🔒Republicans’ budget-forecasting concerns are legitimate

A simmering political controversy over differing budget projections offered by Gov. Dannel P. Malloy that show a balanced budget on one hand, and a deficit on the other, is cause for concern to Connecticut taxpayers.

The melodrama — first reported by the CT Mirror — stems from a Sept. 6 memo Malloy sent to his agency heads asking them to tighten their purse springs in anticipation of a projected $133 million deficit for the current fiscal year. Two weeks later, Malloy's budget office released its monthly public budget forecast, declaring the state's General Fund was in balance, even projecting a tiny surplus.

The discrepancy between the rosier public forecast and gloomier private one drew the ire of GOP legislative leaders, who were looking for any slab of political red meat to feast on as Election Day approaches and political power in the General Assembly hangs in the balance.

In addition to calling for a special hearing on the conflicting budget projections, Republican lawmakers also want to restore the comptroller's authority to essentially verify rather than rubber stamp the governor's budget forecasts.

We understand the budget is the single most political document within state government because it reflects the values and priorities of those who hold power. But the public needs an honest accounting of the state's financial position. Forecasting a deficit in a memo to agency heads and a balanced budget to the public doesn't seem to live up to those expectations. The fact that this occurred weeks before an election raises further eyebrows.

Republican calls for more independent budget assessments should be taken seriously and the comptroller, who is also elected, must be allowed to do his/her job and serve as a check and balance to the governor. We urge lawmakers next legislative session to give the comptroller's office the ability to modify the governor's monthly budget projections, powers that were stripped away by the legislature more than two decades ago. (It should be noted that the nonpartisan Office of Fiscal Analysis also issues revenue estimates).

The Malloy administration and other Democrats have fought back against Republicans, arguing their over-the-top rhetoric is simply election-year politics. Surely, there is some truth to that. Connecticut's weak Republican party is looking to gain control of the House and Senate and stirring a controversy a few weeks before ballots are cast could sway some of the electorate.

But there is some history here. It was only a few years ago when Gov. Dannel P. Malloy downplayed the threat of future budget deficits during his tight gubernatorial race with Republican challenger Tom Foley, only to reveal a large deficit shortly after his victory.

The Malloy administration has painted its internal projections as a sort of budget exercise that will help the governor craft his next budget proposal to be released early next year. Malloy's budget chief, who was scheduled to release another budget assessment last week, told the CT Mirror that the message to commissioners contained “extremely conservative” revenue estimates. That may be true, but taxpayers deserve that same honest assessment, and considering the state's economic performance in recent years, conservative estimates seem to be the right approach.