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Malloy Calls For Budget Talks As State Faces $120 Million Shortfall

FAIRFIELD COUNTY, Conn. – Gov. Dannel P. Malloy said that the state is looking at a $120 million deficit in revenues, and is calling on bipartisan budget talks as more cuts will need to be made.

Gov. Dannel Malloy said that Connecticut is facing a $120 million budget deficit, and is calling on leaders to hold bipartisan talks on the state's budget.

Gov. Dannel Malloy said that Connecticut is facing a $120 million budget deficit, and is calling on leaders to hold bipartisan talks on the state's budget.

Photo Credit: File

Malloy said Monday morning that the Office of Policy and Management is projecting the shortfall in revenues even after the $103 million in budget cuts he ordered in September.

“The effects of the downturn on Wall Street and the fact that personal incomes are not rising at the level we have predicted necessitates this action,” Malloy said.

Next week Malloy will lay out his priorities for addressing the budget deficit in both the short term and the long term.

“I believe we have to adjust expectations and realize we have a post-recession economic reality. This is something I have said repeatedly and few have been willing to accept and embrace what is necessary for our budget for the short term and the long term,” Malloy said.

Malloy said he wants leaders of both parties to come together for bipartisan talks on Connecticut’s spending, which could lead to a special session on the budget later this year.

“Le’s use the reality of this moment to have a real public debate on how we can improve our budget, grow our economy and make our state’s business climate one of the best and most competitive in the region.”

On Sept. 18 Malloy ordered $103 million in budget cuts in an effort to balance the state’s $20 billion budget, also citing volatility on Wall Street as a reason for revenue shortfalls. The rescissions included large cuts to Medicaid reimbursements to hospitals.

Malloy said Monday that state leaders and citizens must take part in discussions on the state’s financial future.

“We cannot spend money that we don’t have, and that means we have to make hard choices,” Malloy said. “We can’t be driven by every immediate interest group that employs a lobbyist in Hartford. We must be driven by the public interest and the long-term interest of every citizen in the state of Connecticut.”

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