry/deficit_hits_365m/

JMC

Hmmm… who to blame: Roland, Rell? Time to pull out the Obama playbook. Bush? Or talk to Jerry Brown in CA – people there don’t seem to care about debt. Cap and Trade goes into effect there tomorrow. Maybe try to attract businesses fleeing CA? Hmm.. tough call. Lucky our CT AG is spineless. We’re covered there. Shared sacrifice worked last time. No hurry in any case. We’re all safe for a year and 50 weeks. Plenty of time to find the right narrative.
- JMC
  
  And the Courant is now reporting CT’s credit rating is 50th of the 50 states. And we’re lowest in job creation. Hope nobody dusts off that UConn study stating that the CT legislature is clueless about business or the way jobs are created! Oh well, still almost two years. Sure wish it was like hockey or football… in sports you don’t come in dead last unless you’re a total loser!
  - jonpelto
    
    We’re number 50
    We’re number 50
    Okay every one, join in – We’re number 50.
    
    I have an idea.
    
    What if we borrow the money to pay of the outstanding debt.
    
    That way we won’t have that old debt dragging us down.
    
    Next problem!
    
    Sent from my BlackBerry please excuss typos
    - JMC
      
      Geithner, Bernanke, and Barnes will sit wide-eyed at your feet, with their Ipods Jon, and type in every golden word!
    - JMC
      
      Or how about this one: tell people we’re going to borrow the money to pay off the debt, get the go-ahead, and then take the borrowed money and spend it!
    - jonpelto
      
      Whoa! Even better. Yes, yes! That is just the thing.
      Sent from my BlackBerry please excuss typos
    - JMC
      
      It will be just like Social Security! Just put a paper IOU called a Treasury Bill in the “LockBox”. We take the out the money and spend it, our great-great grandchildren get stuck with the actual repayment, and we all feel good about our accomplishment! Repeat as needed until China says “Enough!” Or until we have bartered away our sovereignty, borders, national security, armed forces, and entire heritage, including our freedom.
    - Rich White
      
      With the stock market pullback we are back to zero returns on the pension fund for the 2012-13 fiscal year. That was after no returns for the 2011-12 fiscal year. These 8.25% projections are starting to crater by any and all measurements. The Dow is up 9% plus dividends since the turn of the century, The Nasdaq down 27% and offset some by dividends.
      We’ll pretend solvency for another 2 years while the ObamaCare mandates and Federal cuts take their toll .
  - JMC
    
    Guess we’ll have to go again with Shared Sacrifice and Tax The Rich but then stick it to homeowners, small business, and the middle class. Why those three? Well, like bank robber Willie Horton said of banks, “Because that’s where the money is!”.
jschmidt2

It’s beginning to sound like Carney/Rice in the Obama admin
- jonpelto
  
  I’m just glad we’re getting sex back onto the front page. —- and the best was seeing Newt commenting about it yesterday.
  I just want one of these guys – on either side – to say something like
  “Been there don that”
  
  Or
  
  “my mama told me people on glass houses shouldn’t throw stones”
  
  Or
  
  “If it was good enough for the Oval Office who am I to say its not good enough for the CIA Director’s Office”
  Or
  
  “30,000 emails? – How the hell did the guy oversee the entire Afgan Military Theater and have time to send that many emails?”
  Meanwhile 20 points for naming the 80s rock group that sang, “I love a man in a uniform.”
  
  Sent from my BlackBerry please excuss typos
  - George P
    
    Who are The Gang of Four, Alex?
JMC

I have just learned from someone who was at a meeting that Malloy is eyeing the cash that has been contributed by teachers themselves into a retirement fund – a fund required by the State – as a resource to loot for monies to cover the State’s fiscal ills.
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Jenn

The fact is that in 2008/2009 the legislature and then governor decided to pretend that this was just like every other recent recession and that it would would end quickly. The burned the furniture for heat and forged ahead as if everything was just fine. Mr. Malloy and his team even suggested that this was the case because it is human nature to hope for the best.

They have failed to learn their lesson. Everyone should see what is coming if they fail to take drastic action: missed payrolls, late transfer payments, and dramatically increased borrowing costs. Further, if they fail to address the pension mess in the next five to ten years, they will either have to welch on pension guarantees to retirees, or dramatically slash state employment levels, aid to cities and towns, ecs grants, AND dramatically raise taxes.

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