In addition to cutting funding for more than 6,500 state jobs, Gov. Dannel P. Malloy's new plan to balance the state budget also slices more than $25 million from over two dozen job training, economic development and tourism programs over this fiscal year and next.
"As everyone knows, this was not the path we chose, but at this juncture, it is the only path we can take," Malloy wrote Friday in a statement issued jointly with Lt. Gov. Nancy Wyman. "Connecticut is in the midst of the worst fiscal crisis it's faced in many, many years."
But while thousands of state workers could be out of a job by Sept. 1, according to administration officials, many of the programs that help create new ones, or prepare workers to find employment, already will have been cut.
At the Labor Department, the administration ordered cuts to four worker training programs, a career search networking service and two positions in the apprenticeship program.
The state's Opportunity Industrial Centers, which coordinate job preparation services to individuals with significant barriers to employment, as well as two job re-entry programs for ex-offenders also were cut.
These Labor Department cuts totaled $2.7 million over two fiscal years, but the administration made even deeper cuts in tourism promotion and other economic development efforts.
Malloy repeatedly chastised M. Jodi Rell's administration during last fall's campaign for not investing more in a tourism industry that, according to the U.S. Travel Association, generates $9.3 billion in annual economic activity and $1.4 billion in tax revenue for Connecticut.
The governor pledged to restore the statewide tourism marketing account to the $15 million annual level it enjoyed previously. But the plan offered to lawmakers Friday whittled the $15 million budgeted both for this fiscal year and next down to $10 million and $13.5 million,respectively.
Malloy's budget director, Office of Policy and Management Secretary Benjamin Barnes, said that the cut won't severely hinder tourism promotions. Because the program had been gutted in the last budget, it would take a few months to get full promotions up and running this fiscal year, and Barnes said that $10 million was all tourism officials could realistically expect to spend before the new fiscal year ends next June 30.
"It's not as much as we would like to spend, but it's still significantly more than last year," added Roy Occhiogrosso, Malloy's senior campaign adviser.
Still, the administration did pull back tourism and other economic development spending in a number of other areas as well.
About $4 million this year and $8.1 million next year was cut in total from promotion budgets for 20 separate tourism attractions and four regional tourism districts.
The governor also looked to save $782,349 next year by cutting general tourism, art and cultural grant programs.
Also on the chopping block were a two business incubator programs, assistance for fuel cell development and high-tech manufacturing in Connecticut's defense industry, a grant program to help revitalize downtown districts, and a small business marketing assistance initiative.
"I don't think the governor had many options, but I am concerned about these cuts," said Sen. Gary LeBeau, D-East Hartford, co-chairman of the Commerce Committee and one of the legislature's most vocal advocates for greater investment in cutting-edge technologies.
These reductions, coupled with more than $120 million in cuts across this fiscal year and next to the state's public colleges and universities, have to be addressed in the not-too-distant future if Connecticut is to expand its economic recovery, LeBeau said.
"We have to look to our future and I would hope these are going to be priorities," the East Hartford lawmaker added. "This really points to the need for (state employee unions) to get their act together and approval a concession deal."
"We know there are legislators of both parties who will find many things in this plan they don't like," Malloy and Wyman added in their statement. "To reiterate: we don't like most of what's in here, either. But we would remind everyone that if the legislature would like to remove a cut we've made from the budget, they have to replace it with another cut of the same value, and there aren't a lot of good options out there.
The concession package DID NOT guarantee no layoffs, that was all smoke and mirrors and nowhere was it clearly spelled out that the proposed package saved 1.6 billion over 2 years. The unions should stop talking. They lied to their members now are trying to save face and about 25 million dollars in dues and what did they offer up? Nothing, except their own membership. This all was likely going to happen anyway. Now they are asking members what
Read MoreStop scapegoating state employees. They voted, as is their right, on a package that was undefined, inequitable and in some cases absurd. Their vote should be respected by legislators, union leadership and the Governor.
