Despite Concessions, Montville Budget Still In Limbo

Gov. Dannel P. Malloy reached an agreement with state employees' unions today that saves $1.6 billion in the short-term, but with $400 million left to make up, towns are still left to wonder what funds will be cut. 

“He made it a point in saying there will be no more taxes so we still don’t know what his plan is on the cut side,” said Montville Mayor Joseph Jaskiewicz. “I think it’s great that they (state workers) did that but he’s still got to make up the 400 million, that tells me he could possibly be coming back and cutting.” 

Jaskiewicz said that he can halt capital improvements for a year but another cut in state funding could be devastating. He said he’d have to increase the tax rate or reduce services either in education or public works. 

“It looks like to me, something’s going to happen, he’s got to make up the gap,” Jaskiewicz said of the governor. 

Jaskiewicz named the $1.7 million Pequot Fund and the Education Cost Sharing fund as likely candidates for reduction or elimination, as was indicated on the Governor’s “Plan B” budget. 

“Not only with the Pequot and with ECS,” Jaskiewicz said. “He (Malloy) would probably take that money back, obviously they (school district) would have to lay off, I can’t make up that. It could be devastating, it could be an big impact to the town.” 

The Governor reached an agreement with state employees unions today that, “in the short-term, over the next two years, this agreement will save taxpayers 1.6 billion dollars. The remaining 400 million dollars we need to balance this budget will come from a mix of additional spending cuts and existing budgeted revenues, taxes will not rise beyond what is already in this budget,” according to a press release. 

The terms of the agreement have not been made public but the savings were made in health care, pension benefits and wages, the release said. And no furlough days were mandated. The Governor also rescinded all the layoffs and promised job security for public employees and said the state will reduce its work force by attrition and elimination of managerial positions.

The agreement has yet to be ratified by individual unions but if it is, it will affect the state’s budget for 20 years. Malloy said the agreement will save Connecticut taxpayers a total of $21.5 billion.