Governor Rell: Off-Budget Accounts Review

Finds Far Less than $220 Million Available

‘Couch Cushion’ Review Locates $188 Million – But Would Wipe Out

Historic Preservation, Stem Cell, Soldiers’, Sailors’ & Marines’ Funds

            Governor M. Jodi Rell today announced that the top Administration officials she assigned to help the Legislature’s Appropriations Committee review $1.5 billion in “off-budget” accounts to identify $220 million in potential savings for the current fiscal year have found there is far less than the target amount available – and even then, achieving significant savings would wipe out the state’s stem cell research and historic preservation accounts and the Soldiers’, Sailors’ and Marines’ Trust.

            A total of $188,434,048 in available savings was identified through the review. However, that amount includes $10 million in funding for historic preservation activities, more than $12 million designated for grants to stem cell research conducted in the state and $60.7 million in the Soldiers’, Sailors’ and Marines’ Trust.

            “Unfortunately, I am not surprised by the results of this review – my budget office said from the beginning that these ‘newly discovered funds’ were mostly depleted, restricted or needed to pay for important ongoing programs,” Governor Rell said. “The savings simply are not there. Even more troubling, this means there is a major hole in the Democrats’ deficit mitigation plan – one I am worried they will try to fill by dipping even further into the state’s Budget Reserve Fund – the ‘Rainy Day Fund.’

            “I will not allow the Legislature to drain the Rainy Day Fund or completely wipe out accounts like the Soldiers’, Sailors’ and Marines’ Trust in lieu of putting realistic spending cuts on the table,” the Governor said. “We now know the Democrats’ deficit mitigation plan includes $22.1 million in savings from a retirement plan they didn’t pass and $220 million in savings they can’t achieve. There are only 3½ months remaining in this fiscal year – it is time to get serious about cutting spending, the same way the hard-pressed families of Connecticut have.”

            During debate on the deficit mitigation plan, Senate Appropriations Co-Chair Toni Harp (D-10) would not rule out raiding the Rainy Day Fund beyond what the Governor and Legislature have already agreed upon to balance this year’s budget.

            The deficit mitigation plan passed by the General Assembly on February 25 assumed legislators could find $220 million in savings among the $1.6 billion in nonappropriated accounts that fund various state programs and specialized agencies or hold money received from lawsuits and donations to the state. At the time, Governor Rell and her budget office expressed grave doubts about the availability of the money in many of the more than 600 accounts, given that the vast majority of the accounts are either legally restricted or used for normal operating expenses.

            Nevertheless, as a gesture of good faith the Governor assigned Michael Cicchetti, Deputy Secretary of the Office of Policy and Management, and Brenda Sisco, Commissioner of the Department of Administrative Services, to work with the Appropriations Committee to review those accounts.

            The review found hundreds of the accounts would be fully expended by the end of the year, while many more contained bond funds that cannot be diverted to the General Fund. Others are proceeds from legal settlements or bequests and must be used for their intended purpose.

            The deficit mitigation bill gave the Appropriations Committee until March 25 to complete its review. However, Governor Rell said she asked Cicchetti and Sisco to speed up their work because she believes there is no time to waste.