HARTFORD – Governor Dannel Malloy’s State of the State address on Wednesday placed a large focus on Connecticut’s looming $1.5 billion budget deficit.
Malloy said Connecticut needs to continue reducing the size of state government while also overhauling how it distributes billions of dollars in state aid to cities and towns. That aid is the single largest expense for the state at $5.1 billion. $4.1 billion of that is educational funding.
The Democrat said he will unveil a two-year budget plan next month that includes a "more equitable system for providing town aid." He says it will be based on the local property tax burden, student need and current student enrollment.
Mayor Neil O’Leary of Waterbury hopes that system will help cities like his that need the aid the most.
“Today's a good day for everyone that is an urban leader understanding the inequities in the education system is just horrific,” said O’Leary after Malloy’s speech.
Malloy also specifically mentioned the need to make labor more affordable and said his budget plan will likely include state employee concessions.
The leader of Connecticut's largest labor organization says she's disappointed Malloy is already talking about state employee labor concessions as a way to balance the state budget.
Lori Pelletier, the Connecticut AFL-CIO president, says "there is not an appetite" among state workers for additional givebacks. They last agreed to a concession package in 2011, which included changes to health and retirement benefits.
Jennifer Schneider, Communications Director for SEIU 1199, also mentioned the concessions made in 2011 and said state workers alone can’t balance this budget.
“We were part of the solution in 2011 and we were very happy to be part of the solution. It was quite a sacrifice for our members, but we wound up helping the state save over $20 billion over 20 years,” said Schneider. “We're welcoming those conversations again. We just want to make sure it's part of a larger conversation, in which other items are being addressed as well.
Schneider said a third of the state’s budget deficit is spent on low-wage workers accessing public assistance.
She said, “If we were to raise the minimum wage or hold corporations like Walmart or McDonalds responsible and more accountable then that would help address the problem as well.”