Governor Rell Announces

New Cost-Cutting Measures

Directive Will Result in Sharp Reduction in State Agency ‘P-Cards’

            Governor M. Jodi Rell today announced additional measures to reduce spending and help control the current year state budget deficit, including a directive to all state agency heads to sharply cut back on the number of state Purchasing Cards (“P-Cards”) and credit cards.

            Because the economy has continued to deteriorate, Connecticut faces a lingering budget deficit for the fiscal year that ends June 30 despite numerous measures by Governor Rell to reduce state spending. Since the spring of 2008 the Governor has imposed five rounds of state agency budget cuts, ordered a hiring freeze and a ban on out-of-state travel and made major reductions in state contracting. Governor Rell has also sent the General Assembly four proposals for deficit mitigation.

            In a memorandum sent late Monday afternoon, the Governor directed state agency chiefs to review all P-Card and credit card assignments within their respective departments and to immediately cancel any card that has not been used within the last six months. In addition, Governor Rell told the agency heads to suspend any cards “not deemed absolutely and immediately essential to accomplish the mission of your agency.”

            “Every dollar we save now is a dollar trimmed from the deficit,” Governor Rell said. “I will continue to do everything in my power to keep state spending under the tightest possible controls. I expect commissioners and state agencies to be acutely aware that the money they are spending comes from taxpayers – taxpayers who are themselves cutting back and going without.”

            Also in her memo to agency heads, the Governor directed agencies to ensure proper controls are in place to maintain the freeze on agency spending she has ordered.

            “Past practice has been to ‘spend down’ accounts for supplies, equipment and other expenses before the fiscal year ends,” the Governor said. “That cannot happen as we enter the final weeks of our budget year. Every penny that is in those accounts now and is not essential to agency operations will be needed to reduce the budget deficit. My office and the Department of Administrative Services will be monitoring these accounts very carefully.”