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Rell releases plan to tackle $500 million deficit
Posted on 03/02/2010
By SUSAN HAIGH Associated Press Writer HARTFORD (AP) -- Gov. M. Jodi Rell offered her latest plan on Monday to close Connecticut's budget deficit, proposing to defer a $100 million payment to the state retiree fund and make many of the same cuts that legislative Democrats have previously dismissed. "These choices may not be easy but they are necessary. These choices may not be pleasant but they are crucial," said Rell, a Republican. The governor also proposed combining the Lincoln's Birthday holiday with President's Day for state employees in 2011 -- a move that would require union approval and save $3.2 million. Currently, state workers receive both days off. State Comptroller Nancy Wyman announced Monday that she predicts the budget deficit for the current year has climbed to $518.4 million. Rell's deficit-cutting plan, to be considered by state lawmakers, assumes a $504 million deficit. Rell included changes to next year's state budget because her deficit-cutting plan for this year spends $219.2 million in Rainy Day Fund money that was originally earmarked for 2011. To help fill that hole, Rell proposed the single holiday for state employees, a "hospital user fee" in 2011 that would raise $64.7 million, and additional spending cuts, and a $45 million reduction in state aid to cities and towns. Sen. Donald Williams Jr., D-Brooklyn, said Democrats would immediately review Rell's plan. Besides the current year deficit, the new fiscal year beginning July 1 is estimated to be about $700 million in the red. The General Assembly also needs to find a way to cover that deficit before the legislative session ends on May 5. Rell's deficit-cutting plan includes a list of unpopular cuts and fund transfers that she offered in previous proposals. For example, it calls for restricting vision and dental services for needy adults on Medicaid and transfers $5 million from the Stem Cell Research Fund, which finances stem cell initiatives in Connecticut. The plan also defers a $100 million payment to the state employee pension fund -- a budget-balancing option the unions agreed to last year should the state's deficit problems worsen.
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