Connecticut Lawmakers Pass Deficit-Cutting Bill

The Connecticut General Assembly passed a deficit mitigation measure yesterday, though it was short of what Gov. M. Jodi Rell had asked for.

"I'm disappointed that the Democrats' deficit plan falls short of what we need to erase the entire $356 million deficit," Rell said in a statement. "I'm also concerned that some of the cuts they did make represent more wishful thinking than real savings."

Larry Perosino, spokesman for the Democratic majority in the House, said they had passed about 90% of what Rell had asked for and that roughly $100 million of Rell's deficit reduction plan would come from funds expected to be unused by state agencies at the end of the fiscal year on June 30.

The bill results in a net deficit reduction of $131.2 million from a series of measures. They include transferring $61.9 million from various accounts and funds into the general fund, and a new law that would require beverage distributors to pay the state for unclaimed deposits on bottle and cans, which is expected to generate $13.8 million in the remainder of the fiscal year and $24.4 million in fiscal 2010.

Rell said she will sign the measure into law. New revenue projections are expected next week to show that state tax revenue has further declined. Rell spokesman Adam Liegeot said that the governor is crafting another deficit mitigation plan. Rell will present a two-year budget proposal for fiscal 2010 and 2011 on Feb. 4.

In Rhode Island, Gov. Donald Carcieri told state legislators that his budget proposal for fiscal 2010 would be late. The proposal was due yesterday, according to statute. The General Assembly is currently considering deficit reduction proposals totaling $357.4 million made by Carcieri last week, including an overhaul of the state's Medicaid system.

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