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It’s Pouring: Malloy Says Empty $235M Rainy Day Fund to Cover 60% of Deficit

May 10, 2017 By Staff
It’s Pouring: Malloy Says Empty $235M Rainy Day Fund to Cover 60% of Deficit

Facing a near-$400 million deficit in the fiscal year ending September 30, Gov. Dan Malloy (D-Conn.) proposed emptying out the Rainy Day Fund on Wednesday.

Gov. Dan Malloy (D-Conn.) proposed emptying out Connecticut’s $235 million Rainy Day fund on Wednesday, in order to meet part of a $389 million deficit the state needs to close before September 30.

The use of all $235.6 million of Connecticut’s Rainy Day reserves, proposed by Malloy in a letter to legislative leaders on Wednesday, would cover about 60 percent of the projected $389 million deficit for the fiscal year that ends in less than five months.

CTNewsJunkie posted Malloy’s letter on Wednesday.

Malloy also proposed $99 million in “revenue transfers,” one of two parts to his deficit-closing plan that require legislative action. The transfers involve some advanced accounting, transfer and sweeping various funds to meet Connecticut’s balanced budget requirement before the end of the fiscal year.

Malloy laid out $33 million in emergency cuts to meet the $389 million deficit as well. One of the hardest-hit departments is Social Services ($11.4 million in cuts).

Connecticut’s projected budget deficit for the next two fiscal years (2018 and 2019) is around $4.7 billion.