Connecticut governor calls lawmakers to special session on budget hole

[December 05, 2015]  NEW YORK (Reuters) - Connecticut Governor Dannel Malloy has called a special session of the state's legislature to tackle a budget shortfall that, according to one estimate, could be over $250 million this fiscal year.

"After over a month of bipartisan dialogue with a healthy exchange of ideas, I believe there is more that unites Democratic and Republican leaders than divides us," Malloy said in a statement on Friday.

The budget deficit in the fiscal year ending June 30, 2016 will likely be $254.4 million, the state's non-partisan Office of Fiscal Analysis said in a report on Nov. 13. Connecticut's annual budget is around $20 billion.

Malloy called in October for bipartisan budget talks after officials said there would be a shortfall of at least $120 million this fiscal year. Malloy announced plans to lay off 500 state workers and defer raises for 1,600 managers.

Malloy attributed the revenue shortfall to lower capital gains tax collections due to a volatile stock market.

The special session is scheduled for 10 a.m. local time (1500 GMT) on Tuesday, Dec. 8.

(Reporting by Edward Krudy; Editing by Bill Rigby)

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