Jul 28, 2014
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CT Budget Deficit Rises to $60 Million

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

CT Budget Deficit Rises to $60 Million

 

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.

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