State Budget Deficit

The slowing economy is impacting Connecticut state programs. With only days left in the regular session of the General Assembly, Governor Rell and legislative leaders are facing a state budget which started the year with a healthy surplus but has deteriorated into a small but significant deficit.

Republican legislators have suggested an early retirement program for state employees but the Governor is reluctant to go that route. Past early retirements at ConnDOT and other agencies have left the state with fewer and less experienced managers and resulted in problems.

Governor Rell may be forced to veto "three strikes" legislation she previously called for because of the price tag.

Unfortunately, the state's fiscal woes may increase chances for passage of a state false claims act. The fiscal note shows a net income to the state. The legislation died in the Judiciary Committee but has been raised again as an amendment to another bill.

On a brighter note, the fiscal crisis has quashed talk of a state fuel tax holiday which would have cut off funding for important transportation project.