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Connecticut's Emerging State Budget Crisis
The current economic crisis creates challenges for state governments trying to meet their budgets just as it does for families throughout America. Currently, 42 states, including all six New England states and neighboring New York and New Jersey, are facing budget gaps for FY09 (the state fiscal year which in Connecticut runs from July 1, 2008 through June 30, 2009). As of February 2009, Connecticut's Office of Fiscal Analysis projected state budget deficits of $1.35 billion in FY09, $3.97 billion in FY10, and $4.71 billion in FY11.
With widespread agreement that the next few years will be challenging ones on the state budget front, creative solutions will be needed that preserve the programs and services that make Connecticut a great state in which to raise families. Research undertaken at Connecticut Voices for Children will inform these critical debates. During these challenging times we can make budget choices that make Connecticut stronger and help our families and communities prosper.
CT Voices Briefs and Presentations
Also see State Tax & Budget reports by CT Voices
- Early Care and Education Budget Rescissions. November 2009.
- Early Care and Education Proposed Budget Comparisons. September 1, 2009
- Spreadsheet analysis of the Governor’s July and August Allotments for Early Care and Education. August 11, 2009 (PDF)
- Spreadsheet analysis of Governor's July and August allotments for General Fund agencies. August 3, 2009 (PDF)
- Now Is Opportune Time For Connecticut To Adopt A More Progressive Income Tax. Op-ed by Jamey Bell and Douglas Hall, New London Day, May 31, 2009 (PDF)
- Connecticut’s Business Taxes in Context: A Summary of Ernst & Young’s National Survey of State and Local Business Taxation. April 2009 (PDF)
- State Revenue Solutions for Connecticut. Resource page on revenue options. April 2009 (PDF)
- Building a Reliable, Fair and Accountable 21st Century Revenue System. April 2009 (PDF)
- State Budget Challenges Facing the 2009 General Assembly Session. April 2009 (PDF)
- "No Time to Lose: Budget Choices for a Stronger Connecticut." Presentation by Shelley Geballe, Connecticut Voices for Children. March 4, 2009. (PDF)
- Analysis of Governor's Proposed Fiscal Year 2010 Budget
- "Never Waste a Crisis: Options for a Stronger Connecticut". Presentation by Douglas Hall, Connecticut Voices for Children. February 17, 2009. (PDF)
- "Revenue Options for a Stronger Connecticut". Presentation by Douglas Hall, Connecticut Voices for Children. February 6, 2009. (PDF)
- Follow the Money! FY 2009, 2010, 2011…State Fiscal Challenges. Presentation by Shelley Geballe, Connecticut Voices for Children. January 2009. (PDF)
- "Never Waste a Crisis": State Fiscal Challenges and Revenue Options. Presentation by Shelley Geballe and Douglas Hall, Connecticut Voices for Children. December 2008. (PDF)
- Property Tax Cap: The Wrong "Cure" for High Property Taxes. Presentation by Shelley Geballe, Connecticut Voices for Children. November 13, 2008. (PDF)
- "Follow the Money" budget presentation by CT Voices on FY 2009 State Fiscal Challenges. (PDF)
- Public Investment for a Mediocre Future: Where Connecticut Stands On State and Local Revenues Report by CT Voices for Children.
- Is It Raining Yet? The Governor's Rescissions to the FY 09 Budget
Report by CT Voices for Children.
Governor Rell and State Departments
- State Agency Budget Cut Options
State agency proposals to cut funding in response from a directive from the Office of Policy and Management for each agency to submit a 5% reduction options for FY 2010/2011. NOTE: All proposals must still be evaluated by OPM and the Governor and may or may not actually be included in the Governor's proposed budget.
- Informational Forum: Governor’s Deficit Mitigation Plan. Presentation for the Joint Committee on Appropriations by Secretary Robert L. Genuario. December 9, 2009. (PDF)
- Deficit Mitigation Plan for Fiscal Year 2010. November 24, 2009. (PDF)
- Letter from Office of Policy and Management concerning cuts to agency budgets. September 30, 2009. (PDF)
- Letter from Chief Court Administrator Barbara Quinn concerning "Impact of $12.8 million cut to Other Expenses." October 1, 2009 (PDF)
- OPM Secretary Letter to State Agencies on FY 10 Budget Implementation. September 17, 2009 (PDF)
- September 2009 Budget Allotment. September 2, 2009. (PDF)
- Governor Rell’s FY10 and FY11 Budget Proposal. July 30, 2009.
- August 2009 Budget Allotment. July 30, 2009
- Executive Order on state operations and Fiscal Year 2010 July Allotment. June 30, 2009
- Governor's additional FY2010 - FY2011 budget proposals. May 28, 2009. (PDF)
- CT Department of Developmental Services Pending Changes. May 2009. Summary by Connecticut Family Support Network (PDF)
- Informational Brief on Care4Kids Program Changes. May 15, 2009. CT Dept. of Social Services (PDF)
- Governor's Deficit Mitigation Plan for Fisal Year 2009. February 19, 2009. (PDF)
- Governor's FY2010 - FY2011 Biennium Budget Proposal. February 4, 2009.
- Governor Rell's Deficit Mitigation Plan for FY 2008-2009. December 17, 2008.
