Runaway spending and sluggish revenue levels have caused Governor Malloy's 'shared sacrifice' budget to sink rapidly into deficit, with long-range deficits in the billions of dollars, State Representative Dan Carter (R-2) said today.
The Governor's budgetary office this week -- only days following the election -- placed the state's budget deficit at $365 million, with an enormous deficit of nearly $2 billion over the next two fiscal years.
The estimates, which represent a third consecutive decline in revenue, show lagging revenues in virtually every sector needed to balance the budget -- from casino revenue to sales and corporation tax collections.
"In 2011, we heard the Governor's call for 'shared sacrifice' and the promise of long-range surpluses following his historic $1.8 billion tax increase," said Rep. Carter. "However, overspending and refusal to make any meaningful reductions to the size and scope of state government has put us back at square one: staring down catastrophic deficits in the billions of dollars."
Meanwhile, majority Democrats passed legislation in June to delay the announcement of fiscal projections -- which were originally scheduled for release October 15 -- until after the election in order to prevent dismal economic projections from affecting their re-election efforts.
“It isn’t a surprise to me, considering I warned my constituents months ago of a shortfall approaching $400 million, despite accusations from the Governor’s office of political posturing.”
Due to the size of the deficit, the Governor is required by state law to develop a deficit reduction plan to present to the legislature.
“I stand ready to help the Governor and Democrats in the Legislature come up with a plan that does not resort to increasing taxes again, or cutting core government services, such as state funding to cities and towns."
The 2013 Legislative Session begins on January 9. Governor Malloy is expected to present his budget proposal to the legislature in early February.