Next Year’s Connecticut Budget Deficit? $1.1 billion – Yeah, B – as in Billion….

Nov 15

jonpeltoBen Barnes (OPM Secretary), Budget Cuts, Malloy, State Budget, State Legislature, Taxes , , , 36 Comments

Governor Malloy and Connecticut state government will face a projected budget deficit or revenue shortfall of $1.1 billion next year.

Later today, Malloy’s budget office and the General Assembly’s Office of Fiscal Analysis will be submitting their mandated annual fiscal projects about revenue and spending.

The Malloy Administration’s $60 million projected deficit in the days leading up to the election has become a $365 million deficit.

And the projected deficit for next year is now set at $1.1 billion.

As Keith Phaneuf of the CT Mirror writes, “since the governor and legislature must balance the current books and craft a new two-year spending plan this spring, that means they must wipe nearly $2.5 billion in real and projected red ink off the state’s books before the 2013 session ends next June.”

The massive fiscal problem comes after the Governor and Legislature adopted $1.5 billion in new taxes last year, while making significant budget cuts and achieving state employee concessions.

Phaneuf goes on to note, “The administration’s two-year estimate exceeds $1.9 billion in red ink. Just nine months earlier, members of the administration said the state could look forward to surpluses totaling more than $1.1 billion over the same two-year period — a $3 billion shift for the worse.”

Earlier this year, the Malloy Administration projected that the State of Connecticut would have a “$226 million surplus in 2013-14 and a $942 million in the final budget year of Malloy’s term.”

Here are the latest links to news stories about the projected deficit:

CTMirror: http://ctmirror.org/story/18217/ct-projected-deficit/

CTNewsjunkie:  http://www.ctnewsjunkie.com/ctnj.php/archives/entry/cts_budget_goes_from_bad_to_worse/

Courant:  http://courantblogs.com/capitol-watch/state-looking-at-red-ink-for-next-3-years-cafero-says-its-not-transparent/

 

Be Sociable, Share!

  • mookalaboona

    We need to get him out. He feels he is the governor of the United States, but couldn’t run Stamford. He gives his rich buddies breaks, and goes after teachers. I can’t stand this guy. Recall Malloy

    • msavage

      If only we had the ability to recall in CT….

      • JMC

        We did – on Nov. 6th. And CT citizens voted for more of the same, even while the CT Dem machine criminally masked the fact that CT is drowning in debt until a week after the election. (“But they’re not as bad as Rowland/Rell because.. [fill in blank]“).

      • msavage

        We’re talking about the governor here. Don’t believe old Dannel was up for re-election (or not) on Nov. 6.

      • JMC

        Dannel criminally concealed the huge deficit – with Dem legislative connivance – so that the blue Dem legislature would be re-elected. He can now claim that they owe him big-time. As politicians they already know this. They will make noises that they deplore Malloy’s actions even as they rubber-stamp his programs – just as they did in the last 2 years. One hand washes the other. These folks may be likeable as individuals and seem to lend a sympathic ear to their better informed and concerned and unhappy constituents, but in the collective they are viral and destructive. Our Founding Fathers knew this well, being a constellation of geniuses. Another reason why Dems don’t mention the Founding Fathers a whole lot. Except to stigmatize them as slave owners and racists.

      • JMC

        Read “sympathetic” for “sympathic” in my post above.

      • msavage

        “a constellation of geniuses,” huh?

    • Linda174

      Let’s all pray for a federal appt. where he can’t do too much damage…Ambassador to the Vatican. See ya..Dannel and take Roy O with you….he needs some counseling.

  • Wilton Businessman

    His problem is going to be people bought into the “Shared Sacrifice” campaign of a couple years ago. The Makers of Fairfield County will once again end up supporting the Takers in Hartford. Except this time they won’t take it for long.

    • jonpelto

      You’ve be watching Fox News – I can tell :) . Problem for the makers in lower fairfield is they’ll pay more if they move to ny or new jersey, wealthy retired? Will they love away from their family and communities – wouldn’t they have done so by now.
      90% plus – I’m making up the number up are just as stuck as the rest of us.
      Move and pay more or move and start over building friendships and connections to communities —- I just don’t think the number who move will be high – but we’ll certainly see soon enough.

      Sent from my BlackBerry please excuss typos

      • Wilton Businessman

        Not meaning they’ll move, meaning they will put up a fight this time. Some will move their businesses elsewhere (ie. not NJ or NY), I can guarantee that. I know several medium sized businesses right now are looking for office space in Florida. Maybe 5% of them will actually move. But won’t that be a sad thing when 40 or 50 more people get laid off just because of tax policy.

