Gov. Ned Lamont’s administration has directed agencies to find ways to cut spending by 10% or more in the next two fiscal years as it anticipates a lengthy, coronavirus-induced, economic downturn. State finances are projected to run $2.5 billion in the red this fiscal year, which began July 1. But Connecticut’s emergency reserves have grown since the pandemic began, and they are expected to exceed $2.8 billion once the audit of the 2019-20 fiscal year has been completed in September. The bigger problem, according to McCaw’s office, is projected deficits topping $3 billion in each of the next two fiscal years. Lamont must propose a plan to legislators in February to balance that biennial cycle, which runs from July 2021 through June 2023. The legislature tasks the Executive Branch annually with achieving savings targets through attrition or other efficiencies once the budget is in force. The savings goal for the just-completed fiscal year was $209.2 million in the General Fund, which covers about 90% of all operating costs in the overall budget.
Lamont tells CT agencies to prep deep cost cuts for next budget