When Gov. Dannel Malloy was trying to squeeze concessions out of the state employee unions to balance his budget, he started the process of issuing pink slips. People freaked when they started hearing about closing DMV offices, courthouses and cuts to other state services. After December 19th, those “threats” become reality. In addition, any state employee hired after July 1, 2011 is subject to layoff. It’s going to be ugly.
The General Assembly is scheduling a special session for the 19th and possibly the 20th. The Malloy administration is putting together a budget deficit mitigation plan. It will not include tax increases such as higher rates—they are off the table, The Shad is told.
On the table?—aide to cities and towns and layoffs. The administration has no desire to go there but it might be necessary. They need to cut somewhere in the neighborhood of $451 million. Fiscal Cliff? This will look more like an historic precipice.