Gov. Dannel Malloy released a list of $135 million in additional cuts across Connecticut government, after already having reached a $1.6 billion labor agreement that closed the state’s budget gap for fiscal 2012.
The additional amount is part of $700 million in labor-management savings made to the two-year, $40.1 billion spending plan.
Malloy said Tuesday the savings reflect ideas that evolved during negotiations with the State Employees Bargaining Agent Coalition, which represents 15 unions. SEBAC eventually ratified the agreement.
Meanwhile, Comptroller Kevin Lembo reported that the pre-audited general fund surplus for the end of fiscal 2011 is $236.9 million, though that would have been a deficit of more than $1 billion without temporary financial fixes.
In a letter to Malloy, Lembo said the state will use the surplus to fund $14.5 million that it must pay toward future retiree health care, and to begin paying $915.8 million in 2009 economic recovery notes.
Connecticut’s general obligation bonds are rated AA by Fitch Ratings and Standard & Poor’s, and Aa2 by Moody’s Investors Service.
