NEWS FLASH – Malloy, State Employee Unions DROP KICK $13 billion plus onto the backs of our children

Governor Dannel Malloy, in concert with Connecticut’s State Employee Unions, have joined forces to shift a major portion of Connecticut’s massive unfunded pension liability onto the backs of Connecticut’s children and those yet to come.

Call it an outrageous effort to kick the can so far down the road that no one will be around to remember what today’s elected officials have done to the economic well-being of those who aren’t yet voters and those who haven’t even shown up on this earth.

Worse yet, the action will probably be taken without a vote of the Connecticut General Assembly.

Warning that such a disastrous deal would be forthcoming, Wait, What? published two recent commentary pieces on the topic.

Don’t shift Connecticut’s unfunded liability problem onto our children.   (Via CT Mirror 12-8-16)

And

Warning – Malloy likely to propose shifting State’s massive unfunded liability problem onto our children  (12-1-16)

But the warnings fell on deaf ears as Connecticut’s governor now seeks to duck significant responsibility for paying down Connecticut’s unfunded state employee pension fund.

As CT Mirror explains in a breaking story entitle, Malloy, unions strike deal to stretch out spiking CT pension costs;

Gov. Dannel P. Malloy announced a deal Friday with state employee unions that would allow Connecticut to dodge a fiscal iceberg by holding down annual pension costs otherwise set to spike over the next 16 years.

But to get that relief, Connecticut would shift at least $13.8 billion in estimated pension expenses owed before 2032 onto a future generation.

[…]

For now, though, the agreement shifts a heavy burden to a future generation on the argument that this one simply cannot afford to pay the full burden it faces.

The CT Mirror adds;

Under the new agreement, this year’s $1.6 billion annual cost essentially would remain flat next fiscal year. It originally was supposed to increase by about $84 million. But after that it would rise steadily until it reaches $2.2 billion in 2022.

It could remain there — depending on how pension investments fare — until 2032.

It would drop below $1.8 billion in 2033 and, from there, it would remain close to $1.7 billion through at least 2046.

[…]

The Malloy administration did not release an estimate Thursday of that lost investment opportunity. But a spokesman said the cost could be calculated in the coming weeks after an actuarial analysis of the new pension funding plan is completed.

This plan could be approved, under current legislative rules, without a vote from lawmakers, provided neither the House nor Senate vote to reject it within 30 days after the 2017 session begins on Jan. 4.

For more on this developing story go to: http://ctmirror.org/2016/12/09/malloy-unions-strike-deal-to-stretch-out-spiking-ct-pension-costs/

Don’t shift Connecticut’s unfunded liability problem onto our children (via CT Mirror)

A special thanks to the CT Mirror for posting Don’t shift Connecticut’s unfunded liability problem onto our children.  You can read and comment on this important issue at: http://ctviewpoints.org/2016/12/08/dont-shift-connecticuts-unfunded-liability-problem-onto-our-children/

Don’t shift Connecticut’s unfunded liability problem onto our children

Eroding revenues, red ink and poor fiscal management continue to undermine Connecticut’s state budget.  Unaltered, the present approach will make it increasingly difficult, even impossible, for our children and future generations to have a state government that fulfills its fundamental and constitutional duty to provide for a healthier, safer and more equitable society.

But the problem is about to get far worse.

The fiscal crisis facing Connecticut is severe, but rather than step up and truly address the crisis, Gov. Dannel Malloy and many state legislators continue to turn a blind eye to their responsibility, especially when it comes to addressing the failures of the past.

Since he took office in January 2011, Malloy’s fiscal policies have been based on a reckless strategy of coddling the rich, outrageous acts of corporate welfare, record cuts to Connecticut’s public colleges and universities, reducing the availability of vital public services and undermining public education … all while shifting more and more of the burden to pay for public services onto Connecticut’s regressive and anti-middle income property tax system.

Denying the very real fiscal problems that are facing the state, Malloy and his political operatives have bounced back and forth between denying the very existence of state deficits and lamenting the arrival of a new economic reality.

Many will remember that upon his arrival in the governor’s office, Malloy whined about the fact that he had “inherited” a $3.7 billion budget shortfall following the fiscally irresponsible policies of Gov. M. Jodi Rell and the Democratic-controlled Connecticut General Assembly.

However, rather than use his time in office put the state back on track, Malloy’s irresponsible budget tactics have further exacerbated Connecticut’s fiscal problems.

