Deep cuts to hospitals and changes in Medicaid eligibility are among the reductions Connecticut Gov. Dannel P. Malloy is proposing in his new two-year budget, set to be presented on Wednesday, The Associated Press reports.
A budget document obtained Tuesday by The AP shows the Democratic governor’s plan cuts $1.8 billion in spending from the current services budget, which is the amount of spending required by law.
Malloy, who is scheduled to address a joint session of the General Assembly at noon, has been criticized by legislative Republicans for spending initiatives he has recently unveiled, especially those relying on borrowing. He’s also likely to receive criticism for increasing spending in the general fund, the state’s main account, by roughly 5 percent in the first year and 3.7 percent in the second.
Under Malloy’s proposal, the general fund would be about $20 billion in the first year and $20.8 billion in the second, according to the budget document.
Malloy’s budget director, Benjamin Barnes, said much of the spending increase stems from state employee retirement health care and pension costs, expanding Medicaid eligibility under the federal health care reform law and other higher Medicaid costs. To help offset costs, besides the spending cuts, Malloy’s budget extends various taxes and tax credits set to expire.
Chief of Staff Mark Ojakian defended the package, which he called a framework for discussions with lawmakers over the coming weeks.
