The legislature’s nonpartisan fiscal analysts projected the state will face $4.3 billion in budget deficits over the next four years. The Office of Fiscal Analysis estimates that the state is facing a $254.4 million budget deficit in 2016 and a $552 million deficit in 2017, but the deficit grows even further to $1.7 billion in 2018 and $1.8 billion in 2019.  The OFA's deficit projections are similar to those  of OPM.   Read the entire story at CT News Junkie

The leaders of the legislature's Democratic majority recommended suspending the state's public-financing of elections for 2016, cutting social services, and retreating from two major initiatives on transportation and municipal aid. The suggested cuts are part of continuing negotiations with Governor Malloy and the Republican legislative minority over how to eliminate growing deficits projected for this fiscal year and the one that begins July 1.

Read the entire story in the CTMirror.

Posted 11/17/2015

State Comptroller Kevin Lembo announced today he is developing an alternative plan to restructure Connecticut’s payments into the cash-starved pension fund for state employees.  Unlike the plan Governor Malloy offered last month in which Tier 1 pension costs would be separated from the pension fund and paid for as a pay-as-you-go budget line item, Lembo's proposal would not split the pension system into two components (Tier 1 and all others).

Lembo isn’t the only official developing an alternative to the governor’s proposal.  State Treasurer Denise Nappier has said Connecticut needs to consider

Republican Legislators suggest the following concessions be pursued in upcoming contract negotiations:

• Requiring all non-hazardous duty workers to contribute 4 percent of their salary toward their pensions.
• Capping cost-of-living adjustments to future retirees’ pensions.
• Calculating pensions using only base salaries (excluding overtime).
• Developing a new, hybrid retirement plan that relies partly on a defined contribution for new workers.
• Suspending longevity payments for all workers after April 2016.
• Increasing state employee health and dental insurance premiums by 10 percent.
• Increasing drug co

Republican legislators laid out a vision for closing a $350 million budget gap that includes an early retirement incentive for state workers. The proposal contemplates that 1,600 state employees would accept the offer. They would be replaced by workers earning less money, saving the state $79.9 million in the current fiscal year and $95.6 million in 2017.  The Republican proposal was presented to Governor Malloy and Democratic legislators yesterday.   For details, read the story in the Hartford Courant

Posted 11/13/2015

Governor Malloy announced last week a sweeping plan to overhaul the state's pension system as well as the desire to reduce the state workforce by 500 employees via attrition. The proposed changes to the pension system would basically split the current system into two parts: those workers that are Tier 1, and those workers that are not, with Tier 1 pensions to be funded separately from all other pension tiers.  The Governor's office indicates this would reduce costs, but it is unclear what, if any savings would be realized.  Pension benefits are negotiated via SEBAC.  SEBAC's position is that