Subject: ADVOCACY NEWS - MidTerm Compromise Budget passes

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ADVOCACY NEWS
MAY 13, 2016
MIDTERM COMPROMISE BUDGET PASSED
THANK YOUR LEGISLATORS!
NEWS courtesy CT Community NonProfit Alliance Update
"On Friday, May 13th at 7:58pm the Connecticut General Assembly passed a $19.7 billion final midterm budget adjustment (SB-501) for state fiscal year (SFY) 2017. 

The budget passed in the Senate along strict party lines, followed by a vote in the House along mostly party lines during Special Session. The budget lessened the magnitude of cuts to life-sustaining programs and services originally proposed by the Governor. Although this budget does include painful spending reductions, the majority of the cuts were mitigated thanks to your tireless advocacy throughout this legislative session. Thank you.

This budget represents the eighth revision submitted this session, not including the deficit mitigation package from March. It is based on the April consensus revenue forecast, which was adopted in early May. Due to lower than expected income tax receipts, a budget deficit of $259 million has been projected for SFY16, which will likely be resolved by transferring funds from the Budget Reserve ("Rainy Day") Fund or through bonding.

To address the projected budget shortfall for SFY 17, the legislature enacted $830 million in spending cuts by: reducing almost every line item across most state agencies, delaying $50 million intended for the transportation improvements, delaying $50 million intended for municipal revenue sharing, reducing Education Cost Sharing grants to cities and towns ($32 million), and eliminating the $8 million cost of living adjustment (COLA) for private providers, among other reductions. The adjustments also count on a number of temporary and one-time revenue sources, enhanced tax collections, and payoffs from lottery marketing. These revenues will not be carried forward into the following fiscal year. Overall, the budget reduces spending for the general fund by 4.4 percent when compared to the original budget passed last year.

The final budget contains no tax increases, avoids tapping the Budget Reserve Fund of $406 million, and rolls back “new” money originally sought by leadership for transportation funding (part of the Governor’s transportation initiative) and revenue-sharing with municipalities (part of the majority Democrats’ property tax relief initiative)."    More...
DECD, Arts & Culture Budget Items.
See p.9 of linked document for details of Dept of Economic and Community Development budgets. All our line items are cut by 10.3% – 10.46% from the original FY17 appropriation (with the exception of the Arts Commission, 4.86%, and Statewide Marketing, 31.58%).
WHAT YOU CAN DO
Thank your legislators for the work they have done to restore as much of our budgets as they could.

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