Eyeing Deficit, Connecticut Announces $170 Million in Spending Cuts Less than two years after Gov. Dannel P. Malloy pushed through a record tax increase for Connecticut as part of a package to reduce one of the nation's worst budget deficits, the state on Wednesday announced $170 million in spending reductions as the first step to address what officials described as a large and growing long-term budget shortfall. The reductions were billed as the first part of a process to close a current shortfall, put at $365 million. But in a somber briefing to legislators on Tuesday, the state's budget director, Benjamin Barnes, warning of "extraordinarily difficult decisions to reduce spending," said Connecticut also faced an estimated shortfall of $1.1 billion in 2013-14 that would have to be addressed, beginning next year. The cuts include nearly $70 million to health care programs and social service agencies, along with $25 million to public colleges and universities. Programs facing reductions included AIDS services, children's health programs, food stamps, funds for magnet schools, housing and homeless services, and services for elderly and disabled residents. Mr. Malloy's spokesman, Roy Occhiogrosso, largely blamed the sluggish economic recovery and increasing costs for programs like Medicaid. And he said the disappointing budget picture reflected the state's historic failures in managing its finances. "The larger point is that this governor inherited an enormous mess," Mr. Occhiogrosso said in a budget briefing on Wednesday. It took 20 years to dig that hole. It will take us more than 20 months to dig our way out of it. But Republicans said Mr. Malloy, a Democrat who was elected governor two years ago, needed to stop blaming others. "He passed a budget which he said was balanced and which he now owns," the Senate minority leader, John P. McKinney, said. This is finally a signal that the governor understands that we can't tax our way out of this recession. All the gimmicks have been used up, and our credit card is maxed out. The State Office of Policy and Management on Wednesday released a list of $170 million in spending reductions that fell under the governor's powers to rescind appropriations by up to 5 percent of any line item and 3 percent of any fund without seeking legislative approval. Next month, the governor is expected to announce about $200 million more in proposed cuts that would have to be approved by the General Assembly to address the current deficit. And in his new budget, to be unveiled in February, he is expected to announce another round of more severe and painful long-term cuts to balance the budget going forward. "Many of these cuts are very difficult to make, especially now when so many residents continue to struggle in a tough economy," Mr. Barnes said in a statement. But as painful as they are, cuts are necessary to keep this year's budget in balance. State government needs to live within its means. Mr. Occhiogrosso said that Mr. Malloy had inherited a $3.6 billion deficit and that the governor's package of tax increases, spending cuts and union concessions had left the state in a much stronger position than when he took office. He said the governor was committed to addressing the deficit without further tax increases, the most recent of which affected income, corporations and an array of purchases and services. "I think at this point there's very little that's not on the table other than a tax increase," he said. Mr. Occhiogrosso expressed disappointment that the state's budget issues remained so daunting. Still, he said, Connecticut's budget problems were no different from those in other states, including many of its neighbors. But Mr. McKinney, of Fairfield, said Mr. Malloy had limited options after agreeing to forgo layoffs for four years for anyone hired before July 2011. And he said Democrats had shown no inclination to fundamentally overhaul government. He said that despite the governor's stated intention to avoid tax increases, he expected a contentious legislative session, with both houses controlled by Democrats. "I don't think Democrats in the legislature are willing to solve the problem without tax increases," Mr. McKinney said. And I'm even less convinced that the Democrats are willing to look at a major transformation of how we deliver goods and services as a state.