Malloy Proposes State Layoffs, Pension Changes, Tax Reforms

FAIRFIELD COUNTY, Conn. -- Gov. Dannel P. Malloy unveiled plans Wednesday to cut 500 jobs, restructure the state pension system and address the corporate tax hike to encourage businesses to continue moving to Connecticut.

Connecticut Gov. Dannel Malloy
Photo Credit: *Alissa Smith*

K Reakes

10/28/2015 8:30 p.m.

The steps are planned to improve Connecticut's budget, he said.

“Together, as Democrats and Republicans, we can use this moment to not only address our short-term situation, but also to have an important conversation about the sustainability of our budget over the long-term,” Malloy told his Cabinet members. “By setting clear priorities and making smart investments, Connecticut can create a sustainable budget and a sustainable economy.”

During the presentation, the state administration outlined key principles that will be used in making budgetary decisions including the following:

Make the pension system more affordable by splitting the SERS system into two funds.
Continue to reduce the state workforce, with a target of reducing 500 additional positions for fiscal year 2016 through attrition.
Help grow jobs with sensible tax restructuring by improving the unitary corporate tax to support Connecticut headquartered companies that invest in the future of the state's economy:
Preserve core services by keeping more people healthy and safe, trained and employed, and families stable.

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