HARTFORD, Conn. (AP) - Democratic Gov. Dannel P. Malloy’s budget director suggested Thursday that Gov.-elect Ned Lamont consider canceling some planned tax cuts and scaling back eligibility for a program that helps Connecticut seniors cover Medicare expenses to help balance the state’s budget when he takes office next year.
Office of Policy and Management Secretary Ben Barnes’ list of budget-cutting suggestions to the Democratic businessman also included cutting municipal aid where appropriate, reducing state employees through attrition, and transferring the cost of teachers’ pensions to local school districts - an unpopular proposal Malloy has proposed in the past.
“These options would be difficult, and would involve real sacrifice by various constituencies,” Barnes noted in a letter to Lamont. “But if the General Assembly is willing to work with you on a combination of such ideas, closing the fiscal year 2020 shortfall without a tax rate increase is achievable.”
Barnes noted that Lamont will face a projected $1.7 billion shortfall in state’s main spending account in 2020. It’s predicted to grow to nearly $2.4 billion the following year. Connecticut’s state budget is typically about $20 billion a year.
Barnes was required by state law to transmit a tentative budget to the governor-elect. He noted how the document is intended to be a “starting point” for Lamont’s first tax-and-spending plan, which is expected to be released in February. Besides possible areas to cut, Barnes mentioned possible revenue-generating opportunities, such as on-line sports gambling, recreational marijuana sales or highway tolls.
“This year is like so many in recent memory, with significant budget challenges to confront,” wrote Barnes in a letter to Lamont. He also warned of “significant new problems” in the current bipartisan budget that ends June 30, such as promises of tax cuts and the reliance on some one-time revenues, which could make Lamont’s new job even more difficult.
Barnes’ letter and suggested budget come the same day Lamont announced volunteer members of a steering committee that will advise him on certain policy areas, including education, health care and government data. The 20 members include representatives of organized labor, both Democratic and Republican elected officials, nonprofit advocates, business executives and attorneys. They will work with the five leaders of the transition team Lamont announced following his Election Day victory. The list includes Republican New Britain Mayor Erin Stewart, retired state Police Lt. J. Paul Vance, and former Connecticut Supreme Chief Justice Chase Rogers.
“We will continue to look at reorganizing government, ensuring greater efficiency and bringing new ideas to make our state stronger,” Lamont said.
While much of Barnes’ letter focused on challenges Lamont will face next year, the OPM secretary credited the Malloy administration with taking steps to put the state budget on more stable footing, such as restructuring the state employee pension system. He said the state’s “strong economy and growing revenue will likely be wind at your back as the budget process unfolds in the coming months.”
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