From the Hartford Courant
Rell Orders Travel Ban
By CHRISTOPHER KEATING And MARK PAZNIOKAS, Courant Staff Writers
May 6, 2008, 12:02 PM EDT
Facing a budget deficit as high as $80 million in the current fiscal year, Gov. M. Jodi Rell ordered an immediate ban today on all out-of-state travel by state employees that is paid with state funds.
If federal funding or other non-state sources pay for the trip, the ban will not apply.
"With tax revenues slipping below projections and the national outlook growing dimmer, we have to make sensible cost-cutting moves,'' Rell said in a statement.
She added, "My goal is to finish this fiscal year without additional budget problems – and my commissioners know that means economizing at every turn. We will continue to look for ways to achieve our goals while reducing expenses.''
Before the state's fiscal year ends on June 30, Rell is trying to save as much money as possible in order to reduce the projected deficit. The final fiscal totals will not be certified until early September, and if there is still a deficit at that point, the state's "rainy day fund'' for fiscal emergencies will automatically fill the deficit.
As the legislative session winds toward a close Wednesday, all fiscal bills have been placed off-limits as the result of Republican Gov. M. Jodi Rell's agreement with Democratic legislative leaders last week to live within the limits of the second year of a biennial budget, instead of increasing spending, as is usually the case.
Rell cited economic instability and declining tax revenues in a letter Monday to legislative leaders, asking them to refrain from passing any legislation that would either reduce revenue or incur costs in the next fiscal year.
With the state budget deficit ballooning to as high as $80 million, Rell and Democratic lawmakers announced Friday night that they have agreed to make no changes to the $18.7 billion budget for next year -- providing no increases to nursing homes and nonprofit agencies and smaller-than-expected aid for cities and towns.
House Speaker James A. Amann, D-Milford, said Democrats would abide by their budget agreement with the governor.
Mayors, union leaders and activists gathered earlier Monday at the Capitol to object to the deal struck by Rell and Democratic leaders, saying it will prevent anticipated increases in state aid to municipalities.
New Haven Mayor John DeStefano Jr. said the governor and legislators ignored the pressures on municipalities, most of which are facing tax increases, service cuts or a combination of the two.
"This is a clear statement of policy that says, 'Do nothing. Stick your head in the sand,'" DeStefano said. "It is a vision that lacks any kind of direction. It speaks to mediocrity."
He was joined by Stamford Mayor Dannel Malloy, Hartford Mayor Eddie A. Perez, Waterbury Mayor Michael Jarjura and officials from smaller communities.
Jean deSmet, the first selectwoman of Windham, said the state pays her community only $3.5 million in payments in lieu of taxes on tax-exempt properties that should generate $11 million annually.
"They do that every year. They stiff us on their taxes," she said.
The mayors were aware that changing the deal between Rell and the Democrats was unlikely at this late hour.
Asked if they were lobbying or trying to make their constituents understand that state officials share the blame for tough municipal budgets, Malloy said, "It's a little bit of all of that."
Copyright © 2008, The Hartford Courant
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