Where We Live: The Connecticut Budget Forecast

Gov-elect Dan Malloy will face a nearly 3.8 Billion deficit when he takes office on January 5th.  But is it really that bad???

Well yeah, it’s bad…in fact, a new economic report by UConn economists is called “A Very Deep Hole Indeed.”  And the problem they see isn’t just a deficit – they say nearly 4 hundred thousand of the state’s 2 millions residents who want to work are unemployed or underemployed. 

They call for “smart” cuts to government, restructuring of the tax base and some stimulus borrowing. 

With his new 22 member transition team in place, Malloy is already thinking about what to do…and he’s starting with GAAP.  That’s not another metaphor for deficit – it’s the accounting rules he and his Lt. Governor Elect Nancy Wyman have pledged to adopt.  While it may not be pretty – Malloy expects GAAP accounting to provide a more accurate picture of just how big the gap is. 

Today, where we live budget guru Keith Phaneuf of the Connecticut Mirror joins us to talk about the unpleasant realities and political obstacles facing the state. UCONN economist Fred Carstensen will be here to talk about his partly cloudy economic forecast for the state – and how to avoid a grim future.