State Budget Could Finish Deeper in Red

A slowly recovering Connecticut economy continues to yield lower-than-anticipated state tax revenue, tilting the state budget farther out of balance, according to state officials.

Consensus revenue figures from the Office of Policy and Management and the nonpartisan Office of Fiscal Analysis indicated that the state’s $20.14 billion budget for this fiscal year is now heading toward a $284.6 million deficit.  Revenues have dipped by $112.8 million and spending has increased by $47.4 million.

OPM Secretary Benjamin Barnes  vowed, however, that “we remain committed to balancing the budget.” He said the adminstration will submit a deficit-mitigating plan to the legislature that will include $222 million diverted from an account set aside to pay down state borrowing to cover a deficit in 2009.

Connecticut’s economy continues to struggle to create jobs, even as the state unemployment rate has fallen to its lowest level in years. Job growth this year is about half a percent, and the state has managed to recover fewer than one-third of jobs lost during the recession.

For more information, contact CBIA’s Pete Gioia at 860.244.1945 or pete.gioia@cbia.com.