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Malloy holds back state funds to cities and towns

HARTFORD — Gov. Dannel P. Malloy is holding back funds to state agencies and municipalities to cover an estimated $881.6 million gap built into the newly passed, two-year $41.3 billion budget.

The Democrat’s fiscal office announced Friday that the bulk of the $881.6 million — $700 million — will come from expected savings from the state employee labor concession agreement.

But Malloy’s plan reduces state aid to cities and towns by $91 million, a move Democratic House Speaker Joe Aresimowicz is calling “misguided.” He says school funding “is a clear legislative priority” of the new, bipartisan state budget.

Malloy’s budget secretary Ben Barnes says “adjustments” are needed now to achieve savings, and these cuts let municipalities and agencies know how much funding to expect for the rest of the fiscal year.