Senate Leadership
April 1, 2009
As Legislature Works on Budget, Discovers Millions in Savings Proposed by Governor Rell Don’t Hold-Up
In order to comply with federal stimulus act Gov. Rell must abandon $100 million in additional revenue
Hartford: Senate President Donald E. Williams, Jr. (D-Brooklyn) says the legislature’s Appropriations Committee and Finance, Revenue, and Bonding Committee are working to present a balanced budget this week and will do it without relying on ‘phantom savings and revenues’ that actually disqualify Connecticut from receiving federal stimulus dollars.
In her proposed budget, Gov. Rell relies on at least $100 million in savings over two years from transferring money in energy related funds. But, according to stipulations of the ARRA, any state that cuts energy funds is ineligible to receive federal energy dollars. Connecticut is expected to receive at least $120 million from ARRA for energy related programs, of which almost $40 million is directly tied to the state’s energy funds.
In order to qualify for these funds, the state must commit that the money will supplement dollars for existing energy programs, not replace them. Gov. Rell agreed with the conditions in this letter sent to the U.S. Secretary of Energy on March 23, 2009, certifying that the state will adhere to the stipulations outlined in the ARRA.
“The governor’s letter makes it clear that she has abandoned her plan to tap Connecticut’s energy funds for as much as $100 million in savings,” said Senator Williams. “While I believe this is the right decision, I am concerned that the governor has not acknowledged the implications this has for her proposed budget and has not suggested any alternative savings.”
The Appropriations Committee, and Finance, Revenue, and Bonding Committee have no choice but to omit the $100 million in savings from their plans which will be voted on Thursday. Other savings that Gov. Rell included in her budget but has since abandoned:
- $24 million in Medicaid cuts that would cost Connecticut $1 billion in federal funds.
- $10 million from the expansion of liquor sales in casinos to 24-hours.
“We must make deep cuts in spending in order to help balance the budget,” said Senator Williams. “The job of the committees is made that much harder when it turns out that more than $130 million in savings from the governor’s budget doesn’t hold-up. Together we must search for alternative savings and work toward agreement on a real budget.”
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Senator Williams’ Derek Slap |
Listing of Leadership’s recent press releases. |
Senator Looney’s Derek Slap |
