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CT budget deficit doubles in 2 days

Associated Press

Updated: Jan 26, 2012 7:55 PM

HARTFORD, Conn. (WTNH) — Lawmakers are bickering over how to get the state budget under control while the Governor is away.

While overseas to promote Connecticut to world business leaders, some back home say the Governor's own business is unraveling.

On a telephone conference call from Switzerland today Governor Malloy said the adjustments he announced earlier this week will handle the growing state budget deficit which has nearly doubled in the past two days.

"Governor Malloy needs to be honest with the real budget figures for the people of the state of Connecticut.  Up until a week ago, he was predicting that our state budget was balanced and would even have a surplus," said Sen. John McKinney/(R) Minority Leader.
       
On Tuesday his budget chief said the deficit was $75 million and minor cuts in spending here and there would handle it.  Today a new estimate places the gap at $145 million.

"It's not working the way he thought it was, and that we need to cut spending, he needs to have the legislature participate in that he cannot do it on his own," said Rep. Larry Cafero/(R) Minority Leader.
      
The Governor has limited authority to cut spending on his own, but his administration still contends they can do it.

"I don't think this in any way means that the revenue package was incorrectly estimated or does not accomplish what we set out to accomplish," said Ben Barnes/State Budget Director.
      
Republican leaders said it is clear evidence that the across the board tax hikes are just not bringing in enough to support the Governor's spending.

The budget director said despite the red ink, Sales and Income tax receipts are trending the right way.

"We're seeing six or seven percent growth in retail sales and we're seeing up to ten percent growth in wage income, which are supporting strong revenues," said Barnes.

"Unfortunately the response we get from Governor Malloy is to bury his head in the sand, pretend everything's okay and ignore the real deficits that we're facing," said McKinney.

During that conference call from Switzerland today, the Governor said that if deeper cuts in spending are really needed he will propose them in his speech to the legislature in two weeks.

Copyright 2012 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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