May 15, 2018 / 9:05 PM / 11 days ago

Connecticut governor signs budget adjustment, warns of deficit

May 15 (Reuters) - Connecticut Governor Dannel Malloy signed an adjusted budget for the next fiscal year on Tuesday but warned that the state is facing a deficit of nearly $2 billion in fiscal 2020.

The state, which has been grappling with large debt and pension burdens, will have $1.16 billion in its rainy day fund. But that may not be enough to withstand the next recession, Malloy noted.

“Despite these concerns, this budget contains many things to be proud of, it was adopted on time, and I am hopeful that its problems can be addressed,” he wrote in a letter to the General Assembly posted online alongside notification that he had signed the bill.

Lawmakers adjust the spending plan during their legislative session before the start of the second year in the state’s biennial budget process.

Last year, the two-year budget for fiscal years 2018 and 2019 was four months late, leading to chaos for some school districts and social service providers in particular.

Malloy, a Democrat, is not seeking re-election this year after serving two terms in office.

Reporting by Hilary Russ in New York Editing by Matthew Lewis

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