HARTFORD, Conn. (AP) - A somber Gov. M. Jodi Rell warned Wednesday that Connecticut is facing massive state budget deficits _ nearly $6 billion over the next two fiscal years _ and said the only way out of the financial mess is to cut spending.
Rell, a Republican who leads one of the nation's wealthiest states, said America's economic problems decimated state revenues. State income tax, sales tax and casino revenues have all dropped significantly in recent months.
``The forecast for our economy is indeed very bleak,'' said Rell, flanked by her lieutenant governor and budget director at a state Capitol news conference. She called the latest deficit projections ``absolutely astounding.''
Rell's budget office is providing the General Assembly, controlled by Democrats, with a report on the state's fiscal condition. It shows a projected $2.6 billion deficit for the 2010 fiscal year, which starts on July 1, 2009. The 2011 fiscal year would be $3.3 billion in the red with spending at current levels, according to the report.
Rell is expected to unveil her new, two-year budget proposal to the legislature in February.
Meanwhile, she has called lawmakers back to the Capitol on Nov. 24 to pass a plan to cover the current fiscal year deficit, estimated at $300 million.
Connecticut had hoped to avoid the brunt of the national fiscal crisis. The state did not begin experiencing deficit problems until late this year, much later than other states. Connecticut also still has a budget reserve fund of $1.4 billion.
But because of the state's strong ties to Wall Street, including a large number of employees who commute from Connecticut to New York, Rell said the state has become sucked into the financial morass.
``It's a scary time and it's a truly difficult time for our state and our nation,'' said Rell, uncharacteristically grave.
Rell said she's opposed to raising taxes, but will be forced to propose budget cuts in her new tax and spending plan that will ``hurt people and hurt programs.'' While she said she's doing her best to avoid laying off state employees, Rell repeated several times that ``everything is on the table, every single item.''
``Raising taxes in this economy is the worst thing we can do at any level,'' she said.
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