February 16, 2011

GOVERNOR MALLOY'S BUDGET:

CREATES JOBS, SHARES THE SACRIFICES THAT NEED

TO BE MADE, AND IS BALANCED WITH NO GIMMICKS

(Hartford, CT) - Governor Dannel P. Malloy unveiled his biennial budget today, covering fiscal years 2012 and 2013. The budget includes investments in job creation, as well as cuts in spending, concessions from state employees and tax increases in approximately equal measures, while keeping the safety net intact and supporting business and industry as they create jobs.

"This budget's main focus is job creation," said Governor Malloy. "It's balanced honestly, with no gimmicks and there is no new overall spending in the general fund. Moreover, it preserves the safety net and protects local services by actually increasing aid to cities and towns. I've spoken at length about shared sacrifice, and I think this budget explains what that means - I'm asking for a little from everyone to avoid overburdening any one group. And I refuse to balance the budget on the backs of local taxpayers."

The Governor put forward a balanced budget for both fiscal years that establishes a commitment to Generally Accepted Accounting Principles (GAAP). The budget funds operating expenses using existing revenue and limits borrowing for long-term capital investments, such as transportation infrastructure improvements.

The budget illustrates Governor Malloy's continued efforts to make government less costly and more efficient. As promised, Governor Malloy has already decreased the size of his executive staff by 15%, and he has proposed reducing the number of budgeted state agencies from 81 to 57 - a 30 percent cut.

With a focus on creating and retaining Connecticut jobs, Governor Malloy proposed a new "First Five" program which will offer incentives for companies that are creating at least 200 jobs in the state. To help repair and refurbish the state's aging transportation infrastructure, Governor Malloy is also proposing over a billion dollars in capital investments, as well as an additional $130 million for affordable and supportive housing and $15 million for tourism marketing to help attract visitors to our state.

Governor Malloy's budget will protect local services-cities and towns will receive the same level of Education Cost Sharing funding this year as they did last year, and they will further benefit from receiving a portion of tax revenue from local sales. This will enable cities and towns to achieve additional revenue without raising property taxes.

The budget also protects the most vulnerable Connecticut residents by avoiding major service reductions in safety net programs, funding caseload growth for Medicaid, the Department of Children and Families, the Department of Developmental Services and the Department of Mental Health and Addiction Services.

Governor Malloy also proposed an additional $1.5 billion in new revenue, 81 percent of which is paid for by individuals, and 19 percent of which is paid for by businesses. For filers who qualify for the federal Earned Income Tax Credit, a new state EITC at 30% of the federal level will help reduce the overall tax burden incurred through state taxes and the sales tax.

Additionally, Governor Malloy is proposing $758 million in spending reductions; for example, the elimination of the unit that regulates charitable gaming as well as the elimination of outside management contracts for CT Transit. In addition, risk reduction credits for inmates will help save the state $3.8 million. State employees are also being asked to find $1 billion in savings and concessions annually.

Earlier this week, Governor Malloy announced a series of 17 town hall meetings which will allow him to speak directly with Connecticut citizens who have concerns, ideas and suggestions. If passed by both Chambers, the budget will go into effect on July 1, 2011.

*** Click here to read Governor Malloy's FY 2012-2013 Budget

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For Immediate Release: February 16, 2011

Twitter: @GovMalloyOffice

Facebook: Office of Governor Dannel P. Malloy