Malloy Offers Compromise On State Budget

HARTFORD, CT — Gov. Dannel Malloy has eased cuts to municipal aid in his latest budget proposal. The move comes as the state legislature remains in a deadlock over how best to solve the state budget.

“I have a long history of developing and negotiating budgets,” he said. “I understand that a budget is a reflection of multiple perspectives and priorities – it is the result of a lot of effort to find common ground and requires compromise on all sides.”

The newest proposal would increase various municipal aid by $136.8 million in fiscal year 2018 and $89 million in fiscal year 2019 compared to his May 15 budget proposal.

It would also be an increase of nearly $900 million from his executive order plan, which as it stands cuts aid drastically to the majority of Connecticut communities. Some of those cuts will go into effect in October if no state budget is passed.

Many local leaders decried Malloy’s municipal aid proposal, which would have led to large property tax increases and/or spending cuts.

Malloy has been running state finances by executive order since July 1 after the state legislature failed to pass a budget. The estimated biennial budget deficit is about $3.5 billion.

Democrats hold a small majority in the House and are tied with Republicans in the Senate. Lt. Gov Nancy Wyman, a Democrat serves as the tie breaking vote in the Senate.

'Malloy’s budget would also only call for cities and towns to contribute to teacher pensions for active employees and would phase in over two years. His original proposal called for cities and towns to pay one-third of the total actuarial cost, something that found little support at the local level. It would reduce the cost of to municipalities by more than $315 million in fiscal year 2018 and $231 million in fiscal year 2019 compared to his previous plan.

Malloy said his compromise represents a bottom line on several key reforms he believes are needed for the future of the state.

Full details are expected Friday.

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