- Office of Policy and Management's "Fiscal Accountability of State Government" Presentation to the Appropriations Committee and the Finance, Revenue, and Bonding Committee. November 18, 2008. (PDF)
- Budget deficit estimates from Governor's office
- State Agency Budget Cut Options
State agency proposals to cut funding by 10%, along with a few proposals to expand programs. NOTE: All proposals must still be evaluated by OPM and the Governor and may - or may not -- actually be included in the Governor's proposed biennial budget.
- OPM Secretary Letter to State Agencies. Sept 5, 2008.
Requesting proposed budget reductions of 10%.
- Governor Rell's Online Budget Forum
- Governor Rell's October 21, 2008 Deficit Mitigation Plan. (PDF)
- DSS Commissioner Starkowski's Presentation on State Budget. October 2, 2008.
Presented to the Connecticut Association for Home Care and Hospice.
- Second Round Rescissions Approved by Governor Rell. September 2008.
- DSS Presentation on FY 09 Rescissions, HUSKY, and Charter Oak. July 30, 2008 (PDF)
- OPM Letter to Comptroller Wyman, July 21, 2008 (PDF)
The FY 08 budget is projected to end with a surplus of $22.3 million, in part due to $33.2 million in June spending reductions, and revenues that are higher (and tax refunds that are lower) than were projected last month. In addition, about $150.8 million of FY 08 appropriations "lapsed" June 30. This OPM letter to the Comptroller explains these changes, and lists the agency lapses.
- Testimony on Budget Rescissions
- Governor Rell's First Round of Rescissions for Fiscal 2009. June 24, 2008.
- OPM-Authorized Carry-Forwards from FY 08 to FY 09 (PDF)
Under state law (Conn. Gen. Stat. section 4-89(c)), OPM has some limited legal authority to authorize the carry-forward of unexpended funds from one state fiscal year to the next. This spreadsheet identifies the OPM-authorized carry-forwards from FY 08 to FY 09.
- OPM's May 2008 Notice of the State Hiring Freeze and Associated Guidelines (PDF)
- Office of Policy & Management (OPM) Presentation on Impact of the FY 2009 Budget Rescissions (PowerPoint)
General Assembly (including Office of Fiscal Analysis)
- General Assembly budget bills - approved December 21, 2009
- Fiscal Forecast Presentation to the Appropriations and Finance Committees. Office of Fiscal Analysis. November 18, 2009 (PDF)
- Fiscal Accountability of State Government. Presentation to Appropriations and Finance Committee. Office of Fiscal Analysis. November 18, 2009 (PDF)
- FY 10 - FY 14 General Fund and Transportation Fund Budget Projections and Fiscal Information. Office of Fiscal Analysis. November 13, 2009 (PDF)
- "Budget Book." Connecticut State Budget 2009-2011. Office of Fiscal Analysis. November 2009.
- Highlights of the 2009-2011 Biennial Budget. Office of Fiscal Analysis. August 31, 2009.
- Democratic Leadership Budget (HB 6802). August 31, 2009. (PDF)
- Appropriations Committee Budget Plan, FY10 and FY11. July 30, 2009 (PDF)
- Finance Committee Revenue Plan, FY10 and FY11. July 30, 2009 (PDF)
- General Assembly biennium budget bill (approved June 26). Bill text and analysis.
- FY 09 - FY 11 General Fund and Transportation Fund Budget Projections, Office of Fiscal Analysis. May 1, 2009 (PDF)
- Appropriations Committee FY 2010-2011 Budget Proposal. April 2, 2009
- Finance Committee FY 2010-2011 Revenue Proposal. April 2, 2009
- FY 09 - FY 12 General Fund and Transportation Fund Budget Projections, Office of Fiscal Analysis, February 2, 2009 (PDF)
- General Assembly Deficit Mitigation Plan for FY09. Approved January 14, 2009. (See bill analysis for summary.)
- Office of Fiscal Analysis' "Fiscal Forecast Presentation to the Appropriations & Finance Committees". November 18, 2008. (PDF)
- FY 09 - FY 12 General Fund and Transportation Fund Budget Projections and Fiscal Information. Office of Fiscal Analysis. November 14, 2008.
- Office of Fiscal Analysis' Review of Governor Rell's October 21, 2008 Deficit Mitigation Plan. (PDF)
- Republican Budget Briefing. September 25, 2008
- Office of Fiscal Analysis, Budget Book: 2007-2009 Revisions. August 2008 (PDF)
Includes changes in revenues and appropriations (in the "do nothing" budget), as well as Governor's rescissions and holdback in FY 2009 budget.
Comptroller Nancy Wyman
Federal Government
Better Choices for Connecticut
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Most of Connecticut's Top Employers Already Are Subject to Mandatory Combined Reporting in Other States
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Corporate tax loopholes reduce the revenues that are available to support the education, public safety, health, environmental, and tranportation services on which Connecticut's families and businesses rely. Under Connecticut's current corporate tax rules, multi-state corporations are able to artificially shift their profits to subsidiaries operating in states that do not tax businesses, enabling them to avoid paying Connecticut corporate income taxes. For several years, Connecticut has actively considered the adoption of mandatory combined reporting, a powerful tool for cracking down on common tax avoidance strategies used by multi-state corporations.
This study, based on an extensive review of public records, debunks concerns that mandatory combined reporting will impose unreasonable administrative burdens on Connecticut companies or prompt large employers to leave Connecticut. The vast majority of Connecticut's largest employers (86%) already operate in other states with mandatory combined reporting. These requirements, already in place in most states with corporate income taxes, have not persuaded these firms to relocate their facilities.
Download this publication from Connecticut Voices for Children.
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