Lembo Estimates That Connecticut Is On Track To End the Year With A $244.6M Deficit
HARTFORD, CT — A week before the state of a new legislative session, state Comptroller Kevin Lembo estimated the state budget adopted just three months ago is $244.6 million in the red.
In his monthly letter to Gov. Dannel P. Malloy, Lembo said he still believes the deficit is larger than the governor’s administration estimates because of the amount of money the state will have to pay to settle legal claims.
The deficit has also grown over the last month in large part due to reduced revenue available to the General Fund, according to Lembo.
The state experienced an increase in estimate income tax revenue due to changes in federal tax law and the one-time repatriation of hedge fund profits, but those windfalls are required to be transferred to the Rainy Day Fund. After accounting for that, overall General Fund revenue is down by approximately $16 million – and savings targets on the spending side may be challenging, Lembo said.
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