Gov. Dannel Malloy’s efforts to plug the state’s budget deficit with state union concessions fell short $400 million.
In an announcement Friday afternoon, Malloy said the state employee unions agreed to $1.6 billion in cuts over the two-year budget. Malloy’s initial budget called for $2 billion in union concessions.
To fill the remaining $400 million budget gap, Malloy said his administation will make additional spending cuts and use existing revenues.
The failure to achieve $2 billion in union concessions will not result in addtional taxes, Malloy said.
The state budget passed in early May already raised taxes by $1.6 billion, the most expensive tax package in Connecticut history.
Malloy refused to release details of the union concessions, saying the union negotiators want to tell their members first. In general, the concessions come from wages, healthcare and pension benefits.
The concessions do not include layoffs, furlough days or reductions in the 40-hour workweek.
