Debt Costs, Shrinking Revenues Taking Big Toll on Next CT Budget

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Debt Costs, Shrinking Revenues Taking Big Toll on Next CT Budget

By KEITH M. PHANEUF | CTMirror.com

Surging debt costs and shrinking revenues alone will force state officials to cut $1.1 billion to $1.3 billion out of the next state budget to avoid tax hikes, according to separate analyses from two fiscal agencies.

But the Fiscal Accountability reports from Gov. Dannel P. Malloy’s budget office and from the legislature’s nonpartisan Office of Fiscal Analysis still don’t reflect the full reduction discretionary programs probably would face to stave off tax hikes.

Because of a change in format ordered last May by Malloy and the legislature, these reports no longer project cost changes in all segments of the budget, including contractually mandated pay hikes for unionized state employees.

The new format also stops the two offices from providing updated deficit or surplus projections for the next three fiscal years — a move that remains controversial among some legislators. The last warning legislators received from nonpartisan analysts came in September, when they projected state finances, unless adjusted, would run… FOR MORE CLICK HERE

 

 

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November 28, 2016

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