May 27, 2011

GOVERNOR, LEGISLATIVE LEADERS AGREE TO PLAN TO CLOSE $400 MILLION GAP IN BUDGET

(HARTFORD, CT) - Governor Dannel P. Malloy, House Speaker Christopher G. Donovan and Senate President Pro Tempore Donald E. Williams today announced a plan to close the $400 million gap that exists in the biennium budget ( attached ).

"I'm pleased we've reached an agreement to close the $400 million gap. As promised, we've maintained our commitment to municipal aid, preserved the safety net and we have not asked for additional taxes. We are making additional spending cuts and using revenue that we otherwise would've put into the Rainy Day Fund," said Governor Malloy. "Let me be clear: the Rainy Day Fund will still receive funding, and we'll still pay down some debt. As I've said all along, the most important thing we can do is stabilize the state's finances, and getting this last agreement in place leaves us one step away from achieving that goal. The only thing that needs to happen now is for the SEBAC agreement to be ratified in a timely fashion. If it isn't, we're back to Plan B - something I don't think anyone wants."

Speaker Donovan said, "Once again, Governor Malloy has kept his promises. This plan continues to protect cities and towns, it keeps the safety net intact while making additional cuts, and it brings financial stability to our state."

"Connecticut is one-step closer to finally turning the corner on its budget crisis," said President Pro Tempore Williams. "The agreement to eliminate the budget gap with responsible spending cuts and new surplus revenue is the best option for Connecticut's struggling economy and job market. We protect local property taxpayers by not cutting municipal aid or education funding. The last piece of the puzzle is the $1.6 billion in savings and concessions from state employees. We encourage state employees to ratify the SEBAC agreement so we can avoid the draconian budget alternatives that would undermine Connecticut's economic recovery."

**Attached: Budget adjustment plan

###

For Immediate Release: May 27, 2011

Twitter: @GovMalloyOffice

Facebook: Office of Governor Dannel P. Malloy