New figures showing state deficit has grown
New state revenue estimates, released by the governor's and legislature's budget offices, show the current fiscal year is now projected to end June 30 with a $256 million deficit.
Hartford — Connecticut’s state budget deficit problems got a little worse on Friday night, days before the General Assembly is scheduled to adjourn.
New state revenue estimates, released by the governor’s and legislature’s budget offices, show the current fiscal year is now projected to end June 30 with a $256 million deficit.
That’s up from the $141.4 million deficit estimate released last week. That figure had come as a surprise because lawmakers just passed a bipartisan plan on March 29 to erase a $220 million budget deficit.
Meanwhile, the projected deficit for next fiscal year, which legislators and Gov. Dannel P. Malloy are struggling to fix before Wednesday’s legislative adjournment deadline, has grown from $ 922 million to $ 960 million.
“The problem just got a little harder,” said Ben Barnes, Malloy’s budget secretary, who blamed much of the problem on weakness in estimated personal income tax payments.
On Friday, budget staffs for legislative Democrats and Malloy, who’ve been at odds for weeks over how to
“If anyone needed any additional evidence that significant structural changes are needed in order to address the ongoing, ‘drip, drip, drip’ of deteriorating budget numbers, I don’t know what it is,” THEMIS KLARIDES, R-DERBY HOUSE MINORITY LEADER
solve the deficit problems, began meeting to try to craft a potential Democratic budget for a vote before Wednesday. The staffs and lawmakers were expected to work over the weekend on a possible compromise and Democratic leaders suggested a vote might be held Monday or Tuesday.
It’s questionable whether the minority Republicans in the legislature, who’ve offered their own budget, will sign on to any final agreement.
But given the new revenue projections, it’s now unclear whether a deal can be reached before Wednesday. Malloy has already said he is willing to call lawmakers back to the state Capitol for a special session and vote on a plan before the fiscal year ends.
“If anyone needed any additional evidence that significant structural changes are needed in order to address the ongoing, ‘drip, drip, drip’ of deteriorating budget numbers, I don’t know what it is,” said House Minority Leader Themis Klarides, R- Derby, who contends the GOP’s new budget would make such necessary changes.
Senate Minority Leader Len Fasano, R- North Branford, questioned the new revenue estimates, saying the problem is likely $ 40 million worse. He criticized the two budget offices for projecting “miscellaneous revenue” will be $40 million next fiscal year, a figure he said counts on money from legal settlements the state does not have yet.
“This consensus revenue is counting on money the state simply doesn’t have,” he said. “At best, this is a one- time revenue grab. At worst, this is an empty pot and a complete distraction from the real size of the problem we face.”