CONNECTICUT'S BUDGET

THIS YEAR, THE STATE OF CONNECTICUT HAS A PROJECTED SHORT FALL (DEFICIT) OF FOUR HUNDRED MILLION DOLLARS ($400,000,000.000) WHICH ENDS JUNE 30, 2008. NEXT YEAR FISCAL YEAR 2010, THE ESTIMATED DEFICIT WILL BE $2.5 BILLION ($2,500,000,000.00). IF NOTHING CHANGES FOR THE FISCAL YEAR 2011, THE DEFICIT WILL BE $3.3 BILLION ($3,300,000,000.00). THE PROJECTED SHORT FALLS COULD EVEN BE WORSE THEN EXPECTED. THE STATE LEGISLATURE STARTS ON THE 2010 BUDGET IN FEBRUARY, 2009.

RIGHT NOW, THE ESTIMATED UNEMPLOYMENT IS ABOUT 5.6% AND IF THE ECONOMY CONTINUES TO GET WORSE, IT COULD REACH AS HIGH AS 10% WITHIN A FEW YEARS.

THERE IS THE POTENTIAL OF THIRTY THOUSAND (30,000) LOST JOBS STATE WIDE. A DEFICIT OF ABOUT 14% OF THE ESTIMATED $18 BILLION BUDGET. SERVICES ARE STEADILY INCREASING (MEDICARE, STATE SALARIES, PUBLIC EDUCATION, AND INTEREST DEBT).

JAMES A. AMANN, THE HOUSE SPEAKER SAID, "THIS IS THE WORST I'VE SEEN IT. IT'S IS CLOSE TO THE FIRST YEAR I CAME TO HARTFORD, AND THAT WAS THE INCOME TAX YEAR."

SENATE PRESIDENT, DONALD E. WILLIAMS SAID, "I THINK FOR THOSE FOLLOWING THE STATE OR THE NATIONAL ECONOMY, IT'S A SOMBER TIME. WE'RE FACING MORE SIGNIFICANT CHALLENGES THAN WE'VE EVER SEEN BEFORE."

REPRESENTATIVE DENISE MERRILL, OF MANSFIELD (THE INCOMING HOUSE MAJORITY LEADER) SAID, "EVERYONE SEEMS TOO WILLING TO SAY, 'THINGS ARE GETTING HORRIBLE AND WE JUST HAVE TO CUT THE BUDGET TO SHREDS.' MERRILL SPOKE HOW WITH INCREASED UNEMPLOYMENT THERE WILL BE MORE NEEDS BY THE CITIZENS OF CONNECTICUT. SHE ALSO SAID, "IT'S ALWAYS A REVERSE CURVE. WHEN THE ECONOMY IS GOING DOWN, IN SOME CASES, WE NEED MORE SPENDING BECAUSE WE'RE GOING TO HAVE MORE NEED."

THE LAST TIME THE STATE OF CONNECTICUT WAS IN THIS KIND OF SITUATION, WAS UNDER GOVERNOR JOHN G. ROWLAND IN 2002. THERE WAS EIGHT HUNDRED THIRTEEN MILLION DOLLAR ($813,000,000.00) DEFICIT. GOVERNOR ROWLAND LAID OFF 3,000 STATE WORKERS.

THE STATE GOVERNMENT HAS TO CUT THE PORK OUT OF PROGRAMS. THEY WILL EITHER NEED TO INCREASE TAXES, OR CUT SPENDING OR A COMBINATION OF THE TWO. SHOULD THE MOHEGAN GOVERNMENT BE LOOKING AT WHAT IS HAPPENING AROUND US (THE MOHEGAN TRIBE)? WHAT DO YOU THINK?
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