    • Linda174

      Is the billionaire who is moving from Westport to Stamford a maker or a taker? He is getting ten million (Jon, correct the number if I am wrong) to move his company a few miles and he was never going to leave CT. I wonder what you call that?

      That’s Romney’s lame defense for losing now….people thought they were going to get free stuff. So anyone who didn’t vote for
      Romney is a taker and a loser. The Republicans need to come up with a plan soon…bashing women, immigrants and everyone else who doesn’t agree with their narrow views is a losing strategy. I didn’t vote for either of them and I have voted for both parties….before assumptions are made by the “makers”.

  • LaurieLima

    Just want to say thanks for the upfront information you provide when I read the front page today I was prepared!

    • jonpelto

      It might not make the problems any easier if the politicians would tell the truth but I think people would feel like at least they know what the hell is happening around them and that – in and of itself – would make things better.

      Sent from my BlackBerry please excuss typos

  • jschmidt2

    Malloy is practicing for an Oval Office position. Seems bankrupting the state is a requirement now for that office.

    • jonpelto

      For members of either party!
      Sent from my BlackBerry please excuss typos

      • jschmidt2

        haven’t seen Republicans bankrupting states, however the Democrats seem to have a long list of states in trouble,

      • jonpelto

        I’n pretty sure Bush II ran a war on a credit card – and the Bush Tax cuts were not balanced with and equal amount of cuts. I’ll take the hit for the Dems but Bush is the master, and mr rowland agreed to the present system of funding pensions not to mention the 2017 provision locking the state employee system in place.
        Nope republicans are frauds as well.

        Sent from my BlackBerry please excuss typos

      • jschmidt2

        true on Rowland- but Democrats have taken it to an all new level. Yes Bush financed 2 wars on credit but the tax cuts did revive the economy after the internet bubble burst and 9/11. We had a growing economy, low unemployment until sub prime. Taxes should have gone up when the economy improved to pay back the debt. But raising taxes now is crazy.

      • msavage

        I disagree that Dems. have “taken it to a whole new level.” How can you simply brush aside the entire manufactured, unfunded wars via Bush debacle?

      • jschmidt2

        On;y because Obama has added 5.5 trillion in new debt in 4 years, a record. Malloy walks into a deficit and spends 900 million more for his busway and first five, and now has another deficit. yes the Democrats have taken it to a whole new level.

      • msavage

        Your simplistic, one-sided view is part of what has led to this country going down the toilet as far as it has. Still denying man-made global warming? Why don’t you take a visit to the Jersey Shore and talk to a few of the people there who have lost their homes. Maybe they can convince you.

        It isn’t either-or. Please stop assuming that anyone with a D after their name is automatically evil and anyone with an R is one of the “good guys.” Open your eyes and take a look at the damage that Reagan and Bush did to this country before you start talking about Obama. You brush aside trillion-dollar wars manufactured purely for the benefit of the MIC as if they were nothing so that you can continue to harp upon Obama. The evil doesn’t lie with one party or another. The evil lies with the military-industrial complex, big pharma, big oil, and huge, multi-national corporations. These industries/companies/organizations are run by sociopathic, greed-motivated jackasses who cannot see further than their next earnings statement. They don’t give a shite what they are doing to this planet or the people on it. THEY are the ones in control here, and they have influenced the vast majority of our politicians via high-paid lobbyists who whisper their insidious messages into all-too-willing ears. Bush, Obama, they are both merely puppets for these folks, with limited abilities to act on their own volition. Bush was probably too dumb to even realize he was being manipulated. I’m sure Obama knows–it remains to be seen how he’ll deal with it during his second term. Malloy–Malloy has clearly sold out 100%. But this has nothing to do with whether he’s a Dem. or a Rep. Malloy is acting nothing like your “traditional” Dem.

