Report: CT budget cuts could weaken economy
As the Connecticut General Assembly and Gov. Dannel P. Malloy meet to discuss the $415 million projected budget deficit today, researchers at the Connecticut Center of Economic Analysis (CCEA) have issued a report stating the state’s economic recovery may be in jeopardy if government officials rely solely on cuts to solve the budget gap.
“With the state’s economy still struggling to recover, the cuts in public sector expenditure will weaken the economy further, and may even put the state back into recession — measured in terms of contracting output for at least two quarters,” the report stated.
Malloy has previously stated the gap will be solved without an increase in taxes.
Researchers at CCEA, housed under the University of Connecticut, predict budget cuts without offsetting policies and initiatives, would result in 35,000 additional jobs lost,which would be the worst contraction since World War II.