State Budgets: Connecticut Considering Options for Large Shortfall January 2, 2009 Joseph Bishop-Henchman Joseph Bishop-Henchman In November, Connecticut legislators held a special session and approved $71.8 million in cuts (plus a tax amnesty program expected to generate $40 million, but lawmakers rejected a move to seize $40 million in unclaimed deposits on bottles and cans). Since then, the shortfall in the current biennium’s $18 billion budget has reopened and now stands somewhere between $288 million and $320 million. The 2009-11 biennial budget (unveiled in February) reportedly has a staggering $6 billion shortfall ($2.6 billion the first year and $3.3 billion for the second year). Gov. M. Jodi Rell (R) has requested that all state departments cut their 2009-11 budgets by 10% but has ruled out tax increases and layoffs. She has also called a lame-duck special session for January 2 to address the current year’s shortfall. Connecticut has a $1.4 billion rainy day fund that remains untapped. More on Connecticut here. Stay informed on the tax policies impacting you. Subscribe to get insights from our trusted experts delivered straight to your inbox. Subscribe Share Tweet Share Email Topics Connecticut Tags State Tax and Spending Policy