Two Big “What Ifs?” for Governor Malloy and the Budget
Gov. Dannel P. Malloy is taking heat over a big deficit projected for after the election — and very little savings to offset it. He could have reduced that deficit and amassed more than enough reserves to cover it. But it would have meant ignoring big problems with town aid and workers’ pensions.
1. Backfill town aid?
WHAT IT DID: Gave towns more than $1 billion from FY 12 to FY 15 to replace the expired federal stimulus.
COST: $1,420,402,574
2. Bolster pension fund?
WHAT IT DID: Canceled provisions from the mid-1990s that allowed the state to defer pension contributions; took affect in 2012.
COST: $255,750,240
Emergency Budget Reserve (what's this?)
Projected FY 16 Deficit
Source: Office of Fiscal Analysis note for HB 5596; CT Conference of Municipalities; Office of the State Comptroller; Emergency Budget Reserve includes projected FY 14 surplus
Alvin Chang and Keith Phaneuf / CT Mirror