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February 20, 2009
Governor's "Deficit Mitigation" Plan: Impacts on Municipalities
Governor Rell has just released a mid-year deficit-mitigation plan for the present fiscal year.
Highlights include:
- no mid-year reductions or cuts in formula grant programs for municipalities;
- transferring $35 million from the Local Bridge Program. The Governor’s press document states that the program
is "underutilized" – however ConnDOT reports that the funding is all obligated for local projects – CCM
will notify affected municipalities as soon as possible;
- transferring $11 million from the Farmland Preservation, Affordable Housing and Historic Preservation
Fund (paid for by the land use surcharge);
- transferring $6 million from the Energy Conservation Load Management Fund;
- eliminating $2 million in "school safety" funding that was to be distributed to school districts;
- eliminating the unused funds from the DEP Clean Diesel Bus program (about $1 million);
- recession of certain small education programs such as Youth Services Bureau enhancement ($31,000) and
Head Start enhancement ($88,650).
The Governor also proposes redeployment of state police, but excludes school resource officers from that redeployment.
There does not appear to be an impact on the resident state trooper program, but CCM continues to seek clarification on that.
The General Assembly is expected to act on a deficit-mitigation package next Wednesday, February 25. The legislative
caucuses have not yet released their plans. We will keep you apprised.
CCM will notify municipalities as we learn more about the impacts of this proposal, and specifically about municipal
projects that may be affected by the fund transfers.
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For more information contact Gian-Carl Casa, Barbara Rua or Jim Finley of CCM at (203) 498-3000.
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