State Budget Deficit Dropping
The state’s books for fiscal year 2015 won’t close until late September but the bottom line is looking a little better, say officials.
According to the state comptroller and the Office of Policy and Management, Connecticut could end fiscal year 2015 with a $70.9 million deficit—an improvement of $44.8 million compared with last month’s estimate.
Overall tax revenue is relatively flat—receipts higher than budgeted in the corporate tax and lower than anticipated in the personal income tax.
Cuts in corporate tax credits approved by the legislature in June and made retroactive to Jan. 1 will produce 3.8% higher payments than last year, says the comptroller.
While General Fund spending is expected to come in under budget by about $70 million, overruns within state government are likely to exceed estimates by $73 million.
“The issue is still about spending and overspending,” said CBIA economist Pete Gioia. “The state still needs to real spending reforms to address these continuous shortfall issues.”
Tax receipts through this month will continue to count toward the fiscal year 2015 balance sheet.
If a deficit remains, the state will use dollars from the Rainy Day Fund to close the gap.
EXPLORE BY CATEGORY
Stay Connected with CBIA News Digests
The latest news and information delivered directly to your inbox.