The state faces an estimated $3.5 billion budget deficit over two years.
"The places we have failed in we have recently had success in because we have redirected funds to those communities and this budget takes that money away and this budget dismembers the programs that have brought about this change", Malloy said. His decision will continue the state's ongoing budget impasse and all but ensures drastic cuts to municipal aid beginning next week.
When the month of September began, it was the third month in which CT lacked a two-year budget for the new fiscal year that began on July 1.
Malloy said the Democrats' budget would not increase the income or sales taxes, would cut spending by hundreds of millions of dollars and would restore hundreds of millions of dollars in town aid.
Governor Dannel Malloy today said the state will probably not have a budget in time to distribute education funding to towns on October 1. It also calls for an annual spending cap of $2 billion.
Republicans offset those expenses by excluding line by line funding for the Housing Department and the Office of Early Childhood.
The lack of a state budget is now turning into a battle over local school funding.
The Republican budget features a proposed cut to UConn worth $240 to $300 million depending on the source of the number.
Further cuts to education include the phasing out of the Roberta B. Willis scholarship fund. UConn President Susan Herbst called it "appalling" in a message sent to students, employees and alumni Saturday.
Their plan relies heavily on changes in state employee pensions after the existing state union deal ends in 2027.
They argue that their plan achieves $270 million in additional savings by requiring workers to pay more toward their retirement benefits, eliminating cost of living adjustments until the balance of the retirement system stabilizes, and eliminating overtime from the calculation of workers' salaries for pension benefits.
And the Republicans say that absent some new agreement in the next nine days, the Governor should sign their budget into law.
The Department of Energy and Environmental Protection is slated to see a decrease from about $55 million to roughly $47 million when the Republican budget is compared to the Democratic proposal.
Moderate Democrats who voted for the GOP budget have said it was more of a statement against the Democrats budget. The Democrats' plan includes a new 49-cent monthly surcharge on cellphones, a $12 surcharge on homeowners' insurance policies, a new vacation home tax, higher taxes for hospitals, a 25-cent charge per trip on ride-sharing services like Uber and a 45-cent-per-pack cigarette tax increase.
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