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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, 29 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). Connecticut's Office of Policy and Management is currently anticipating revenue deterioration of $170.4 million for FY09, contributing to a projected deficit of $150 million.
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.
Resources and Publications
- Is It Raining Yet? The Governor's Rescissions to the FY 09 Budget
Report by CT Voices for Children.
- 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.
- Testimony on Budget Rescissions
- 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.
- 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.
- Budget deficit estimates from Governor's office
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Is It Raining Yet? The Governor's Rescissions to the FY 09 Budget
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Although State Fiscal Year 2009 does not begin until July 1, Governor Rell already has ordered budget rescissions (cuts) to this budget. The Governor's rescissions will inflict unnecessary pain at a time when families are struggling to make ends meet in a difficult economy. They include cuts to safety-net programs (Temporary Assistance to Needy Families, housing/homeless services, State Administered General Assistance); education (State Dept. of Education, University of CT, Regional Community-Technical Colleges, and CT State University); criminal justice (alternative incarceration programs, juvenile justice centers, youthful offender services), and vulnerable children and youth (Children's Trust Fund, Dept. of Children and Families, Commission on Child Protection ). There were 21 state agency budgets cut by more than $1 million each.
Connecticut has a Rainy Day Fund for times just like this, when the economy is faltering, revenues are slipping, but the need for state and local services is at a high. With close to $1.4 billion in reserve, making cuts in the FY 09 budget -- particularly to "safety-net" programs and to core governmental functions essential to the state's and families' economic success, such as education -- is short-sighted and unnecessary. If we don't use the Rainy Day Fund when it starts to rain, what is the point of having it?
Download this publication from Connecticut Voices for Children.
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