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Deficits Persist In Future Years

by Christine Stuart | Apr 30, 2014 6:50pm
(11) Comments | Commenting has expired

CTNJ file photo

Ben Barnes

Gov. Dannel P. Malloy’s budget director told the news media Wednesday that the budget numbers end with 2015 and it would be wrong to report that there are deficits in 2016, 2017, and 2018.

However, if the consensus revenues adopted by the nonpartisan Office of Fiscal Analysis and Malloy’s budget office are compared to the spending estimates from legislative analysts, then there will be a $1.29 billion and $1.47 billion deficits awaiting the next General Assembly and governor.

“Spending has only been adopted through 2015,” Ben Barnes, Malloy’s budget director, said Wednesday. “We’re going to propose recommendations to adjust the appropriations for 2015. There’s no budget in place for any year after fiscal 2015. There’s no such thing, in my view, as a deficit or a surplus in years in which there is no appropriation in place.”

If that logic is applied to before Malloy took office, it would mean he did not inherit a $3.67 billion deficit.

“Um,” Barnes replied. “Eh. I don’t want to say that.”

“Obviously, I think being a month before the deadline for submitting a budget is a little different than being several years away from submitting a budget,” Barnes said.

When the Malloy administration took office in January 2011 it was tasked with submitting a budget to the General Assembly in the first week of February.

House Minority Leader Lawrence Cafero, R-Norwalk, said that using the Malloy administration’s new accounting method for estimating budgets, the deficit he inherited from former Gov. M. Jodi Rell would have been about $3.2 billion.

Cafero said Malloy is “quick to remind all of us that he inherited a $3.2 billion deficit.” But Cafero pointed to the projected $1.3 billion deficit in 2016 and the $1.8 billion tax increase Malloy signed in his first year. He said add up those numbers and you get to around the same amount of the deficit he inherited. 

“The bottom line is the state of Connecticut better off — the age old question — today than it was four years ago? The resounding answer by every fiscal indicator is ‘No’,” Cafero said.

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(11) Comments

posted by: art vandelay | April 30, 2014  8:31pm

art vandelay

Connecticut will be the next DETROIT sooner than later.  Keep up the good work Governor Malloy!

posted by: Lawrence | May 1, 2014  6:04am

The Republican “no gimmicks” budget has a $1.9 BILLION budget hole in FY 16-17. They admit that in their own documents.

So I wouldn’t talk about out-year budget deficits. The CT GOP spends all of the projected tax revenue, spends the same amount as Gov. Malloy, and has nearly the same size budget hole in coming years.

The big difference is they raise taxes $121 million.

posted by: Lawrence | May 1, 2014  8:41am

“The bottom line is the state of Connecticut better off — the age old question — today than it was four years ago? The resounding answer by every fiscal indicator is ‘No’,” Cafero said.”

It’s stunning that the press continues to quote this stuff and never fact-check it. Absolutely amazing.

So, the simplest thing to do is look at the 2009 Forbes business rankings compared to 2013.

Connecticut IMPROVED from 35th overall to 33rd overall. Connecticut IMPROVED its labor cost rank, growth prospects, and quality of life rankings.

Checking in with average household income, Connecticut IMPROVED from 2009 to 2013 ($66.9k to $67.2k) and continues to rank as one of the wealthiest states in America. 

From 2007 to 2011, CT’s per-capita bonded debt ranking compared to all other American states remained the same—#4.

posted by: jim black | May 1, 2014  9:19am

Detroit’s looking better and better. The best thing they have going is no Dannel Malloy.

posted by: FC | May 1, 2014  9:56am

Does anyone pay attention to the long-run?  CT has a dismal record over the past 25 years, worst jobs record in the nation, a complete absence of coherent economic development strategy—moderately better now—deteriorating infrastructure, failure to make strategic investments, etc.  CT simply wasn’t (and still isn’t) ready to compete in the global economy post 1990.  Malloy didn’t simply inherit a huge deficit, he inherited a state economy unable to compete.  He has made some very strong moves to generate long-term improvement (Bioscience CT and Jackson Labs look very promising), and some of the short-term initiatives—Business Express, First Five—have had some benefit.  But, despite billions in approved bonding, he hasn’t push restoration of our dilapidated infrastructure, secured a European connection for Bradley, or—critically—put high-speed rail connection into New York at the top of the agenda. 

Perhaps the poster child now is that the single largest data center in Boston has more square footage than ALL of the data centers in CT.  In the Age of Big Data, how can you pretend you understand the competitive environment when you lag so badly on this critical piece of the economic picture?  And of course CT has to IT policy or strategy. 

Unless and until the political leadership on both sides of the aisle better understand the nature of the competitive environment, we will continue to struggle.

posted by: justsayin | May 1, 2014  10:22am

Lawrence neither side is addressing the real issues. The problem is Malloy claims he has fixed the issues, not true. We are not better off, the list is long. Your data is skewed by those who have worked hard enough to earn a very good living, down on the coast.

posted by: art vandelay | May 1, 2014  10:48am

art vandelay

@Lawrence,
I would not consider Forbes Business Ranking from 35 to 33 an “IMPROVEMENT”.  Connecticut should strive to be in the top 10 in EVERY category.  We’ll never reach those goals with the current crop of people we have in Hartford today Democrat or REPUBLICAN!.

posted by: DirtyJobsGUy | May 1, 2014  11:50am

I was on one of the last Bradley to Amsterdam flights in Business Class.  It was very convenient but NWA did not put a competitive product out.  However it died due to loss of clients.  As UTC and others cut back fewer guys were sent to Europe.  (And the tourists always went for the cheapest fare which was in NYC).  Once again, support for business is the key. Not just lower costs, but a sincere attitude that we think business is a good thing in and of itself, not just a way to get graft and tax dollars.

posted by: GBear423 | May 1, 2014  4:43pm

GBear423

You know this “I inherited it” phrase, it’s a load of crap, coined by a load of crap. You seek an office and are fortunate to get elected, you know what you’re getting yourself into. 

That said, I am so glad Christine employed it.

posted by: StillRevolting | May 2, 2014  7:09pm

Hi Lawrence, I don’t want to say you are making this too easy so, I’ll just thank you for helping make my point. Let’s take your average household income figure which represents a $300 increase over 4 years. If that wasn’t pathetic enough, let’s factor in the $700 per household per year that Malloy and the confiscatory statists in the legislature have stolen from every family in Connecticut with their record tax increase. That’s right folks it would be a net negative of $1100 per household if we consider the relevant numbers which are a total increase of $300 and two years of $700 having been stolen during each of those years. What took each family 4 years to scrape together was more than wiped out with the stroke of a pen. Would you care to try to quantify exactly what we’ve gotten for that? I’d love to fiddle with another set of numbers like the ones you posted above.

posted by: Hebee | May 6, 2014  5:43am

Obviously, “Lawrence” is Dan Malloy’s CTNJ screen name .