Gov. Dannel P. Malloy revealed Tuesday that his proposed budget won’t include an early retirement program for state employees and said he’ll make sure the state’s operating expenses don’t exceed last year’s, The Associated Press reports.
Malloy, slated to unveil his first budget on Feb. 16, said he believes past early retirement offers to workers have generally not saved the state much money and have added to the state’s increasing unfunded pension liabilities.
“I’m not a fan of early retirement, particularly in a system where pension obligations have not been met and we rank in the bottom five of all 50 states with respect to … partially funding our obligations,” the new Democratic governor said following a meeting with more than 40 state agency heads.
Malloy also said he recently concluded the new budget will fully fund Connecticut’s annual pension obligations, a practice that’s not been followed in recent years because of the state’s budget woes. Additionally, he said the budget will not borrow money to cover any operating expenses.
Tuesday’s details were among the first revealed by the governor, who’s trying to craft a two-year budget amid a fiscal crisis. The first year of the budget, which takes effect July 1, is estimated to be $3.4 billion to $3.67 billion in deficit, or about 18 percent of estimated state spending.
Without revealing any details, Malloy said general fund spending — the main state government account — will not change from the current fiscal year to the next, despite anticipated increases in labor contracts and other expenses.
“We will not spend more money on an operating basis than we spent this year,” he said, adding that “it’s fair to say” his budget plan might spend even less.
Malloy did not reveal any tax changes he plans to propose next month.
Meanwhile, the minority Republican legislative leaders on Tuesday unveiled their own ideas for balancing the budget, saying they hope Malloy will include some in his plan.
The GOP’s Common Sense plan touches on promises many of the Republicans made during the campaign to reduce state spending and borrowing and streamline state government. The ideas include a two-year, 10 percent pay cut for lawmakers, commissioners and deputy commissioners; a two-year pay freeze for state employees; a reduction in managers in state government; higher pension and health care contributions for state workers; the consolidation of 43 state agencies into 11; and new limits on state borrowing.
House Minority Leader Lawrence Cafero, R-Norwalk, said the ideas compiled by the House and Senate Republicans would save about $1.75 billion in the first year and more than $2 billion in the second year.
“Are they the answer to everything? Absolutely not. Are they tough, hard measures? They absolutely are,” Cafero said. “You’ve heard these proposals before. Unfortunately we have … kicked the can down the road. The time is now. We have a new governor, a new legislature. It is in that spirit that we offer these ideas.”
Cafero said the Republicans expect to present a full, alternative budget to Malloy’s proposal later in the legislative session.
While Cafero said Malloy has encouraged the minority Republicans to come up with suggestions for balancing the state’s budget, the governor said he hadn’t seen their package and declined to comment on the proposals.