Proof of this growing disaster can be found in the reality that as the Malloy administration prepares to propose Connecticut’s next state budget, the state is faced with a projected biennial budget shortfall in excess of $3.3 billion and growing.

And by failing to resolve Connecticut’s year-to-year budget problems, the situation facing the state’s pension and retiree healthcare obligations has become particularly severe.

Now, having squandered the opportunity to institute a special income tax surcharge on Connecticut’s wealthiest taxpayers to pay down some of the massive debt and unfunded liabilities, the options are fewer and the problems are bigger.

If history is any lesson, Malloy’s “solution” to Connecticut’s fiscal crisis will be to propose another state budget plan full of gimmicks, but this time the issue will be compounded by a plan to dump even more of the responsibility for dealing with the state’s catastrophically high debt and unfunded liabilities onto our children and future generations.

It is certainly no secret that behind closed doors Malloy and his team are developing a proposed FY18-FY19 state budget built on more cuts to vital services, shifting even more of the burden for a college education onto the backs of Connecticut’s students and their families and significantly reducing the amount of municipal aid, thereby further increasing property tax rates on Connecticut’s middle income families.

What is less understood is that Malloy will likely propose walking away from Connecticut’s near term obligation to confront the state’s $74 billion debt and unfunded liabilities.

The truth is that for decades Connecticut state government has refused to properly fund its state employee and teacher pension and benefit plans.

Making matters even worse, Malloy and the legislature have been using the state’s credit card in inappropriate ways, including his decision to use borrowed funds to pay for his failed, but much heralded, corporate welfare program designed to pick winners and losers and reward companies he favors.

Now, all of these “chickens are coming home to roost.”  Yet rather than step up and take action to reduce state debt and adequately fund Connecticut’s pension and benefits funds, Malloy may propose “kicking the can down the road” by shifting even more of the burden onto Connecticut’s children and future generations, a maneuver that will dramatically increase the cost to taxpayers over time.

The harsh reality is that when faced with the critically important obligation to do what is right, Connecticut’s elected officials – Democrat and Republican – have remained committed to a motto that reads, “Don’t do today what you can put off until tomorrow.”

The result of such a tactic is not only exacerbating Connecticut’s fiscal problems, but condemning our children and future generations.

If Connecticut voters are not outraged, they aren’t paying enough attention.

Once again, weigh in on this important issue at: http://ctviewpoints.org/2016/12/08/dont-shift-connecticuts-unfunded-liability-problem-onto-our-children/

Warning – Malloy likely to propose shifting State’s massive unfunded liability problem onto our children

Since taking office in January 2011, Governor Dannel Malloy’s fiscal policies have been based on a reckless strategy of coddling the rich, record cuts to Connecticut’s public colleges and universities, reducing the availability of vital public services and undermining public education … all while shifting more and more of the burden to pay for public services onto Connecticut’s regressive and anti-Middle Class property tax system.

Some will remember that upon his arrival in the Governor’s Office, Dannel Malloy whined about the fact that he had “inherited” a $3.7 billion budget shortfall following the fiscally irresponsible policies of Governor Jodi Rell and the Democratic-controlled Connecticut General Assembly.

However, rather than use his time in office to put the state back on track, Malloy’s irresponsible budget tactics have further exacerbated Connecticut’s fiscal problems.

Proof of this growing disaster can be found in the reality that as the Malloy administration prepares to propose Connecticut’s next state budget, the governor and his staff are facing a projected biennial budget shortfall in excess of $3.3 billion and growing.

Will this be the year that Governor Dannel Malloy finally takes the steps necessary to confront the budget problems challenging the state?

The answer is almost certainly a resounding NO!.

Sources close to Malloy are reporting that the neo-liberal politician’s “solution” to Connecticut’s fiscal crisis will be to propose a budget full of gimmicks, all the while dumping the responsibility for dealing with the state’s catastrophically high debt and unfunded liabilities onto our children and future generations.

Behind closed doors, Malloy and his team have begun the task of putting together the state’s FY18-FY19 proposed budget.  Knowledgeable sources suggest that this new budget will be built on more cuts to vital services, shifting even more of the burden for a college education onto the backs of Connecticut’s students and their families and significantly reducing the amount of municipal aid, thereby further increasing the property tax rates on Connecticut’s middle income families.

