By Edward Krudy
NEW YORK (Reuters) - Connecticut will cancel pay raises for managers at state agencies after the latest projections suggest the state's fiscal situation may be much worse than previously thought, top officials said on Monday.
The canceled pay raises are an early indication of the harm done by the state's fiscal crisis. Many more cuts are expected this year as officials struggle with a budget deficit that could be as high as $900 million in the coming fiscal year.
"We have a responsibility to the taxpayers of Connecticut not to move forward with managerial raises at a time when so many state programs will see reductions and while many state jobs are likely to be eliminated," wrote Ben Barnes, secretary of the Office of Policy and Management.
The letter was co-signed by Brian Durand, chief of staff to Democratic Governor Dannel Malloy.
A report last week from the Office of Fiscal Management said the deficit could be as high as $900 million in the next fiscal year, which begins on July 1. An earlier estimate from Barnes' office put the deficit at $570 million.
Most of the raises, which have already been postponed twice, would have been awarded next week on March 4. They will be suspended indefinitely.