The 2016 Connecticut legislative session came to an end this week, with Governor Dannel Malloy announcing new budget cuts and state lawmakers canceling or deferring $1 billion in bonding.

In signing the deficit mitigation package approved in last month's special legislative session, the Governor also used his line-item veto power to cut another $22.5 million from the 2017 fiscal year budget.

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State lawmakers will be dealing with billion dollar-plus budget deficits after the November elections.

The Governor said the cuts were necessary after the state House did not act Thursday on his criminal justice reform package, which included $15 million in projected savings.

In addition, passage last month of a new healthcare mandate added costs that were not reflected in the revised FY 2017 budget, forcing cuts to federally qualified health centers.

Acting during Thursday's special session, the Connecticut state House unanimously approved a bond package that passed the Senate last month.

The bond package cancels or delays approximately $1 billion in financing for an array of projects and programs, while authorizing $382 million in new borrowing for municipal school construction.

The cancellations affect capital projects at public colleges and universities, school districts, economic development programs, social services, housing, recreation and the environment, transportation, state facilities, and information technology.

House Republicans attempted to amend the bonding measure, introducing a requirement that the legislature's Finance Committee review any assistance the Executive Branch plans through the First Five program.

The amendment failed 84-53, largely along party lines.


For more information about state spending, contact CBIA’s Louise DiCocco (203.589.6515) | @LouiseDiCocco

For more information about state taxes, contact CBIA’s Bonnie Stewart (860.944.8788) | @CBIAbonnie