STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN SAYS DEFICIT INCREASES SLIGHTLY TO $67.8 MILLION|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today said the state's projected budget deficit has grown slightly to $67.8 million - about $100,000 higher than last month.
While collections of the income tax continue to decline, Wyman said, revenue from the tax that corporations pay on profits has begun to show some improvement.
"After nine months of double-digit declines in the corporation tax, it is a positive sign that profits are at least beginning to rebound slightly," Wyman said. "The improvement in the corporation tax last month basically offset the drop in the income tax."
The payroll-withholding portion of the income tax has been in decline since February due to job losses. Connecticut has seen four consecutive months of job losses totaling 7,200 payroll positions - a net drop of 600 jobs for the fiscal year. At the same point last year, the state had added about 10,000 jobs.
Existing home sales in Connecticut continue to be weak, falling by 24 percent in the first quarter of 2008 to their lowest level in more than a decade.
On the spending side, the governor's budget office is estimating net deficiencies of $30.7 million in the overall budget of $18 billion. Those deficiencies include $18.5 million in the Department of Corrections, $10.9 million in the University of Connecticut Health Center and $1.3 million in Workers' Compensation Claims.
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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