STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN PROJECTS BUDGET DEFICIT OF $390 MILLION|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today projected that the state will end the 2003 fiscal year with a budget deficit of $390 million.
Revenue from all the major tax categories - especially the income and corporation taxes - continue to decline, Wyman said. Weak job growth has eroded revenue from the payroll-withholding portion of the income tax, she said, and taxes on capital gains related to stock market transactions also showed little improvement.
"The job picture in Connecticut has been very erratic month-to-month," Wyman said. "And with the continuing poor performance of the financial markets, I am not confident of a turnaround in income tax revenue anytime soon."
Wyman's deficit estimate of $390 million is about $60 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 corporations taxes.
Wyman's estimate is about $29 million higher than last month's projection, mainly due to budget overruns related to escalating health care expenses in several state agencies. The Department of Social Services, for example, is expecting a $50 million shortfall in its Medicaid account by years' end, 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 - email@example.com
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For Immediate Release
October 1, 2002
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