#HARTFORD, CT – The Office of Policy and Management today released the annual Fiscal Accountability Report. The report describes factors affecting Connecticut’s budget this year through 2018.
The report indicates that a $99.5 million deficit would be projected for FY 15 should the State not take any administrative action to manage it. That action has already begun – OPM Secretary Ben Barnes has written to state agencies, asking them to reduce expenditures and curtail hiring. OPM is also developing allotment rescissions that will reduce spending.
Barnes said “This is consistent with what the administration has been saying – that no matter what the projections are we will manage and administer the budget so that there will be no deficit. It is important to remember that this is a prediction of what would happen now and in the future should we do nothing – and doing nothing is not an option.”
He added that “Raising taxes is not an option, either. Any budget issues will be resolved by prudent decision making and difficult choices, should they be necessary. Solving the problems the first year will go a long way towards eliminating issues projected for the succeeding years.”
The report discusses the steady progress Connecticut has made over the last four years by
- Addressing structural budget imbalance and producing balanced budgets;
- Implementing Generally Accepted Accounting Principles;
- Shoring up the state employee pension system;
- Streamlining state government;
- Undertaking a broad program of economic development; and
- Reforming education.
The report shows that the performance of the economy, as the state and nation continue to recover from the “Great Recession”, has significantly hurt state revenues and expenditures. Despite that, progress is being made. Employment growth is beginning to tick upwards and local economists recently predicted 25,000 new jobs in Connecticut next calendar year.
Importantly, the report notes that national and international issues, and the way they are resolved, will continue to drive economic conditions in Connecticut.