STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN PROJECTS BUDGET DEFICIT OF $643.2 MILLION|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today said that plummeting revenue from the income tax has increased the state's projected year-end budget deficit to $643.2 million.
Wyman said the deficit grew by $400 million over the last month. A sharp drop in income tax collections - especially from capital gains payments associated with the financial markets - was the main reason for the decline.
"More than 80 percent of this revenue drop is directly tied to the income tax," Wyman said. "The erratic performance of the stock market is simply not delivering the revenues that created the huge surpluses of recent years. Like the residents of this state, it is time for government to adjust to this new reality and live within its means."
Wyman said the income tax was originally projected to bring in about 2 percent more than it did last year. But it now appears that income tax collections will actually decline by nearly 9 percent.
At the same time, revenues from the sales tax, payroll withholding and payments based on corporate profits also continue to be weak.
Overspending by state agencies, meanwhile, totals about $102 million for the fiscal year. About 70 percent of that spending was for health care costs incurred by the Department of Social Services.
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 - email@example.com
Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.
For Immediate Release
May 1, 2002
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