State lawmakers face a critical budget votes May 12 and 13 after the 2016 General Assembly adjourned without taking action on a package to close a near $1 billion deficit next fiscal year.

While a tentative deal was reached between Governor Malloy and Democratic legislative leadership in the waning days of the session, the budget was not brought to a vote in either the House or Senate.

Budget-Gaps_050216Legislative leaders later said the delay would allow lawmakers from both parties time to review the budget and allow time for debate.

The package would close a projected $933 million deficit for the next fiscal year, with the state facing more budgetary problems down the road.

"This budget begins the fiscal discipline needed to improve services, reduce costs, and set Connecticut on a path to grow our economy and keep businesses, jobs, and families here," said CBIA president and CEO Joe Brennan.

"With no new taxes, major spending cuts, and savings into the future, the budget seems to contain parts that can fight future deficits.

“We urge all Connecticut state lawmakers to vote yes on the proposed no tax hike budget.

"The alternative—raising taxes again on individuals and businesses—only makes the situation worse and will lead to further revenue declines and economic uncertainty."

We urge all state lawmakers to vote yes on the proposed no tax hike budget.
— CBIA president and CEO Joe Brennan
The 2017 budget plan will not raise taxes, does not dip into the state’s Rainy Day Fund, and contains $830 million in spending reductions.

The proposal does rely on some temporary revenues and other one-time solutions.

The non-partisan Office of Fiscal Analysis projects much larger deficits in the next budget cycle: a more than $2 billion shortfall for the 2017-18 fiscal year.

Republicans continued to express concerns that the budget doesn’t contain enough structural changes to stabilize Connecticut’s finances and future budgets.

ACT-NOW_Tax-HikeThe plan does not include many of the structural budgetary changes advocated by the Republicans, including requiring legislative votes on all union contracts, reform and reduction of overtime, and substantially reducing state borrowing.

The Connecticut State Senate scheduled a special session for Thursday, May 12.

The State House has plans for a special session on May 13.

For more information about state spending or taxes, contact CBIA’s Louise DiCocco (203.589.6515) | @LouiseDiCocco; or Bonnie Stewart (860.944.8788) | @CBIAbonnie