Keith Phaneuf’s lead article in yesterday’s CT Mirror reads, “Malloy doesn’t get predicted revenue boost, big deficits remain.”
“A new analysts’ report Thursday found tax receipts and other revenues still likely to grow as originally anticipated last summer – when major deficits were projected for the next two fiscal years.
That means the governor — who has called those earlier estimates “extremely conservative” – still must close shortfalls topping $1.3 billion next fiscal year and $1.4 billion in 2016-17. Malloy, whose budget plan is due to legislators on Feb. 18, repeatedly has ruled out tax hikes.”
A political campaign dedicated to lying to Connecticut’s voters is in the past, and with the release of the “Consensus Revenue estimates,” Malloy’s Budget Director, Ben Barnes, announced “The revenue estimates for the biennium will be the basis for the Governor’s budget proposal.”
So despite a year of constantly denying the very real looming deficit, the Malloy administration finally admits that the dire “predictions” produced by the Independent Office of Fiscal Analysis are true.
Throughout his re-election campaign, Malloy claimed that not only would tax receipts grow by about seven percent during the next two years, but as the CT Mirror recalls, “Connecticut could expect more, according to the governor. And the revenue from that extra growth would make the deficit relatively easy to manage, provided municipal aid was kept flat and agencies did not receive inflationary spending increases.”
Is the news a surprising development? Hardly…
Here are just a handful of the budget related posts on Wait, What? over the past year;
No, because – That’s not how it works! That’s not how any of this works!
Rather than honestly confront the projected $1.4 billion budget deficit in next year’s state budget and the shortfall of more than $4.8 billion over the next three years, the two major party candidates for governor have decided to simply lie their way to Election Day in the hopes that voters will not discover the magnitude of the fiscal problems Connecticut will face over the next few years.
Both Malloy and Foley say that, if elected, they will not raise taxes, not cut vital services not reduce the state workforce and will not need to negotiate contract changes with state employees.
The notion that such campaign promises could be met is not only laughable but it is a sad commentary on how far from the truth Connecticut’s gubernatorial candidates will stray in their ongoing efforts to get elected.
8-13-14: State Deficit? What State Deficit?”
In a recent interview with the CT Mirror, Governor Dannel “Dan” Malloy said,
“We really don’t have a deficit.”
However, if the truth be told, according to the non-partisan Office of Fiscal Analysis, the State of Connecticut continues to face a monumental fiscal crisis. In fact, here are the projections from the experts for the fiscal years following this November’s election;
Fiscal Year 2016: A $1.4 billion Connecticut state budget deficit
Fiscal Year 2017: A $1.6 billion Connecticut state budget deficit
Fiscal Year 2018: A $1.8 billion Connecticut state budget deficit
Malloy says the Office of Fiscal Analysis is wrong, although he uses their numbers when he complains that he inherited a $3.7 billion state budget deficit from former Governor Rell.
Meanwhile, the cornerstone of Malloy’s campaign is his claim that he won’t propose or accept any tax increases during the next four years, he won’t need to renege on his deal with the state employee unions nor will he have to ask for further concessions from state employees and he won’t cut vital services here in Connecticut.
“We really don’t have a deficit…I know that’s hard to believe.” (Dan Malloy)
Malloy tells the CT Mirror;
- Connecticut doesn’t have a deficit
- There will be no cuts to key services
- There is no need to discuss concessions with state employees
- He will not propose or accept any tax increase during his four years as governor – even to shift the tax burden by making the wealthy pay their fair share so Connecticut can reduce the disproportionate pressure on the middle class.
And how is Malloy going to achieve this incredible feat of having more services, no additional taxes and no deficits? As the CT Mirror explains,
“The governor said he’s confident that both the nation’s and Connecticut’s economy are on the cusp of a major surge.”
As the CT Mirror explains in the series on where the candidates stand of the state budget, Pelto: State budget deficit reveals a broken fiscal system;
“Former state Rep. Jonathan Pelto doesn’t have any trouble standing out from the rest of the 2014 gubernatorial candidates. For Pelto, a $1.4 billion shortfall – more than four years after the last recession ended – typifies a broken fiscal system that threatens Connecticut’s schools, state workers’ pensions, and middle class families.”
6-6-14: Look there goes a flying pig!
The truth is that Connecticut is facing a projected state budget deficit of at least $1.3 billion dollars for the fiscal year that begins after this year’s gubernatorial election.
But today Governor Dannel “Dan” Malloy boldly announced… “We don’t face a deficit.”
In a late afternoon CT Newsjunkie story entitled, Malloy Dismisses Deficit Projections, Won’t Ask for More Concessions, the Governor not only explained that the deficit was going to disappear but he took the opportunity to repeat his iron-clad pledge that he will not propose or accept any new taxes in a second term.
As Malloy explained, “There will not be a tax increase.”
And to top things off, Malloy said that he was ruling out asking state workers for more concessions should he be re-elected as Connecticut’s Chief Executive Officer.
While the Governor’s hyperbole is impressive, there is not a state employee, retirees, public school teacher or retired teacher, let alone a public official or taxpayer who believes that Malloy’s portrayal of reality is accurate.
Hearing about Malloy’s remarks, one can’t help but dwell on that classic idiom about pigs flying or the one about Hell freezing over.
As a result of Governor Malloy’s gimmick ridden state budget, the candidate who wins the 2014 gubernatorial election will take office facing a projected state budget deficit of $1.3 billion or more.
By using one-time revenues for on-going expenses, purposefully under-funding various government programs and utilizing a series of budget gimmicks, the new 2014-2015 state budget is just about as irresponsible as they come.
The moment Malloy signs it into law he will be creating a budget deficit for this year and a catastrophe in the budget that will follow.
But as irresponsible as Malloy’s latest budget is, nothing compares to the damage that will come with his recent “NO TAX” pledge should he be elected to a second term. Malloy sealed his fate when he recently told reporters that he would, “neither seek nor accept any further tax increases” in a second term.
Pandering to phantom voters, Malloy has engaged in a George Bush “read my lips” moment.
By making an “ironclad” NO TAX increase pledge, Malloy joins the Republican candidates in assuring that the people of Connecticut must live with a tax system that crushes the middle class while coddling the rich.
As Wait, What? readers have been reading for months, the Malloy administration has been painting a rosy picture of Connecticut’s state budget situation thanks to the unparalleled use of budget gimmicks and inflated revenue estimates.
Readers have been repeatedly informed that Malloy’s irresponsible approach to budgeting would leave Connecticut with a $1 billion state budget deficit in each of the three years following the November election.
Based on the latest revenue projects, yesterday’s Wait, What? post increased that projected budget deficit to at least $1.2 billion and this afternoon, the Malloy administration, along with the General Assembly’s Office of Fiscal Analysis, announced that the person who is elected to be governor in November will face a budget deficit of close to “$1.4 billion or 7.4 percent of annual operating costs.”
And the list of articles warning about the fiscal realities facing the state goes on and on and on.
Whether you read Keith Phaneuf’s pieces in the CT Mirror or the news analysis and commentary pieces here at Wait, What?, the message has been the same….Governor Malloy and his administration have been lying to the votes of Connecticut.
And now, months after the campaign is over and just weeks before Malloy presents his 2015 state budget proposal, the governor’s budget office finally admits – Connecticut is facing a budget crisis well in excess of $1 billion.