State Representative DebraLee Hovey (R-112)) expressed bitter disappointment today as Gov. Malloy and Democratic lawmakers resorted to budgetary gimmicks late last night to balance the state budget by raiding transportation funds, borrowing for operating expenses and cutting programs and services, six months after they rammed through the largest tax increase in state history.
“So far it doesn’t appear that Governor Malloy has done a very good job at delivering what he promised,” said Rep. Hovey. “We were told we would end the fiscal year in the black. However we are now facing a $300 million deficit. We were told that he would never borrow to cover operating expenses. However he has moved to borrow $222 million from scheduled debt payments to cover state operating expenses. We were also told that implementing Generally Accepted Accounting Principles (GAAP) was a priortity of this administration, yet it is noticeably absent from this budget document.”
Hovey said that the Democratic budget does not account for newly revised revenue estimates which show the state budget deficit is now at $285 million, thereby building into future budgets even greater deficits. He noted that het revenue projections are now at least $300 million less than when the budget was adopted.
Malloy also intends to reduce payments to the Teachers’ Retirement Health Care fund by paying for it out of the Teachers’ Retirement Fund. This will increase the unfunded liability within the teachers’ pension funds.
Additionally, the budget would swipe $70 million from the Special Transportation Fund by taking $30 million from Town Road Aid, delaying bond sales and reducing the STF balance.