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Connecticut Budget Deficit Rises to $60 Million

Tax revenues are down, and less money is being made from the state's casinos.

 

In the first four months of the fiscal year, Connecticut’s deficit is up to $60.1 million, according to the Office of Policy and Management. 

A letter published by CT News Junkie from Ben Barnes, secretary of the Office of Policy, stated corporate taxes are down $15 million. Casino revenues are also off by $25 million.

At the start of October, the budget deficit was projected at less than half the current deficit. Comptroller Kevin Lembo forecast $26.9 million deficit for the fiscal year, citing a decline in sales tax and casino revenues.

“The slow national economic recovery continues to influence Connecticut’s state budget in Fiscal Year 2013,” Lembo said in a written statement. “Despite weak sales tax revenues, the state could still reach its revenue targets due to a positive income tax trend and other factors. Our deficit projection is driven by the spending side, where the rising Medicaid caseload continues to grow and will likely run $100 million over budget.” 

Connecticut ended the previous fiscal year $143.6 million in the red. The deficit was paid off by using money in reserves.

SuperDave October 25, 2012 at 12:19 PM
So Malloy overtaxes, people spend less, businesses reign in hiring and spending as well, and this surprises people? Malloy is the issue. Everyone of note predicted there was no way the budget would balance. And now everyday the deficit gets worse. Perepare for more tax increases! Recall my prediction you may have seen in my many comments: Someday all our houses will be worth $50K and our yearly taxes will be $50K.

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