News
Fiscal 2009 budget cuts at state agencies, commissions announced
By Governor Rell's office
Jun 24, 2008 - 12:12:14 PM

Governor M. Jodi Rell today announced she is ordering Fiscal 2009 budget cuts of 3 percent to 5 percent at state agencies and commissions to offset an anticipated shortfall of about $150 million in the fiscal year that begins July 1.

In letters to the chairs and ranking members of the Appropriations Committee and the Finance, Revenue and Bonding Committee, the Governor said the economic environment has changed since the two-year budget plan was adopted in June 2007.

“The economic slippage that began last summer with the national mortgage credit crunch has continued,” Governor Rell said. “Personal income – which increased in our state by 6 percent in Fiscal 2007 – is expected to grow by just 2.9 percent in Fiscal 2009. Although unemployment in Connecticut has generally remained lower than the national average it is still higher now than it was a year ago, while housing starts are down 42 percent from their peak and prices remain weak across the state. Food prices, gasoline prices and other energy prices are at frankly absurd levels.

“Making cuts like these is never a welcome or easy process – any more than families across Connecticut have welcomed the difficult choices they have had to make about food purchases, energy costs, vacation cutbacks or other savings measures,” the Governor said. “Wherever possible, I have tried to make sure that agencies with the greatest public safety or human services roles have borne the smallest cuts. The essential work of government will continue and we will get by, just like our families.

“Even with the rescissions I am ordering and the other economy measures I have already put into place such as a hiring freeze, a ban on out-of-state travel paid for with state funds and cuts in state gasoline usage, I expect we will need to find additional savings,” Governor Rell said. “I will be looking to the General Assembly to work with me down the road to identify other areas where we can reduce expenses to keep our budget in the black.

“Every one of the states around Connecticut faces a much larger budget hole than we do – and I intend to keep it that way,” the Governor said. “The savings measures I have ordered in recent weeks have trimmed the deficit in the current fiscal year from nearly $53 million last month to just under $20 million this month. I have every intention of ending this year – and next – in the black if at all possible.”

The General Fund rescissions Governor Rell is ordering total about $139.7 million. However, because of current-year deficiencies, the net figure for General Fund rescissions is about $104.2 million.

Special Transportation Fund rescissions total about $19 million, net of adjustments for the current fiscal year. Rescissions to all funds – including the Banking Fund, Insurance Fund and others – net about $125 million.

The cuts are being ordered under authority granted to Governor Rell in Section 4-85(b) of the Connecticut General Statutes. Because they do not exceed 5 percent, no legislative approval is required.

The statute does not allow the Governor to cut aid to municipalities. In addition, as a practical matter, the Governor is constrained from cutting appropriations for entitlement programs or pension and health benefits for state employees and retirees – expenditures that comprise much of the budget.

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