Gov. Rell to Legislative Leaders: Layoffs, Higher Ed

Cuts Inevitable Unless Other Savings Adopted

            Governor M. Jodi Rell today urged legislative leaders to adopt spending cuts outlined in her deficit mitigation plan as a way of avoiding state employee layoffs and cuts in higher education that will be necessary under the sharply increased rescissions included in the General Assembly’s mitigation plan.

            Governor Rell’s deficit mitigation plan proposed $6.3 million in additional agency spending reductions – the fourth such round of cuts she has made. However, the plan adopted by the Legislature requires the Governor to make $20 million in unspecified agency budget cuts, an increase of $13.7 million over her proposal. At the same time, lawmakers ignored more than $46 million in other savings that the Governor proposed.

            “I have cut agency spending over and over – and I have done everything in my power to avoid state employee layoffs in this extraordinarily difficult economic climate,” Governor Rell said. “In every agency, I have cut the two biggest line items – Personal Services and Other Expenses – to the bone. The only exception has been higher education, which has seen just one round of cuts because I did not want students and parents to endure tuition increases in the midst of an economic downturn.

            “At this point in the budget – and at this point in the fiscal year – any meaningful cuts in Personal Services will now necessarily result in layoffs, while further reductions in Other Expenses will result in cuts to higher education,” the Governor said. “There is simply no way around it. The Legislature needs to understand that this is the result of the choices they have made – and that other choices are available.”

            Governor Rell’s deficit mitigation plan proposed a wide range of measures that were not adopted by the General Assembly. She proposed achieving $42.4 million in savings by moving forward changes planned in Fiscal Years 2010 and 2011; of that amount, the Legislature adopted $18.1 million. She also proposed $7.6 million in deappropriations from Fiscal 2007; of that amount, the Legislature adopted $3.5 million. And the Governor proposed $30.1 million in other savings; of that amount, the Legislature adopted $12.2 million.

            In all, the General Assembly left $46.3 million in deficit mitigation measures proposed by the Governor “on the table.”

            “Surely any combination of those spending cuts would be preferable to layoffs, tuition increases or cutbacks in higher education – especially now, as our state works harder than ever to not only get through these difficult economic times but to position ourselves for success when the economy picks up again,” Governor Rell said in her letter.

            In the letter, the Governor urged the leaders to revisit her plan and adopt some combination of her proposals in lieu of the $20 million in unspecified rescissions on the next regularly scheduled session day.