STAMFORD, Conn. (WCBS 880) – As Connecticut’s Gov.-Elect Dan Malloy prepares to swear into oath on Jan. 5, the thing on everyone’s mind is his biggest challenge, the budget.

LISTEN: WCBS 880’s Fran Schneidau reports

Malloy said he is crafting a two-year budget to deal with a $3.5 billion deficit. That budget, he said, will be transparent and gimmick free.

“I was honest in the campaign. I’m going to be honest in preparing people and I’m going to present an honest and balanced budget that complies with gap finance rules, generally accepted accounting principles which is something that no other governor in the state of Connecticut has ever done,” Malloy said.

To make up for the deficit, Malloy’s budget will likely call for tax hikes and sacrifices from every Connecticut resident.

“I can’t cut 3.5 billion in spending, nor can I raise taxes by 3.5 billion. I’m gonna have to ask everybody to sacrifice to some extent to get us through the next two years,” he said.

He vows the only untouchables will be in a safety net that includes nursing homes and care for the mentally ill.

“The safety net is off the table. Everything else is on the table,” he said.

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