Equally appalling is the growing probability that Malloy, with the support of the legislature, will simply walk away from the state’s obligation to confront its $74 billion in debt and unfunded liabilities.

For decades Connecticut state government has refused to properly fund its state employee and teacher pension and benefit plans.

Making matters even worse, Malloy and the legislature have been using the state’s credit card in inappropriate ways, including Malloy’s much heralded corporate welfare program designed to reward companies he favors.

Now all of those “chickens are coming home to roost,” but rather then step up and take action to reduce state debt and adequately fund pension and benefits, it now appears that Malloy will simply propose dumping the burden onto Connecticut’s children and future generations.

While facing the fundamental obligation to do what is right, their operating motto seems to remain – Don’t do today what you can put off until tomorrow – no matter how devastating that delay will be for our children and those yet to come.

If Connecticut voters are not outraged, they aren’t paying enough attention.

Today is a day to remember that Malloy and the Legislature STOLE Connecticut’s school seat belt money!

From today’s Chattanooga Times Free Pres, 6 students in ICU after school bus driver charged in crash that killed Woodmore Elementary students,

Five students are confirmed dead in the Woodmore Elementary School bus crash and six remain in critical condition this morning.

Three of the students killed were in fourth grade, one was in first grade and another in kindergarten, according to Hamilton County Schools Interim Superintendent Kirk Kelly.

Descriptions from the crash scene appear to confirm that the death and injury toll would have been significantly reduced if children were wearing seat belts.  However, in Tennessee only school buses transporting special education students are required to have seats belts.

By comparison, school buses in California, Florida, Louisiana, New Jersey and New York must be equipped with seat belts and Texas requires that all school buses purchased after 2010 must be fitted with seat belts.

As Tennessee newspapers are now reporting, State Representative Joe Armstrong, D-Knoxville, “led an unsuccessful effort to require seat belts on Tennessee school buses last year after two students and a teacher’s aide died in a bus crash in Knoxville. Many lawmakers opposed the proposal, saying it was too expensive.”

But seat belts work…

According to a 2010 study conducted by the University of Alabama, seat belts work.  The three year tracking study found,

  • Students are six to eight times safer riding to school in a school bus than riding to school in their parents’ cars.
  • The addition of seat belts would make already-safe school buses even safer.
  • Based on 170,000 observations of pupils in pilot-project buses, the average seat belt- use rate was 61.5%.
  • Adding seat belts increases the thickness of seat-backs, leading to fewer rows of seats.

School bus seat belts might have made a huge difference in yesterday’s fatal school bus accident, but policy makers deemed that they were “too expensive.”

The cost issue was also raised in Connecticut, as well, when the General Assembly last debated mandating that seat belts be put into school buses.

At the time, a special fund was set up to help town mitigate the cost of installing seat belts.  To pay for the program the state dramatically increased the fee a driver must pay when reinstating their driver’s license.

But while the extra fee has brought in millions of dollars, none of the money has been used to help towns pay for installing seat belts in buses.

Why?

Because Governor Dannel Malloy and the Connecticut General Assembly STOLE the money from that special fund to help balance the state budget … not once … but twice!

It has been an issue that Wait, What? has written about many times.

For example, in a Wait, What piece entitled, They stole the fricking school bus seat belt money again! and published on June 7, 2016;

Hidden deep inside the new state budget bill negotiated by Governor Dannel Malloy and Democratic legislative leaders, and approved last month by the Democrats in the General Assembly, was a provision that, once again, transferred the money that had been set aside to help school districts retrofit school buses with seat belts into the general fund.

As Wait, What? readers know, this is not the first time Governor Malloy and the Democrats have stolen the School Bus Seatbelt Account in order to make the state budget balance.

Since taking office, Malloy has reached into the special school seat belt fund four times, grabbing close to $10 million dollars.

Rather than use the funds for their intended use – to protect our children – Malloy and the Democrats simply grabbed the money to plug holes in the state budget.

This time, rather than adopt a fair and honest budget, the Democrats added Section 28 to Senate Bill 501 which “transferred” $2 million from the School Bus Seatbelt Account to the General Fund.  The legislature also swept $2 million from the Seat Belt fund to address a small part of the $250 million Fiscal Year 2016 budget deficit.

