Himes: GOP Budget Bill Could Pose New Problems For State

WASHINGTON--Even as Gov. Dannel P. Malloy finalizes his proposal to close next year's projected $3.67 billion budget deficit, lawmakers in Washington might open a new hole in the state's current fiscal blueprint.

The House is poised to take up a bill this week that would slash domestic spending by $100 billion, compared to the president's request for fiscal year 2011, which is now five months underway.

The Republican proposal takes a knife to dozens of federal programs, from community policing grants to job training funds to low-income energy assistance. The GOP plan, which seeks to make good on a promise to roll back federal spending to 2008 levels, could cost Connecticut and other states millions of dollars in anticipated federal aid.

For example, the House bill would cut $17.5 billion from labor, health and human service programs; $15.5 billion from transportation and housing programs; and $3.6 billion from energy and water programs, compared to 2010 funding levels.

The current spending law now in place preserved flat funding, compared to 2010 levels, for most programs. And that's what states assumed they would get for the remainder of fiscal year 2011.

"To have to reopen the current budget would add another fiscal problem on top of the ones we're already trying to cope with," said Gian-Carl Casa, undersecretary of legislative affairs at the Office of Policy and Management.

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