The Governor has made these cuts...not state employees. The Governor set the concession bar unreasonably high, not state employees. The Governor negotiated in secrecy now layoffs are his last card. An obvious attempt to strong arm employees. He needs to respect them, not play them. He has other choices but has chosen not to implement them.
Over the past 20 years middle class income has
Read MorePerhaps I missed the news--I read what the Ex Branch was doing to save money and what the Judicial branch was and the numbers were in the hundreds and thousands. Where are the hundreds from the legislative branch? Since many of these same legislators were in office when this problem was created over the years, where is the sacrifice in their offices if we are all to share?
I agree this is possibly a major scare tactic to try get another concession. If it is it is cruel. The 45, 000 state employees are not responsible for this mess. They are the scape goat. Unfortunately there needs to be spending cuts and layoffs. The size of government is too big, numbers are down in DCF and Corrections. The state philosophy seems to be spend whatever you have so you get the same amount next year. It is ludicrious and irresponsible. Also, they just found $700
Read More@CT72: You posted twice that there was no guarantee of no layoffs. I am just curious why you would say this. Section VIII of the signed agreement says that the parties agreed "through June 30, 2015, there shall be no loss of employment for any bargaining unit employee hired before July 1, 2011, including layoff due to changes in the adopted budget signed by the Governor on May 5, 2011 subject to the limitations set forth in SEBAC 2009." This seems pretty clear to me, so it is hard for me to understand why you would say what you do.
This is so obviously political theater and saber rattling. Of course SEBAC will change the By-laws and enact a re-vote that will be passed. The Governor and Union leaders look like such children right now it's laughable. Are there any real leaders with integrity out there? The population just assumes now that all politics is just bs games. Our state and country has really lost it's way.
Michael Thoughts, I strongly AGREE with CT72!! What makes you think Malloy will honor another contract or agreement? What sign is he showing that will support anything that comes from his mouth or signature? Just the opposite is showing loud and clear. Malloy has not honored ongoing contracts. Malloy has turned away from those that supported him (State Union Employees). He stated he would not cut back on the State Safety net. Now we will be far below the required minimum staffing level of State Troopers mandated by law. Social Services are
Read MoreNo state union workers need to get laid off and no extreme program cuts need to happen. SEBAC can prevent all this from happening on Monday by agreeing to put a new deal on the Governor's table for all the public to see. State workers have a contract for health care and retirement until 2017 and do not have to bargain that away this year to address a temporary budget crisis. Just like we did in 2009, we can give the State another $700 to $900 million in give backs over the next two years through wage
Read MoreBoard of Regents head M. Meotti sold the higher ed reorg with the promise of $4.3 million in savings in personnel costs, and now their plan shows the elimination of just one high level position, at less than $150,000. He stated specifically that the savings would be pushed down to the colleges but, instead, the colleges and universities are taking the brunt of the hit, in both their budgets and in position cuts. How is any of this going to benefit the students?
@Chief: While I can understand your cynicism regarding what politicians say publicly, I have to respectfully disagree with your assessment. I believe that the signed tentative agreement provided layoff protection sufficiently. I have not seen Malloy not honor an actual ongoing contract, and if he comes back next year, SEBAC can do what they did with Rell and refuse to do further concessions. The layoff provision is the key concession SEBAC recieved from the Governor, and it is what would have given the leverage to avoid further concessions for years.
@Truth Justice...While I wish that your solution would work, the concessions of 2009 actually only added to our problems. A large component of the $700-900 million (depending upon whose calculations one uses) was a deferred payment to the pension plan, which has made the long-term situation worse. If you look at the numbers, wage freezes, furlough days, no longevity, and increase co-pays would only work if the furlough days were significant (my calculations are 15 to 20) and the co-pays go up as much if not more than the $100 in the tentative agreement. My hunch is that Malloy was
Read More"If the state does not change its demographic trajectory, it faces a bleak future."
A Connecticut Center for Economic Analysis report, "Recovery Stirring, But Will Connecticut be Too Old to Compete?"
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