The General Assembly met in special session yesterday to consider budget cuts and revenue enhancements to meet a growing state budget deficit in this fiscal year. They passed measures which will trim about $71 million from the $700 million deficit. However, the problems facing the Governor and General Assembly this year pale in comparison to the $6 billion deficit forecast for the next two fiscal years which start July 1, 2009. The last time the state faced such a problem, Governor Weicker and the General Assembly passed a state income tax to fill the gap. The options this time around are fewer: raise taxes, cut state employees, cut funds for municipalities, reduce state programs.
While President-Elect Obama has promised a big stimulus package in January, it won't be enough to forestall difficult decisions. Members of the ACEC/CT Government Affairs Committee, our lobbyist Dave O'Leary and I met with Robert Genuario, Secretary of the Office of Policy and Management last week. One of the topics of discussion was that the state should be ready with a variety of transportation, clean water and other infrastructure projects to take advantage of any stimulus package. We also discussed the deficit in the state's Special Transportation Fund. With gas under $2 per gallon, this may be the opportunity to raise the per gallon fuel tax to revitalize the fund. We had the same message with Senator DeFronzo, Co-Chair of the General Assembly's Transportation Committee.