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 $602.1 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 $602.1 million.

Wyman's deficit estimate rose by $119.9 million over last month's. Most of the increase is due to continued weak collections of the income tax stemming from an extraordinary rate of job losses.

Connecticut has lost nearly 13,000 jobs during the first half of the fiscal year, which ends June 30. More than 10,000 of those jobs were lost in the last three months. The employment figures are based on data gathered through Dec. 31, and do not include the layoff of about 2,800 state workers in January.

"I am especially concerned about the accelerating rate of job losses in the second quarter," Wyman said. "It now appears that overall income tax collections will decline by four percent compared to last year."

Wyman said she expects the income tax to bring in about $4.1 billion this fiscal year, or about $456 million less than original estimates. In addition to the reduced collections of payroll-withholding taxes, the capital gains portion of the income tax also is performing poorly.

Wyman said sales tax revenue also was lower than expected in December, due to weak retail sales. Collections of taxes on cigarettes showed a modest increase, as did taxes paid by corporations based on profits.

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
February 3, 2003

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