      • jschmidt2

        One event doesn’t make global warming. Scientists cooked the books, changed the data to match their preconceived notions and thereby blew any credibility with the public, The data needs to be re-examined and presented by less biased scientists for the public to be convinced. Yes the climate is changing, as it has for thousands of years. But what can be done about it is still up in the air. and if China and India don’t participate, then the only thing that results is our economy is ruined.
        Reagan has a growing economy with properity. His recovery was the 3 times faster than this one from as bad a recession. He did it by getting people back to work, not by killing business with regulations Bush did what he needed to do to get the economy back on its feet, after Clinton’s internet bubble burst and took the Cap gains tax revenues with it and 9/11. He lowered taxes and got a growing economy through Jan 07 when subprime hit. He financed wars the public wanted and the Democrats also voted for on the credit card. Now for the rest of you rant, I would submit you just don’t like the capitalist system. Companies make a profit to return equity to their investors. They are not charities and in this competitive global environment they have to cut costs, sometimes offshore and create profits or they die as companies. You want to take corporations out fundraising for campaigns, fine, as long as unions can’t contribute either. Let each person contribute. Going back to Carter with CRRA, Clinton signing repeal of Glass Steagel (yes the Republicans wanted it too), to Dodd/Frank preventing further regulation of Fannie and Freddie, you have direct Democrats involvement in the causes of subprime mess. You have Pelsoi yelling it is all the Republicans fault and the media buying that line. You have Democrats controlling Congress for 2 years when Bush was in, and they did nothing to stop subprime. Why? Was it to get a Democrat into the WH? Now we have Obama spending like 5.5 trillion in 4 years and adding taxation and regulation that will kill companies, jobs and the economy. Democrats spend and tax. That is the history of the Democrats in DC or Hartford. That is the only thing they know what to do. And Malloy will not go after unions because they own the party. Taxpayers have no union and only get to put in their opinion every 4 years for gov or prez, after the media has distorted the record, since the majority of media is clearly on the Democrats side.

      • msavage

        There’s no point in arguing with you. You don’t even read anything if it comes from what you consider a “liberal” source. My opinion–you, and people like you, are dangerous.

      • jschmidt2

        I read plenty of what liberals have said and most of it like your is inaccurate. Yes there is no arguing with you either as liberals appear to lack the common sense and math skills. So our opinions of each other match. But right now since Democrats are in charge, they are the more dangerous. The only good legislation is when both sides are unhappy. Look at California for a state run into the ground by the Democrat control. CT is following and the US is following Greece. Elections have consequences. Get back to me in 4 years and let me know how you like them.

      • JMC

        I believe, M, that schmidt2 has supplied reasons in plenty for his arguments. You can dispute his reasons and facts, if they are, but it is unfair to say he is dangerous or unreasonable. To do so is -unreasonable! Your dismissal of him basically consists of : I don’t like your conclusions, therefore I’ll call you dangerous and I won’t have to bother with you. Similar to arguments like “I don’t like what Malloy is doing, but he’s not as bad as Rowland or Rell”.

      • JMC

        BTW, Jerry Brown and the CA legislature just initiated Cap and Trade, which I assume msavage agrees with. CA is a debt basket case. Let’s watch and take that as a test case. I believe we’ll find – and that people there don’t dispute – that C&P is a way to wrest more tax dollars from citizens. Wanna bet the liberal polls there will spend them for votes rather than on the deficit?

      • JMC

        C&T, not C&P. Sorry

      • msavage

        I’m not basing my opinion purely on this conversation, JMC. jschmidt and I have history, don’t we, j? I have provided him/her with refutation before via articles that he refused to read because he deemed the source “too liberal.” So I have learned (finally) that it is not worth arguing with jschmidt.

      • JMC

        I agree. And I see it as part of the Dems’ conscious program to subdue the citizenry through debt.

      • JMC

        Jon – Rowland was a Republican gov. with a Dem legislature. This a Dem state.

  • Linda174

    Can we get any money back for the $40,000 vehicle given to the BOR guy, Kennedy? He’s gone now…who has the SUV?

    • jonpelto

      He left it in the parking lot at his old office lol

      Sent from my BlackBerry please excuss typos

  • perturbed

    Question: How does the projected budget deficit compare to Malloy’s corporate welfare spending spree? Have you kept a tally of the state’s total “economic development” tab under Malloy?

    –perturbed

  • Pingback: CT Essential Politics – Friday 11.16.12 - CT Devil's Advocate

  • http://twitter.com/wwkayaker7 steve o

    When Malloy first raised taxes almost all the people close to the border became Massachussetts shoppers. We do not do any business in Ct. anymore. Gas is $.35 cheaper, food is cheaper, alcohol is cheaper, dining is cheaper. If Malloy wants to raise revenue, he should lower the taxes. I remember 20 years ago when Massachussets people shopped in Ct to avoid taxes.