A Budget in Trouble

It is becoming clear the recently approved state budget is leaking less than a month after it was approved.

The spreading red ink is proof to some that the spending plan put together over a period of ten months does not present long-term solutions to the state's fiscal challenges.


Special Session Already?

Less than a month after the legislature ended a ten month budget stalemate, Governor Malloy says lawmakers need to come back into special session to deal with a projected deficit of more than $200 million.


Santy: Not Out of Woods

We have a state budget! But we’re not nearly out of the woods yet. A new round of projected deficits is just over the horizon, and if prompt and substantial action isn’t taken, we’ll go through this again, and again.


Low Expectations

According to the Connecticut Economic Resource Center, state residents increasingly believe that overall business conditions in Connecticut are worsening, and an increasing percentage – now nearly half - expect that conditions will be about the same six months from now. More people believe that business conditions will continue to worsen than are of the view that they will improve.


Good and Bad from Moody's

Moody's says having a state budget in place is good for Connecticut, but the details are bad for the University of Connecticut.


Continued Budget Analysis

The chief economist for the Connecticut Business and Industry Association says the recently passed, bipartisan budget, is a step in the right direction and serves as a good sign for the future.

Pete Gioia, is also a member of the CT21 board.


One Analysis

One week after Connecticut's longest budget crisis came to an end, it is right to ask lawmakers and candidates for office what's next? How do we avoid such a stalemate in the future by taking a long-term approach to state finances and economic growth.


Watching for What's Next

One week after the passage of a new two year budget, state officials and budget analysts are not sure whether the new spending and tax plan will actually work, in the short-term or the long-term.

Big Deficits? - CT Mirror

Too Soon to Tell - CT News Junkie

Now What?

A ten month budget stand off is over and Governor Malloy has reluctantly signed a new budget into law, but the question remains what are the long-term implications of the new spending plan?

In three months, if not sooner, lawmakers will be back at the capitol to make further adjustments to the budget. 2018 is an election year making it more difficult to reach agreement if there are any issues in dispute, or if the budget falls into deficit.

Meanwhile, the Connecticut business community is closely considering the details of the new budget to see if it provides policy clarity for the future.   


Early Tuesday morning legislative Democrats and Republicans announced they had a budget deal that might be voted on later this week.


Poll On CT Attitudes

A new poll from Sacred Heart University shows people are worried about the state of Connecticut government, concerned about the future and willing to consider various new forms of taxes and revenue to get things on the right track.


Call for Regionalism

Greg Bordonaro, the editor of the influential Hartford Business Journal, says this year's long-running state budget drama shows regionalism in local government is an issue that can no longer be ignored. He asks readers to imagine Hartford, East Hartford and West Hartford as one municipality for starters.


Wrong Signal

Governor Malloy says the on-going state budget stalemate - now passing the 100 day mark - is hurting the state's economy. Malloy says business leaders are delaying decisions about expanding, or moving to Connecticut because they don't know what's next.


New Deadline

The governor and legislature are now operating under a new self-imposed deadline for a two-year budget plan. October 13th is now seen as the last moment for all sides to come to agreement on a budget that has eluded them since June.


Key Week on Budget

This may be a key week in the state budget standoff as important municipal aid is cut or held back.

The pressure this development will place on city and town budgets may force lawmakers to find a compromise at the state level.


School Funding

The Connecticut Supreme Court has listened to arguments in a school funding case that has the potential to put even more pressure on the state budget.


Kicking the Can?

More dire budget news this week.

Governor Malloy has been quoted as saying he does not think a budget resolution between Democrats and Republicans can be reached by October 1. If true, missing the October deadline could put the state and its cities and towns in further jeopardy.

On top of that, the ideas that have been put forward so far appear to fall short, according to Keith Phaneuf of CTMirror.org. Phaneuf, considered an expert on the state budget, writes that plans put forward by both parties would still leave large budget shortfalls at the end of the current two-year budget cycle.


Bi-partisan Talks?

Governor Malloy joined the call Monday for bi-partisan budget talks while promising to veto the budget approved by lawmakers over the weekend.

So far, there have been no new negotiations.


Budget Situation

Three months into the new fiscal year the legislature finally voted on and passed a budget Friday, but it is believed Governor Malloy plans to veto the spending plan. Democrats and Republicans are already working on their next budget in anticipation of the veto.

The budget that passed Friday night was described as a "Republican" budget, but it passed both Houses with a handful of Democratic votes.

What may be more important is the damage the continued delay does to cities and towns waiting for budget clarity, the city of Hartford which is essentially waiting for a state bailout to avoid filing for bankruptcy, and the state's national reputation as a stable place to do business.

Fair to Ask

With news from Alexion and a stalled budget process at the state capitol, it is fair to ask, what is Connecticut doing wrong? That's the question Governing magazine asked in its latest issue. The resulting article is being widely circulated in Connecticut's leadership community.

At the same time, it is important to recognize that there are ways forward and there are ideas that could put the state on the right track if implemented. CT21 has been providing those ideas and that pathway since its inception and many of our recommendations are highly relevant in the current policy debate.


Alexion Moving Out

Reports indicate Alexion has decided to move its headquarters from New Haven to Boston. It is the latest high profile move out of Connecticut by a major company as the legislature and governor continue to battle over the state budget. The correlation between fiscal chaos and the Alexion decision is unknown, but other private sector leaders have cited the effect of poor long-term planning by state government on the business climate.


A Vehicle for Tolls

Perhaps tucked into the proposed budget scheduled to be voted on later this week is a provision to create a new quasi-public state agency responsible for raising revenue for transportation projects. It is possible this new authority would be the first step toward implementation of electronic tolls in Connecticut.


Budget Deal?

Democrats say they are getting close to a budget deal as a self-imposed Thursday deadline approaches.

After a weekend of meetings, Democratic leaders now say they are leaning away from an across the board increase in the sales tax but still have plans to expand the base of items subject to the tax.


Job Recovery

Economist Don Klepper-Smith says Connecticut is on track to recover all the jobs lost following the 2008-09 recession, but not until 2019.