STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN SEES BUDGET DEFICIT
RISING TO $84.8 MILLION
Corporate tax revenues down, but state economy improving overall
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today said the estimated 2004 state budget deficit has risen to $84.8 million, due mainly to lagging revenues from the tax on corporate profits.
The deficit on the $13.5 billion budget grew by about $33 million in the last month, Wyman said. About $24 million of that hike is attributed to declining revenues and the remaining $9 million to an increase in expected spending.
December was the fifth straight month that the corporation tax brought in less revenue than was originally projected, Wyman said. Some of that decline may be attributed to taxpayers' being unaware of some of the tax increases enacted last year. Those increases were designed to bring in about $90 million in additional revenue.
"So far the corporate tax receipts have been substantially lower than estimated," Wyman said. "If this trend continues, the total shortfall on the corporation tax could exceed $75 million by the end of the fiscal year," on June 30.
The loss of corporation tax revenue was partially offset by a $26 million rise in other revenues, Wyman said, including $22 million in federal revenues for the Department of Children and Families.
Wyman said that the state's overall economy appears to be rebounding. Connecticut has gained about 4,200 jobs since the start of the 2004 fiscal year last July 1. If that growth continues, overall revenues could exceed estimates in the final months of the fiscal year.
Wyman's deficit projection of $84.8 million matches the latest estimate by the Governor's budget office, the Office of Policy and Management.
*NOTE: Comptroller Wyman is unavailable for comment today.
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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