State Budgets: Connecticut Considering Options for Large Shortfall
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.
Was this page helpful to you?
Thank You!
The Tax Foundation works hard to provide insightful tax policy analysis. Our work depends on support from members of the public like you. Would you consider contributing to our work?
Contribute to the Tax FoundationShare This Article!
Let us know how we can better serve you!
We work hard to make our analysis as useful as possible. Would you consider telling us more about how we can do better?
Give Us Feedback