Previous Wait, What articles on this issue can be found via the following links:

The Train Wreck of the Democrats’ State Budget. [Or for long-time Wait, What? readers file under – Not the Fricking School Bus Seat Belts again!] (6/3/2015)

School Bus Seat Belt Fund: A prime example of Connecticut’s budget gimmickry (1/14/2014)

Remember when school bus seatbelts were a big priority?(12/20/2012)

The School Bus Seat Belt Account was created following the tragic January 2010 school bus accident on Route 84 in Hartford that killed a Rocky Hill student who was attending one of the CREC magnet schools.  Following the accident, the Connecticut legislature kicked into action, passing Public Act 10-83.

The law created the Connecticut School Bus Seat Belt Account, “a separate non-lapsing account in the General Fund” and required that the funds be used to help school districts pay for the cost of equipping school buses with lap/shoulder (3-point) seat belts.

To pay for the program, the Legislature increased the cost associated with restoring a suspended driver’s license from $125 to $ 175, using the extra $50 per person to create a funding stream for the important program.

Now six years later, no school bus seat belts have been installed, thanks to the fact that Connecticut’s governor and legislature have stolen nearly $10 million from the fund.

When these elected officials come looking for support, ask them why they didn’t do more to stop this outrage.

For more on how Connecticut’s elected officials stole the money meant to help ensure seat belts were installed in school buses read these Wait, What? posts;

Democratic Budget Deal – An irresponsible farce (12/8/2015)

The Train Wreck of the Democrats’ State Budget (6/3/2015)

School Bus Seat Belt Fund: A prime example of Connecticut’s budget gimmickry (1/22/2014)

Remember when school bus seatbelts were a big priority?  12/20/2012

Malloy administration fails to properly regulate Connecticut charter schools.

Charter schools are privately owned, but publicly funded organizations that grab more than $110 million a year from Connecticut taxpayers.

But thanks to Governor Dannel Malloy’s pro-charter school policies, charter schools are allowed to violate Connecticut laws and walk away from their obligations to Connecticut’s students, parents and teachers.

For example, charter schools fail to hire certified teachers and employees.  See Wait What? post entitled Connecticut charter schools violate state law with use of uncertified teachers and administrators

In addition;

Charter schools refuse to educate their fair share of students who require special education services or those who need help learning the English language

And

Charter schools maintain inappropriate and unfair discipline policies that lead to unacceptably high numbers of students being suspended from school.

Instead of stepping up and ensuring these corporations are following the laws, regulations and policies, Governor Dannel Malloy’s administration simply looks the other way.

Earlier this year, Governor Malloy’s Commissioner of Education made her position extremely clear.

As the CT Mirror reported;

 The state education commissioner says she does not have the same obligations in investigating complaints from parents, students and teachers against charter schools that she does for regular public schools.

The state says charter schools are not subject to what is known as a 10-4b process, which lays out mandatory steps the state must follow to respond to complaints. The state said it has more discretion about whether and how to proceed with complaints against charter schools than it does for schools operated by local school boards.

[…]

The issue is a symptom of a larger controversy over whether charter schools should be given the increased latitude they have to run their schools while still receiving millions of dollars in state education aid

The failure to properly regulate charter schools has become so severe the national financial experts are now calling for greater charter school oversight.

A national publication recently covered this very issue in NFMA Calls for Detailed Charter School Disclosures.

The National Federation of Municipal Analysts is urging charter schools to provide detailed financial, academic, and staffing information in primary and secondary disclosure documents.

The news article added;

“The charter school sector has been very active in the last … four to five years [and] it traditionally has not had a lot of public rating coverage,” said Gilbert Southwell, vice president at Wells Capital Management and co-chair of the NFMA disclosure subcommittee that drafted the paper. “[The RBP] is both educational for our membership but also helps to establish our disclosure expectations when we’re looking at these deals.”

Dean Lewallen, vice president and senior analyst at AllianceBernstein L.P. and co-chair of the subcommittee with Southwell, said the RBP is the product of a year-long vetting process with a variety of market participants and thus reflects “an industry consensus.”

The document’s recommendations begin with key information that should be included in a primary offering statement (POS). According to the RBP, a charter school’s POS should disclose all material financial agreements, including the proposed indenture, loan agreement, capital leases, management agreements, and tax regulatory agreements. It should also include information from twelve other broader topics, like descriptions of facilities and their financing, pledged revenues, and projected cash flows. NFMA also wants descriptions of debt service, repair and replacement, operating and deficit, as well as insurance and property tax reserve funds.

