Gov. Lamont releases plan to close $2B deficit mostly with state’s rainy day fund

Gov. Lamont releases plan to close $2B deficit mostly with state’s rainy day fund

Gov. Ned Lamont released a plan Thursday for closing a $2 billion budget gap that relies mainly on using $1.8 billion of the state’s $3 billion budget reserves. The administration’s plan proposes $25.3 million in cuts to discretionary spending across all three branches of government, including $17.5 million from executive branch agencies. It also recommends the legislature approve $10.6 million in budget cuts and assumes $30 million from hiring restrictions. McCaw said the administration is not proposing to freeze all hiring. The governor’s plan additionally anticipates using $100 million in federal COVID-19 relief funds. There are $33.2 million in proposed tax changes that will require legislative approval. The governor’s plan also proposes to suspend the transfer of $5.7 million in hotel and car rental taxes to fund grants to municipalities to support regional delivery of services.

Gov. Lamont releases plan to close $2B deficit mostly with state’s rainy day fund

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