Besides facing a projected deficit of $365 million in the current fiscal year, the state is facing another deficit of $1.18 billion in the next fiscal year, Gov. Dannel P. Malloy said Thursday morning.
The latest fiscal projections show that the deficits will continue in the “out years’’ of 2014-15 and 2015-16. The projected deficits in those years are $958 million and $907 million, based on the state’s current services. The “current services’’ designation is important because that is a projection that is based on a whole series of factors and assumptions, which include but are not limited to the size of the workforce, current salaries, and various inflation factors. As such, the legislature is able to “cut’’ the current services budget without making the size of overall budget go down from one year to the next.
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6 Responses to State Deficit Now Grows To $1.1 Billion For FY 2014
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time to hire more state employees so they can spend and stimulate our economy.
Hey Dan layoff some state employees. Oh thats right you conveniently protected them from layoffs. No,you’re not in tight with unions. Dannel this stinks!
Actually that is a bit misleading. The “current services” designation is based on ALL state spending, not just the workforce (which is smaller than it was 2 years ago)and it’s associated salaries.
For reference, the largest area of spending – by far – is Medicaid, for which Connecticut is only reimbursed at 50% of expenditures by the federal government.
Second is employee salaries, but a very close third is grant funds to towns and (mostly) cities.
If large cuts are to be made, they must look at entire programs, not simply the people doing the work to implement them.
The taxing, borrowing, and spending is working! Now we only have to borrow and/or tax another $1B until the next deficit surprise! And who said liberals didn’t know how to balance a budget?
We are a ship of fools. We get what we vote for. Now live with it or move. Of course we could tax the rich and at the rate we are declining the rich will soon be 50K/year.
All of this debt…yet the work on the ‘boondoggle busway’ continues….