The RBP lists disclosures in a successful charter school POS related to academic performance as well as school management and operations.

“A charter school’s academic performance has been identified as an especially important factor in charter school long-term stability and success,” NFMA said in its RBP. “Consequently, the POS should disclose all relevant aspects of the charter school academic performance.”

Charter schools cost taxpayers huge amounts of money.  Malloy’s gift to Connecticut’s charter schools are closing in on half a billion dollars in public fund.  It is time that elected officials make sure these corporate entities meet the same basic standards that public schools must adhere too.

Connecticut charter schools violate state law with use of uncertified teachers and administrators

As a result of Governor Dannel Malloy’s pro-charter school, anti-public school agenda, Connecticut taxpayers hand over more than $110 million a year to the state’s charter school industry.  This largess comes despite the fact that Connecticut’s charter schools refuse to accept and educate their fair share of students with special education needs and those who require extra help learning the English language.

Equally appalling is that these privately owned, but publicly funded, schools refuse to follow Connecticut law when it comes to the use of certified teachers and school administrators.

Connecticut State Law is extremely clear.

For public schools, 100% of the teachers, administrators and service staff MUST hold an appropriate certification and authorization for the position in which they are serving.  State certification not only ensures that teachers and school personnel have appropriate training but it also means these individuals have gone through background checks before being allowed to teach children.

State law even mandates that public schools cannot even pay non-certified teachers and administrators.

However, thanks to aggressive lobbying by the charter school industry, charter schools “play” by a very different set of rules.

In charter schools, only 50% of the teachers, administrators and professionals must hold a traditional state certificate such as an initial, provisional or professional educator certificate.

This means that up to 50% may serve under a “temporary authorization” process or have what is deemed a “quick and easy” certification from a charter school preparation program.  In no case are charter schools allowed to use teachers and staff who don’t hold permanent or temporary certification.

Yet despite this enormous flexibility, Connecticut’s charter schools are notorious for still having a significant percentage of their staff “out of compliance” with Connecticut’s statutes and regulations.

This result is that parents of charter school students cannot be sure whether their student’s teachers and administrators are meeting the most basic requirements to be in a classroom and that taxpayers are paying for staff who should not even be hired by the charter schools.

The data on the magnitude of the problem in charter schools can been found at the Connecticut State Department of Education.

According to official reports filed with the State Department of Education, and current as of March 2016, 14 out of 24 (58%) Connecticut charter schools are were violating the law when it comes to ensuring students have properly authorized staff in the building.

It will not come as a surprise to those who follow “education entrepreneur” Steve Perry, that the greatest violator of the law is the Capital Prep Charter school chain.  As of March 2016, 80% of Bridgeport Capital Prep Harbor School’s staff did not have any certification what-so-ever and were therefore in violation of state law.

A number of other charter schools had staffing operations in which at least 30% of the staff were teaching or administrating illegally.  This list included Achievement First Amistad, Achievement First Bridgeport, Achievement First Hartford Academy, Achievement First Elm City, the Stamford Academy and the Stamford Charter School for Excellence.

Other charter schools in which at least 10% of the staff were in violation of Connecticut law included Booker T. Washington Charter School, Brass City Charter School, Highville Charter School, New Beginnings Family Academy charter school and Path Academy Charter School.

Rather than giving Connecticut charter schools even more state money, state officials should be withholding funds until charter schools fulfill their legal duty to their students, parents and the taxpayers of Connecticut.

Malloy gives Climate Change Denier $35 million in taxpayer funded corporate welfare

Despite Connecticut’s massive and growing fiscal crisis, Governor Dannel Malloy’s corporate welfare program continues to spin out of control.  This time the recipient of the Malloy administration’s taxpayer funded give-a-way program is another massive, extraordinarily profitable hedge fund, a company headed by a multi-millionaire corporate executive who is a climate change denier.

Last Wednesday, as the nation and its citizens reeled from the results of Election Day, Governor Dannel Malloy announced his decision to give Greenwich-based AQR Capital Management $35 million dollars in Connecticut taxpayer funds.

AQR Capital Management is one of the nation’s largest hedge funds, with assets of over $159 billion. The company’s CEO, Cliff Asness, is known for his Republican, Libertarian and right-wing politics, including his consistent denial that climate change is a problem facing the world.

