Latest News

CT Manufacturing Not Dead

In a state tormented by negative economic news the manufacturing sector is sounding a bright note.

The number of manufacturing jobs has been rising and demand for those jobs is increasing as older workers retire. However, even this good news includes challenging trends. Lower starting salaries are keeping income tax revenues down.

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Optimistic and Pessimistic

A new survey from InformCT, and administered by the Connecticut Economic Resource Center, Inc., says most Connecticut residents are feeling better about their own personal financial situations, but are pessimistic about the condition and future of Connecticut state finances.

As a result, many are curtailing their spending.

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Budget Analysis

CT News Junkie published this analysis of the just completed legislative session, the budget debate and a look at what's next.

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Rainy Day Fund in Play

CT News Junkie is reporting that it is likely part of Connecticut's budget reserve fund may be used to balance the current year's projected budget deficit.

Office of Policy and Management Secretary Ben Barnes says there is not enough time left in the current fiscal year to fill a deficit of approximately $250 million without tapping into the reserve account.

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HBJ: Departures Show Job Not Done

The Hartford Business Journal says this year's list of retiring state legislators shows Connecticut still faces a significant fiscal crisis and the departures may be a sign some do not want to be around when the hard decisions are made.

It is true that even as lawmakers celebrated the conclusion of a budget deal two weeks ago, almost all acknowledged difficult challenges will face the new legislature after the fall elections.

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Time to Prioritize

by Scott Bates

Governor Dannel Malloy and legislators deserve credit for addressing the state’s budget deficit during this year’s legislative session. As important as the work that was accomplished; is the way in which it was done.

At a time when residents and business leaders are demanding greater accountability and value from state government, leaders balanced the budget primarily by cutting spending and without increasing taxes. The tone was set early by the governor and lawmakers did their best to follow his lead. But as everyone knows, there is still lots of work to do.

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Just Starting

Debate continues at the state capitol over the tentative budget agreement to close the existing $1 billion deficit. The Office of Fiscal Analysis now says the plan will significantly reduce future projected deficits, but not eliminate them.

This analysis confirms what many have been saying for months about the state of Connecticut's finances. While lawmakers may be close to solving the current budget problem a major re-tooling of state spending will be necessary when the new legislature is sworn in next year.

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Sign of Shift?

The early decision by Governor Malloy and some legislative leaders to insist on a no new taxes approach to the current projected budget deficit is being seen by some as a sign a major policy shift may be possible.

The decision by General Electric, and others in the business community, at the end of last year's legislative session to speak out in protest, is being credited with changing the way lawmakers think about improving the state's business climate. The hope is this change in thinking leads to a more predictable pattern of policy-making.

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Vote Expected

A vote is scheduled for May 12 on the latest state budget agreement.

The deal includes no new taxes, but the one week delay in a final vote is giving time to critics seeking more spending.

Governor Malloy has said any new spending will kill the agreement in his mind. All agree this budget deal sets the table for a closer look at the need for major reforms in the next legislative session. With revenues declining, there is even the possibility further adjustments will be necessary before the end of the year.

Budget Update

Time ran out Wednesday in this year's legislative session and the decision was made to postpone a vote on the proposed budget fix until a special session next week.

Governor Malloy has warned lawmakers against attempting to re-open negotiations on the budget in the intervening time. Here is a round-up of coverage.

Special Session Next Week - Hartford Courant

Overtime - CT Mirror

Spate of Retirements - CT Mirror

Session Limps to End - CT News Junkie

Malloy Warns Lawmakers - Journal Inquirer via Hartford Business Journal

Fast Moving Final Day

It appears legislative Democrats and Governor Malloy have agreed on a budget plan that closes a $1 billion deficit without raising taxes, but it is unclear whether it can be passed on the final day of the legislative session and whether it has any Republican support.

Here is some of the latest coverage that is changing hour by hour:

Budget Deal - CT Mirror

Deep Cuts, No Taxes - Hartford Courant

Dems Get Budget Deal - CT News Junkie

Changing Dynamics

by Pete Gioia

For years we’ve said we need to turn the tide on state spending. To create an atmosphere for investment that kick starts state revenues and grows the economic pie, we’ve said change is necessary.

An unsustainable cycle of deficits and tax increases, we’ve warned, will mean hitting a wall where job creation stalls and the revenue well runs dry. We’ve hit that wall.

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