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 $392 MILLION
Contact: Steve Jensen
860-702-3308

State Comptroller Nancy Wyman today projected that the state will end the 2003 fiscal year with a budget deficit of $392 million.

Even with recent improvement in revenues from the sales tax and corporation tax, Wyman said, weak job growth and poor stock market performance have kept overall revenues flat.

"Given the stagnant employment situation and erratic financial markets, I am projecting income tax growth of less than one-percent," Wyman said in her monthly report to the Governor. "Prospects for higher income tax payments from capital gains also remain dim."

Wyman's deficit estimate of $392 million is about $61 million higher than that made recently by the Governor's budget office. The difference is due mainly to Wyman's less optimistic projections on revenues produced by the income and corporation taxes.

Wyman also is not confident that the state will achieve nearly $252 million in savings built into the budget. Her deficit estimate projects savings of about $237 million.

Wyman again reminded the Governor that because the deficit exceeds one-percent of the total state budget, he is required to submit a deficit-mitigation plan to the legislature. Wyman said the Governor should have submitted his plan by Oct. 3 - 30 days after the deficit reached the one-percent threshold - but has yet to do so.

"Since my September report, the deficit estimate has risen but no plan to deal with it has been offered," 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
November 1, 2002

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