As the Hartford Business Journal reported in, Greenwich firm to expand with $35M in state loans, grants,

Gov. Dannel P. Malloy on Wednesday announced the company’s participation in the Department of Economic and Community Development’s First Five program, providing up to $28 million in loans and up to $7 million in grants to support the firm’s $72 million expansion project. AQR Capital will retain 540 jobs as it creates new ones, Malloy said.

Since the Malloy administration’s corporate welfare program is funded through state borrowing, the $35 million gift to AQR Capital Management will cost taxpayers well in excess of $40 million.

Making the corporate subsidy all the more outrageous, AQR’s top executive has been an extremely controversial figure in the business world.

Addressing Cliff Asness’ statements, a Fortune Magazine article published on March 11, 2015 and entitled, Top hedge fund manager: Global warming isn’t a danger, reported;

One of Wall Street’s most successful hedge fund managers is once again wading into the climate change debate. His conclusion: It’s not as big of a problem as some suggest.

The hedge fund executive went on to suggest that, “based on the current pace of global warming, it will take another 500 years before the changes become a real problem.”

Connecticut crippling state debt is already making it impossible to maintain vital services and will leave future generations with impossibly high debt payments.

In fact, Governor Malloy’s unprecedented use of corporate welfare will cost Connecticut taxpayers well in excess of $1 billion and his fiscally irresponsible policies have already undermined Connecticut state government’s ability to meet its obligations in the years and decades to come.

Malloy claims $5.7 million state budget deficit … But $400 million is closer to the truth

Early last summer the Connecticut General Assembly adopted a budget agreement that had been negotiated between Governor Dannel Malloy and the Democratic leaders of the Connecticut State Senate and State House of Representatives.

In truth, the new state budget was out of balance the day it was signed into law and the situation has only gotten worse over the last four months.

Connecticut Income Tax revenues are down.

Connecticut Sales Tax revenues are down

Of the $209 million in “lapse” savings required in the state budget, Malloy has yet to identify $61 million in cuts.

And while the budget plan required about 2,000 layoffs in order to balance, the governor has only implemented about half that number.

Meanwhile, the poorly developed Malloy/Democratic austerity budget will lead to a variety of expenditures above budgeted amounts.

Together, these items translate to a REAL budget deficit in this year’s state budget in the range of $400 million or more.

However, rather than tell the citizens of Connecticut the truth about Connecticut’s continuing fiscal crisis, Governor Dannel Malloy lied to the people of Connecticut in the hope that voters would not take their anger out on the Democratic legislators who voted for the bad budget deal.

As the CT Mirror explained,

Gov. Dannel P. Malloy reported a minuscule state budget deficit [On October 20, 2016] — projecting a $6 million shortfall in state government’s $17.9 billion General Fund.

[…]

“We are projecting a minor $5.7 million operating deficit,” Office of Policy and Management Secretary Ben Barnes, Malloy’s budget chief, wrote in his official monthly forecast to Comptroller Kevin P. Lembo.

“Given that our estimates reflect information only through the first quarter of this fiscal year, this projection does not represent a material deviation from the budget plan.”

[…]

Still, it comes just six weeks after the administration reported a fiscal hole 23 times larger than this one in a memo to dozens of agency heads.

The CT Mirror’s story added,

“These budget numbers from the governor’s office are at odds with what every other reasonable observer knows and what other independent analysts have stated: Connecticut’s finances are a mess and 20 days before the election this partisan Democratic office wants to confuse and defuse when it comes to the salient facts,” House Minority Leader Themis Klarides, R-Derby, said. “We are in huge trouble and we all know it will come out after Nov. 8, Election Day.

And

“The governor has downplayed and misstated facts for at least a year,” Senate Minority Leader Len Fasano, R-North Haven, said. “The inability to face the real facts just gets this state deeper and deeper and deeper into trouble, and the enablers are the Democratic majority.”

For those tracking Malloy’s deficit charade, the CT Mirror broke the story that Malloy’s Budget Director wrote to agency heads last month informing them that there was a $133 million revenue shortfall in this year’s budget.  However, days later, this same official wrote to State Comptroller Kevin Lembo telling him that there was no budget deficit at all.

Malloy’s latest political tactic is strikingly similar to the one he used when he was running for re-election in 2014.  For months he told Connecticut voters that there was no state budget deficit, nor would there be any state budget deficit if he was re-elected to a second term in office.

However, ten days after Election Day 2014, Malloy announced that a major state deficit had suddenly appeared.

