Connecticut could end up without a budget when the next fiscal year begins July 1, according to a Hartford Courant report.
The state has yet to finalize a spending plan. Therefore, Democratic Gov. Dannel Malloy is preparing for the possibility of running the state without a budget, according to the report.
"What I indicated is that I would come out with principles that would guide how we expected to fund state operations after July 1 should we not have a budget. I'd like to have a budget by July 1," Mr. Malloy said Tuesday after a budget meeting.
In the event the state does not have a budget by then, multiple things would happen so the state could continue running. The governor would accept responsibility for Connecticut's finances and would be able to cut certain accounts without approval from lawmakers, according to the report. The report notes Mr. Malloy, however, would still not be able to cut aid to cities and towns without such approval.
State legislative members have mixed views on whether the state will have a budget by July 1.
Democratic Sen. Cathy Osten, co-chairwoman of the appropriations committee, was overall optimistic.
"I don't think there's anything we cannot get beyond," she said, according to the report. "We're going to meet and we're going to come to a compromise and we're going to do what the people in Connecticut think we should."
But Senate Republican Leader Len Fasano was less optimistic, telling reporters Tuesday his "gut reaction" is the state will make it past July 1 without a budget, although he was uncertain how far past July 1.
The possibility of Connecticut without a budget by next fiscal year comes as the state's deficit is estimated to exceed $5 billion over the next couple years, and after the General Assembly failed to adopt a spending plan prior to adjourning last week, reports Hartford Courant.
A tentative labor deal between the governor's office and state employee unions is at the center of budget discussions. As is, the deal would make more than $1.5 billion in labor concessions, and is "the best possible deal," according to Democratic leaders. However, Republican legislators believe the concessions are still too large.
Overall, "what I want to do is protect the state from expending too much money with the appreciation that this is a really tight budget," Mr. Malloy said.
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