On May7, as this edition of BNH went to press, Gov. M. Jodi Rell signed into law SB 494, "An Act Making Adjustments to State Expenditures for the Fiscal Year Ending June 30, 2011," which closes a $700 million deficit and reduces the level of borrowing without raising taxes or cutting state aid grants to cities and towns. It also brings to a close perhaps the most contentious budget process in state history between the Republican governor and the Democrat-dominated General Assembly.
Eager to put the best face on the bill, Rell's office says that the agreement saves money in future budget years while preserving essential services. It cuts spending by state agencies by $163.4 million and lowers interest expenses by more than 50 percent: $133.5 million over eight years versus $300.6 million over ten years.
"This budget is not perfect - I would have preferred to see more cutting in state spending and greater reductions in the overall size and scope of state government," said Rell. "Yet this agreement closes major deficits and does so without raising taxes or transferring the burden to property taxpayers. Along with reducing our borrowing, these were my bedrock goals as we developed this plan."
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