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 $827.8 MILLION
Contact: Steve Jensen
860-702-3308

State Comptroller Nancy Wyman today said that the state's 2002 budget deficit has grown to $827.8 million, due to continued erosion of several major tax categories.

Weak performance of the income, sales and corporate taxes increased the deficit by about $74 million from last month.

"There are some positive economic signs emerging in our state's economy right now, but they are not translating into higher revenues overall," Wyman said.

Combined, the income, sales and corporate taxes last month brought in $70 million less than what was anticipated.

The income tax was originally targeted to grow by 2 percent over last fiscal year, but is now expected to decline by more than 9 percent, or about $540 million under budget. Most of that drop is attributed to sharply lower capital gains payments to the state.

Declines in the major tax categories were partially offset by strong collections from other revenue sources, including taxes on cigarettes and alcohol. Other areas showing solid growth include receipts from the two gaming casinos, the state lottery and real estate conveyance fees associated with housing sales.

The state's housing market remains strong, Wyman said, with permits for new construction up slightly and existing home sales rising by about 10 percent in the first quarter of 2002.

Retail sales recorded from March through May grew by 3.3 percent over the same period last year. The state's unemployment rate also remains at a low 3.7 percent.

The 2002 fiscal year ended June 30; Wyman will officially close the state's books and issue her final deficit figure on Sept. 2.

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
July 1, 2002

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