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State Budget

September 2, 2010

Unchanged since 1991, sales tax now is part of deficit equation

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By Keith M. Phaneuf

The state income tax has dominated legislative revenue debates since its controversial enactment nearly two decades ago.

But the sales tax, whose base rate of 6 percent hasn't changed since that watershed debate in 1991, may be back in the spotlight next year as politicians begin the task of closing the largest projected budget deficit in state history. Read more

September 1, 2010

Wyman confirms deficit for new budget

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By Keith M. Phaneuf

State Comptroller Nancy Wyman certified a $60 million-plus deficit this afternoon for the new fiscal year, even as she closed the books last year with a final surplus of nearly $450 million. Read more

September 1, 2010

Rising prison population dampens hopes of budget relief

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By Keith M. Phaneuf

Connecticut's prison population is heading for its fourth consecutive monthly increase, a trend likely to put a damper hopes that a prison closure could help balance the state's budget. The population approached 18,600 Tuesday, largely because of a jump in the number of unsentenced inmates. Read more

August 31, 2010

Towns fear a sharp decline in state education assistance

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By Keith M. Phaneuf

Though state government's impending fiscal woes are well-documented, a new report shows local schools also could suffer from a potential drop in state aid 10 months from now. And despite the pleas of municipal leaders, legislators and gubernatorial candidates said Monday they can't make any promises. Read more

August 20, 2010

A new fiscal year: state budget already in the red

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By Keith M. Phaneuf

Optimistic assumptions about federal aid and social service caseloads came back to haunt state officials Friday as Connecticut's $19.01 billion budget, barely out of the gate, stumbled more than $60 million into deficit.

Rising income and sales tax receipts weren't enough to offset entirely a $193.4 million shortfall in federal stimulus grants and $171.7 million in projected cost overruns. Read more

August 20, 2010

State budget falls $63.4 M into the red as federal aid comes up short.

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By Keith M. Phaneuf

State government's $19.01 billion budget is $63.4 million in deficit, just seven weeks into the new fiscal year, due to a shortfall in anticipated federal funding and higher than expected demand for social services, Gov. M. Jodi Rell's budget office reported today. Read more

August 20, 2010

Rell official: Tighten retirement benefits

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By Keith M. Phaneuf

The state can save $300 million a year by boosting worker pension contributions, raising retirement ages and developing a 401(k)-style retirement plan for new employees, a top budget official says. Read more

August 19, 2010

Rell official proposes dramatic new restrictions on worker retirement benefits

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By Keith M. Phaneuf

Gov. M. Jodi Rell's deputy budget director unveiled a new plan today to shave $300 million off annual pension costs by boosting worker contribution rates, raising retirement ages and developing a new 401 (k)-style retirement plan for new employees.

The proposals, offered to the governor's Post Employment Benefits Commission, were part of a larger plan to stabilize the Connecticut's severely under-funded pension program that also includes an end to retirement incentive programs and larger annual contributions by state government. Read more

August 19, 2010

Lawmakers now say funding board could save money

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By Keith M. Phaneuf

State government's new contract watchdog agency is one of many that have faced budget cuts in recent years.

But lawmakers now wonder whether the decision to strip the Contracting Standards Board of funding this year is costing more than it's saving. Read more

August 18, 2010

Bonding debate could spill into 2011 session

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By Keith M. Phaneuf

and Mark Pazniokas

While the planned New Haven-to-Springfield commuter rail line cleared a big fiscal hurdle Tuesday with $260 million in new state funding, it became the focal point of a new debate about state borrowing likely to be carried over into next year's legislative session. Read more

August 17, 2010

Bond panel approves $260M for commuter rail, GOP members protest 2009 borrowing taken from capital projects

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By Keith M. Phaneuf

and Mark Pazniokas

The state Bond Commission approved Gov. M. Jodi Rell's request for $260 million to help fund the planned New Haven-to-Springfield commuter rail line today.

