Cat Key List

New: Operation ACE Recommendations Revised 12/11/03

Office of Policy and Management Letter: Deficit Mitigation Plan

Balanced Budget Plan Detail: Spending Reductions (In Millions)

Revenue Increases (In Millions)

STATE OF CONNECTICUT
OFFICE OF POLICY AND MANAGEMENT

December 6, 2002

Hon. Joseph Crisco, Co-Chairperson

Hon. William Dyson, Co-Chairperson Appropriations Committee

Room 2700, Legislative Office Building Hartford, Connecticut 06106

Via: Susan Shimelman, Director of Fiscal Analysis Dear Senator Crisco and Representative Dyson: Re: Deficit Mitigation Plan

As you are aware, the budget that was adopted for the current fiscal year is seriously out-of-balance. As of November 20, 2002, the Office of Policy and Management was estimating that the state will end the year with a deficit of $391.0 million. The legislature's Office of Fiscal Analysis is projecting a deficit of approximately $496 million.

Last night, Governor Rowland indicated that he was prepared to submit a deficit reduction plan and have that plan considered by the General Assembly in a Special Session later this month. Attached you will find the Governor's plan to close the FY'03 deficit. Today, the Governor has filed the necessary paperwork with the Secretary of State to call the General Assembly into a Special Session on December 18, 2002.

Sincerely,

Marc S. Ryan

Secretary

450 Capitol Avenue ..Hartford, Connecticut 06106-1308
www.opm.state.ct.us

Governor Rowland's "Balanced Budget Plan" Summary

Estimated Deficit - 11/20/02	$ 390.9
Labor Concession Lapse	94.0
Total	484.9
Spending Reductions	201.1
Revenue Loss Due to Spending Reductions	(6.6)
Revenue Increases	203.8
Achieving the $94M in Union Concession Lapses	94.0
Total	492.3
Estimated Balance - 6/30/03	$ 7.4

Governor Rowland's "Balanced Budget Plan"

	Gross Savings
*Spending Reductions (In Millions)*	$
Legislative Management Eliminate CTN	0.750
Office of Policy & Management PILOT-New Manufacturing Machinery & Equipment	20.000
Eliminate Drug's Don't Work	0.085
Eliminate LEAP	0.901
Eliminate Children and Youth Program Development	0.217
Eliminate Justice Assistance Grants	0.699
Eliminate Neighborhood Youth Centers	0.580
Eliminate Boys and Girls Club	0.087
Eliminate Drug Enforcement Program (OTLG)	0.692
Eliminate Drug Enforcement Program (PTLG)	2.675
Eliminate Waste Water	0.237
Department of Public Safety Reduce Fleet Purchase	1.600
Department of Public Health Reduce Children's Health Initiatives	0.220
Eliminate Tobacco Education	0.084
Eliminate CT Immunizaton Registry	0.091
Reduce Children with Special Health Care Needs	0.051
Reduce Community Health Services	2.600
Reduce Emergency Medical Services Regional Offices	0.025
Reduce Genetic Diseases Program	0.027
Reduce School Based Health Clinics	0.591
Department of Mental Retardation Reduce Personal Services - Overtime	1.000
Department of Mental Health & Addiction Services Eliminate Regional Action Councils	0.191
Reduce General Assistance Managed Care	10.000
Eliminate Governor's Partnership	0.164
Department of Social Services Children's Health Council Eliminate support for Children's Health Council	0.572
State Food Stamp Supplement Eliminate State Food Stamp Supplement program	0.700
HUSKY Program Freeze HUSKY B enrollment	0.500
Medicaid Eliminate HUSKY Adults	12.000
Address reimbursement levels for home health nurses	3.000
Institute a prescription co-pay of $1 for Medicaid fee-for-Service	1.100
Reduce dispensing fee from $3.85 to $3.50	1.200
Reduce reimbursement from AWP-12% to AWP-13.5%	2.900
Eliminate Presumptive Eligibility	1.400
Eliminate Continuous Eligibility	0.800
Eliminate self-declaration provisions at application and re-determination Eliminate Guaranteed Eligibility	1.200
Institute a co-pay of $1 under Medicaid Fee for service for certain services	1.650
Aid to the Aged, Blind and Disabled Eliminate pass-through of federal SSA COLA to AABD	0.473

*Spending Reductions (In Millions)*	$Gross Savings
Temporary Assistance to Families - TANF Limit the number of extensions under TFA	0.765
Connecticut Pharmaceutical Assistance Contract to the Elderly Limit ConnPACE prescriptions to 30 day supply	2.100
Increase co-pay for all ConnPACE enrollees from $12 to $15	1.800
Institute an asset test for ConnPACE enrollees	0.550
Safety Net Services Reduce Safety Net appropriation by half	1.672
Transitionary Rental Assistance Reduce TRAP appropriation by half	0.566
Child Care Services - TANF/CCDBG Reduce Income eligibility for Transitional Child Care from 75% SMI to 50% SMI	0.614
Human Resouce Development Accounts (Including HRD-Hispanic) Reduce HRD appropriations by half	1.602
DSH - Urban Hospitals Increase Hospital DSH	(12.900)
State Administered General Assistance Eliminate SAGA	23.360
State Library Reduce Basic Cultural Resources Grant	0.126
Reduce Support Cooperating Library Services Units	0.300
Eliminate CT Educational Telecommunications Corp	0.217
Department of Higher Education Reduce Minority Advancement	0.124
Reduce National Service Act	0.100
Department of Children and Families Personal Services Eliminate Certain functional areas/reduce staffing	0.170
Reduce Other Expenses	0.191
Grants to Psychiatric Clinics for Children Reduce Child Guidance Clinic funding which has failed to reduce waiting lists	0.240
Board and Care for Children - Adoption Eliminate COLA for adoptions payments	0.351
Reduce Various Uncommitted Funds	0.921
Council to Administer Children's Trust Fund Reduce Children's Trust Fund	0.285
Department of Transportation Reduce Town Aid Road	12.500
Mashantucket Pequot and Mohegan Fund Reduce Grants to Towns	50.000
Other Reductions