While Malloy strains to keep the magnitude of this year’s state budget deficit secret, the truth will become increasingly apparent in the weeks following this year’s November 8th election.

In illegal move, Malloy administration misleads public (again) on budget deficit

State law requires that on the 20th of every month, the Governor’s administration MUST inform the State Comptroller about any known budget deficit.  The State Comptroller, in turn, uses that information to help guide his mandated monthly report that is issued on the first of each month.

In October, Malloy’s budget division told State Comptroller Kevin Lembo that the budget was in balance, but as it turns out, that was a lie.

As Keith Phaneuf at the CT Mirror is reporting today;

Gov. Dannel P. Malloy’s administration last month warned dozens of state agency heads of a significant shortfall in the current budget — but continues to officially report that finances remain in balance.

The $133 million revenue shortfall disclosed to agency heads on Sept. 6 was excluded 14 days later from the last official monthly budget forecast submitted to Comptroller Kevin P. Lembo.

Malloy’s top budget chief told Malloy’s commissioners that there was a deficit, yet day later, sought to mislead Lembo about the problem.  Lembo, in turn, provided the public with a report that wasn’t accurate.

Early last summer Governor Malloy and the Democratic members of the Connecticut General Assembly adopted an austerity budget that cut vital services.  Governor Malloy swore the budget was balanced when he signed it.  Months later, when they knew there was a budget deficit appearing, they decided to overlook that fact when issuing their required financial report.

Six weeks before this critical election, Team Malloy choose to mislead the public.

As the CT Mirror explains;

Shortly after the budget was approved, analysts noted that summer income, sales and corporation tax receipts were weaker than anticipated. Since then, administration plans to save money from layoffs have progressed much more slowly than anticipated, further raising concerns about whether the new budget was balanced.

Still, the administration has reported no problems with the budget since the fiscal year began on July 1. It’s last monthly budget projection, filed Sept. 20 with Lembo’s office, held that finances were in balance and that revenues for the General Fund — which covers most operating costs in the budget — were coming in as anticipated.

Yet two weeks earlier, in a Sept. 6 memo imploring all agency heads to keep their spending requests lean in the next budget, Barnes estimated that General Fund revenues in the current budget would total $17.75 billion — $133 million less than the amount needed to balance the current budget.

What is the public to think when the governor of the state of Connecticut lies to the public about the size of the budget deficit?

Of course, the sad reality is that this isn’t the first time Malloy and his team have mislead voters about the budget in order to hide the truth for political purposes.

Remember, this is the governor who refused to admit there even was a deficit in 2014 until 10 days after he was re-elected to a second term in office. It was only then that the public was told about the growing fiscal crisis that lead to this year’s disastrous budget deal.

 

Malloy Administration considering 64.5% tuition increase for 17,000 Community College students

Governor Dannel Malloy and the Democrat controlled General Assembly have already made record cuts to Connecticut’s public colleges and universities, cuts that have resulted in massive tuition increases and reduced services, but as the CT Mirror is reporting, Governor Malloy’s austerity budget strategies may now lead to a 64.5 percent increase in tuition and fees for more than 17,000 of Connecticut’s college students.

While Hillary Clinton, Bernie Sanders, Elizabeth Warren and other national Democratic leaders propose to make a community college education free in the United States, the Malloy administration is floating a proposal that would lead to a massive spike in cost for those attempting to get a college degree at one of Connecticut’s community colleges.

In, Steep tuition hike pitched for many community college students, the CT Mirror reports

Currently, students who pay full-time tuition can take up to 18 credit hours. A proposal that the Board of Regents’ finance panel will consider next Thursday would charge students $150 in tuition and $74 in mandatory fees for each credit they take over 12. A student who took 18 credit hours would be charged an extra $1,344 over the current cost of $2,084 a semester, a 64.5 percent increase.

[…]

There were 17,073 community college students who took more than 12 credits a semester last year, about one of every six community college students. If the colleges had charged for credit hours in excess of 12, the proposal estimates, the colleges would have collected $8.7 million in tuition revenue.

The Malloy administration’s strategy is likely a bait and switch effort to make an otherwise outrageous tuition increase look “reasonable.”

Considering the state of the economy and the socio-economic status of the students attending Connecticut’s community colleges, any major increase in tuition will mean fewer students getting the college education they need to live more fulfilling and productive lives.