Two state government reports put Connecticut’s budget deficit as high as $1.3 billion, citing increased pension and retiree healthcare costs as primary drivers.
The Fiscal Accountability Report for fiscal 2017-2020, prepared by the state Office of Policy and Management, projects a shortfall of $67.7 million in the fiscal 2017 General Fund and a nearly $1.3 billion deficit for fiscal 2018, largely due to “fixed cost growth.”
The Office of Fiscal Analysis’ report, which has the same title, mirrors those findings, with a $77.7 million 2017 General Fund shortfall and a nearly $900 million shortfall from fixed cost obligations.
Following a bond commission meeting Tuesday, Gov. Dannel P. Malloy laid the blame for the shortfalls at the feet of past administrations, which he said failed to adequately fund pensions and retirees’ healthcare costs while increasing spending.
He also said, he doesn’t anticipate major tax hikes to address the shortfall, though he did allude to possible “tax changes that could benefit the business climate.”
In an email, Sen. Len Fasano (North Haven), countered, “Our state is facing a death spiral, and we must start talking about fixing it today. Connecticut cannot even keep up with its most basic everyday expenses.”
Fasano added problems need to be acknowledged before they can be fixed.
“While Gov. Malloy blamed previous administrations, over six years his policies have created the situation we face today,” he said, citing moving $1.6 billion out of the General Fund and into bonding as well as extending the state’s pension deal.
