Governor Rell Signs Deficit Mitigation Plan

and Warns of Deeper Cuts Ahead

            Governor M. Jodi Rell today announced she has signed the two deficit mitigation bills approved by the General Assembly in Special Session Monday night, calling the legislation a “step in the right direction that will help bring state government in line with fiscal reality.”

 “These measures I proposed and lawmakers approved really amount to the same kind of common sense decisions that Connecticut families make each and every day to control their finances. They should expect no less from their leaders,” Governor Rell said. “My office, the General Assembly and state agencies must work together and sharply focus our priorities on one overriding issue – keeping Connecticut fiscally sound while serving the best interest of our citizens.”

The Governor offered her deficit mitigation plan on October 21 when the budget deficit for the current fiscal year was projected at just over $300 million. She used her executive power to trim nearly $180 million with rescissions and identified approximately $157 million in revenue owed to the state from a Medicaid settlement.

The Governor’s plan also included approximately $40 million in savings for municipalities with a tax amnesty proposal, which the General Assembly approved. But lawmakers rejected the Governor’s proposal to recoup nearly $14 million in unclaimed bottle and can deposits.

The General Assembly approved and the Governor signed Senate Bill 1200 that provides relief to municipalities and House Bill 7601 that made approximately $70 million in rescissions to various agencies and services. The state is facing a projected shortfall of about $6 billion in fiscal years 2010 and 2011.

“On Thursday, Connecticut families will count their blessings as they sit down to a Thanksgiving feast. Around that same table is where they may have made some difficult choices while poring over bills,” Governor Rell said. “I want to assure everyone that their Governor and their government have their best interests at heart and we will do everything we can to soften these difficult times.