By Keith M. Phaneuf
Gov. Dannel P. Malloy today—for the second time in five months—challenged legislative leaders to offer alternative spending cuts rather than complain about his decision to suspend payments to hospitals to mitigate the state budget deficit.
The Democratic governor took heat from legislators from both parties last week after he suspended about $140 million in payments earmarked for hospitals in connection with the state’s health care provider tax. The governor also is withholding $3.89 million in payments for community health centers.
State Comptroller Kevin P. Lembo certified a nearly $220 million general fund deficit last week for the fiscal year that ends June 30. And the legislature’s nonpartisan Office of Fiscal Analysis places the shortfall at slightly more, $266 million.
Most of the this deficit is caused by eroding state income tax receipts identified in projections issued in late February.
