The Budget Battle Begins To Take Shape
Tax collections have improved and pushed Connecticut’s budget surplus to $4 billion, but the state budget still relies heavily on federal funding and without it the state would end up running a “sizeable operating deficit.”
The Office of Policy and Management told state Comptroller Natalie Braswell Wednesday that if not for the use of the one-time federal funds of $560 million this year and $1.2 billion next year, Connecticut would be running a budget deficit.
“While the Governor’s recommended budget as presented to the legislature on February 9th eliminates reliance on this source to balance the General Fund budget in FY 2022 and reduces it by $250 million in FY 2023, to $944.9 million, the state will need to experience revenue growth this biennium to prevent a budgetary gap in FY 2024 and beyond,” Office of Policy and Management Secretary Jeff Beckham wrote in his monthly letter.
The predictions come at the same time as the Democratic-majority in the legislature is struggling to get Gov. Ned Lamont to consider including a child tax credit as part of the revenue package.
Read more: https://ctnewsjunkie.com/2022/04/21/the-budget-battle-begins-to-take-shape/