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Malloy Signs Budget, Vetoes $1.1 Billion Line Item on Hospitals

November 1, 2017 By Staff
Malloy Signs Budget, Vetoes $1.1 Billion Line Item on Hospitals

The governor signed the bipartisan budget into law on Tuesday, ending Connecticut's budget crisis – save for one major line item.

Gov. Dan Malloy (D-Conn.) signed the bipartisan budget into law on Wednesday, ending Connecticut’s four-month budget crisis and offering state employees, cities and towns, and businesses some certainty for the next two fiscal years.

“After 123 days without a budget, it is time to sign this bipartisan bill into law and continue the steady and significant progress our state has made over the past several years,” Malloy said.

Nevertheless, Malloy cited several issues he has with the budget:

  • “Damaging sweeps to energy funds”
  • “Cuts to economic developments programs”
  • “Problematic assumptions on both the revenue and expenditure sides of the budget,” which Malloy says could lead to more deficits

Malloy also vetoed a $1.1 billion appropriation to hospitals ($600 million in FY 2018, $496 million in FY 2019) reimbursing them – with anticipated federal dollars – for paying a higher provider tax. Malloy says the legislature can’t allow hospitals to wait to pay the tax until they receive an appropriation from the state.

Of course, Malloy could have avoided more than a month of the crisis if he had signed the GOP-led budget that passed both the Senate and the House in late September. He caved to pressure from legislative Democratic leaders, though, who didn’t want the budget signed into law, and vetoed the bill.