Seal of the  State of Connecticut, Office of the State Comptroller

STATE OF CONNECTICUT

NANCY WYMAN
COMPTROLLER

OFFICE OF THE STATE COMPTROLLER
55 ELM STREET
HARTFORD, CONNECTICUT 06106-1775

MARK OJAKIAN
DEPUTY COMPTROLLER
WYMAN PROJECTS BUDGET DEFICIT OF $242.9 MILLION
Contact: Steve Jensen
860-702-3308

State Comptroller Nancy Wyman today said that anemic tax revenues and higher state spending have increased the projected year-end budget deficit to $242.9 million

Wyman said the $85 million jump in her monthly estimate came despite signs that the state economy is on the upswing.

"While an economic recovery may be underway, its impact on state tax revenues has been muted," Wyman said in her monthly report to the Governor. "And as revenues continue to fall, government continues to spend above budget projections."

February income tax receipts were $20.6 million below expectations, Wyman said. The payroll-withholding portion of the income tax dropped by seven percent in the third quarter of the fiscal year, despite the addition of nearly 4,000 jobs in Connecticut since Jan. 1. The sales tax also brought in about $14 million less than anticipated.

Overspending by state agencies, meanwhile, climbed by more than $20 million - nearly all of which was directed toward Medicaid payments. For the year, overspending has totaled approximately $102 million. About 70 percent of that spending was for health care costs incurred by the Department of Social Services.

Preliminary projections for revenues in April - including crucial final estimated payments of the capital gains tax - currently show that revenues may drop by another 10 percent, Wyman said.

The State Comptroller appreciates input on this and other issues from residents of the state. Please feel free to contact her office by phone - (860) 702-3300; mail - OSC, 55 Elm Street, Hartford, CT 06106; or, via E-mail - osc.opinions@po.state.ct.us

Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.

For Immediate Release
April 1, 2002

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