Rell: State agencies must cut back
HARTFORD, Conn.—Gov. M. Jodi Rell said Friday she'll order state agencies to make cuts of up to 3 percent in their budgets to help Connecticut cope with a looming deficit.
The fiscal year that ends June 30 is projected to finish $68 million in the red.
Rell said she wants to keep the state from joining nearly three dozen others with sizable deficits. She has ordered state agency heads to eliminate all but essential spending.
"The state needs to do what the families of Connecticut are already doing, and that is continue to cut back and do without," Rell said.
The governor and majority Democrats in the legislature say because of the uncertain economy and growing budget deficit they will stick with the tax and spending plan approved last year, forgoing any new spending for nursing homes, nonprofit agencies and cities.
"There are a lot of worthy and well-intentioned proposals to increase spending out there. I know some of them were mine. But we cannot afford them," she said.
House Speaker James Amann said the shortfall persuaded lawmakers that they were better off keeping the $18.5 billion budget approved last year. It still increases spending by 4 percent.
Amann said if changes need to be made, the governor can make reductions using her executive authority. The governor has the ability to cut 3 percent of the entire budget, but not more than 5 percent in any agency. She cannot touch municipal aid or entitlements.
"We believe the best thing we can do for the state of Connecticut is to go on our biennial budget and basically do a few more bills and go home," Amann said. "We're prepared to help the governor in a way we can, in the future, if needed."
He said the state also has a cushion of $1.4 billion in the rainy day fund if the economy worsens and revenues slow even more.
The news came as a surprise and disappointment to groups at the Capitol lobbying for additional funding. It also angered legislative Republicans, who've suggested that an early retirement incentive program could help raise some much-needed cash.
Lawmakers have been negotiating with the Republican governor for days on a retooled budget that included increased spending in some areas. Talks apparently ended Friday afternoon. Rell said lawmakers didn't come up with enough cuts to cover the extra spending they wanted.
Rell said she's been assured, however, that $10 million can be found to pay for more prosecutors, state police, parole officers and other criminal justice programs. That crime bill, which Rell had threatened to veto, stems from deadly home invasions in Cheshire and New Britain.
But she asked legislators to stop sending her bills that call for spending. The legislative session ends on Wednesday at midnight.
Senate President Pro Tem Donald E. Williams Jr., D-Brooklyn, said he was disappointed that a deal couldn't be reached. Williams said they were "very, very close" and that sticking with the old budget was a "default position" that he's not happy with.
"We've gone to the mat. We have fought very hard for important priorities. We've tried to revise the second year of our two-year budget so it reflects those priorities and meets critical needs out in the state," he said.
Williams said a deal couldn't be reached because the Rell administration has difficulties closing the deal.
Republicans were miffed by the apparent decision to make no budgetary changes. They plan to offer amendments until the end of the session on May 7 that include their budget proposal, which calls for an early retirement incentive program to raise money.
House Minority Leader Lawrence J. Cafero, R-Norwalk, said times have changed dramatically since that 2008-09 budget was passed and the legislature should take action.
"Doing nothing is not an option and we have to do something," Cafero said.
