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Malloy orders aggressive budget cuts, asks legislature to approve using rainy day fund

HARTFORD -- Gov. Dan Malloy Tuesday outlined what he termed aggressive steps to cut the budget for state agencies and branches for the current fiscal year in order to fix the deficit.

"Given recent revenue projections showing the state facing a potential shortfalls, I find it necessary to take aggressive steps to ensure the state's budget stays in balance," said Malloy.

The rescissions and transfers amount to $391.2 million. They are spread across the state's executive branch including state agencies, legislative and judicial branches. Malloy can only ask the judicial and legislative branches to make the cuts, as they have the authority to make their own cuts. Malloy has the authority to make cuts in state agencies on his own.

Malloy ordered $33 million in cuts immediately. Another $22 million in cuts requires the state legislature to approve the actions. The legislators also must approve transfers from state accounts including $236 million from the rainy day fund.

The current fiscal year is now projected to end June 30 with an approximate $389.8 million shortfall while the following two fiscal years are now predicted to have deficits of $2.3 billion and $2.7 billion respectively.

Some of the larger line item cuts called for were from UConn, for cuts to operating expenses by over $2 million; the Department of Mental Health and Addictive Services for Young Adult Services, amounting to $2 million; the Department of Developmental Services, with a cut to Employment Opportunities and Day Services for $1 million, and the Department of Housing for $1 million in Housing/Homeless Services cuts.

More information can be found here.

In an interview, Wednesday, Malloy said this plan does not include layoffs but they could end up becoming part of the next budget, which starts July 1.

"Notices are starting," he said. "We've been telling people for weeks that we're doing the work and we have to start that, I hope that they ultimately aren't necessary."

Malloy said whether or not there will be layoffs will depend on progress in discussions with union leaders.