State Taxes, Concessions

After a summer of layoff threats and rescinded layoffs, Gov. Dannel P. Malloy and state unions agreed on a $1.6 billion savings and concession deal.

Some Republicans charged that Malloy's accomplishment is somewhat hollow -- they estimate that at least $600 million of the savings and concessions consists of smoke and mirrors designed to balance the two-year state budget. Even the legislature's nonpartisan fiscal office says it cannot verify some of the financial assumptions, though Malloy and his budget chief say they are confident they will reach the projected savings. By the end of November, budget officials were projecting to generate a surplus of more than $100 million in the current fiscal year -- finally pushing the state back into the black.

While the number might seem surprising after years of major budget problems, the surplus is attributable to the largest tax hike in state history, which started July 1 -- as well as to the state income tax hikes retroactive to Jan. 1. The surplus also represents less than 1 percent of the state's $20 billion annual budget, and officials cautioned that volatility in the unpredictable stock market over the next six months could change the projections markedly -- making the surplus either higher or lower.

Now, $8.5 billion of the $20 billion annual budget will be paid through the state income tax. That is largely because lawmakers have steadily increased the rates on the state's wealthiest residents

4:01 PM EST, November 29, 2011

With Tax Increases Kicking In, State Budget Surplus Projected At $101 Million

With the largest tax increase in Connecticut history kicking in, the state is projected to generate a surplus of more than $100 million in the current fiscal year - finally pushing the state into the black.

8:44 PM EDT, June 18, 2011

Union Leaders Try To Rally Rank And File; Infighting Emerges

Union officials who represent state prison workers clashed Saturday over a proposed labor concessions agreement with the Malloy administration, with one saying his members had "resoundingly rejected" the deal in a vote on Thursday and another calling it the "best way to protect our pay and benefits."

8:07 PM EST, January 25, 2011

Malloy To Offer No-Increase Budget

HARTFORD — Gov. Dannel P. Malloy said Tuesday that the state budget he unveils next month will fully fund state pensions and not rely on borrowing money to pay operating expenses — two departures from recent years.

Copyright © 2012, The Hartford Courant