But the approval only came after two of the governor's fellow Republicans opposed it to protest a Rell-approved plan to borrow $580 million in 2009 from future capital projects to help government pay its bills. Read more

August 17, 2010

Top state lawmakers aren't worried about federal aid shortfall

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By Keith M. Phaneuf

Top lawmakers are optimistic that even if new federal stimulus rules punch a $156 million hole in the state budget, rising tax revenues will cover most of the gap.

"We have to see the overall picture develop over the next couple of months, but right now things are looking good," House Speaker Christopher G. Donovan said. Read more

August 14, 2010

Federal aid rules could be good for towns, bad for state budget

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By Keith M. Phaneuf and Robert A. Frahm

Connecticut's school districts could be in line for a major economic boost this fiscal year, thanks to the new extension of federal stimulus funding - and a political miscalculation by the General Assembly and Gov. M. Jodi Rell.

The $109 million in potential good fortune for local schools also could be part of a new $156 million hole in the state budget. Read more

August 13, 2010

State borrowed from capital program to keep budget afloat

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By Keith M. Phaneuf

Nearly $600 million borrowed from future capital projects to help state government pay its bills has thrown a wrench into Gov. M. Jodi Rell's efforts to bond another $260 million for the planned New Haven-to-Springfield commuter rail line.

Legislative leaders are asking why the $580 million in short-term borrowing - approved in April 2009 when the state was more than $1 billion in deficit - still hasn't been repaid. Read more

August 3, 2010

States making employees work longer for retirement benefits

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By Keith M. Phaneuf

When it comes to pushing back the retirement age for state employees, Connecticut is testing waters that many states have plunged into over the past year.

A new report from the National Conference of State Legislatures found 10 states have passed laws this year to keep public-sector employees working longer. Read more

August 2, 2010

Wyman confirms $393M surplus

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By Keith M. Phaneuf

State Comptroller Nancy Wyman confirmed this afternoon that Connecticut appeared to close the last fiscal year $393.3 million in the black.

That forecast, up $150 million from projections issued last month, should enable state officials to reduce planned borrowing to support the current budget. Read more

July 28, 2010

Union uses attack on longevity bonuses to rally workers

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By Keith M. Phaneuf

A major state employee union is using last spring's unsuccessful bid to cancel longevity bonuses for senior, non-union state employees to rally support for its long-running battle to allow managers to bargain collectively.

An affiliate of the Connecticut State Employees Association/Service Employees International Union sent out letters last week to about 2,500 non-union managers reminding them of a March 11 proposal from the House Republican Caucus to cancel about $4.7 million in bonus payments due in April. Read more

July 28, 2010

Report shows age is catching up with Connecticut's transportation network

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By Keith M. Phaneuf

Connecticut's transportation network is facing its own perfect storm of aging infrastructure, heavy usage and harsh weather conditions - all compounded by a slumping economy and shrinking government funding, according to a draft report from the state's Transportation Strategy Board.

The position paper outlining transportation needs, the first of four components that will ultimately comprise the board's 2011 update to its statewide transportation strategy, warns this confluence of bad conditions could require a major investment - despite the state's fiscal crisis - unless Connecticut wants to risk its economic future. Read more

July 27, 2010

Lawmakers fear rail funding could drain other projects

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By Keith M. Phaneuf

As the governor's office prepares to commit $260 million for the planned New Haven-to-Springfield rail project, two key state lawmakers say they want to know how that will affect other efforts to maintain and upgrade an aging, congested transportation network.

Both say they support the rail project, for which the state is seeking $220 million in federal money. But, they said, the $260 million the state would put up will likely come at the expense of other projects. Read more

July 26, 2010

Lawmakers prodded on promise to find $50M in savings

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By Keith M. Phaneuf

Nearly one month into the new fiscal year, the legislative panel charged with identifying $50 million in cost-saving ideas still hasn't completed its work, Gov. M. Jodi Rell's administration wrote in a rebuke to the group's leaders.

The head of the Office of Policy and Management, the governor's budget agency, also reminded the Commission on Agency Outcomes that it had failed to meet its responsibility to find a much smaller savings package last fiscal year. Read more

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