WYMAN SAYS DEFICIT GROWS MODESTLY TO $942 MILLION Year-End Spending Adjustments Offset Small Revenue Improvement
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 SAYS DEFICIT GROWS MODESTLY TO $942 MILLION
Year-End Spending Adjustments Offset Small Revenue Improvement
Contact: Steve Jensen
860-702-3308/3301
Steven.Jensen@po.state.ct.us

State Comptroller Nancy Wyman today said the 2009 budget deficit has worsened slightly to $942 million, as end-of-year spending adjustments offset a small improvement in revenue.

The $31 million increase in the deficit since last month was mainly due to a spending increase of $55.5 million that offset revenue growth of $24.5 million. The spending hike was tied to the use of anticipated savings by certain state agencies to cover other agencies' budget shortfalls.

The $24.5 million in revenue growth was due to an increase in federal grants receipts and a modest improvement in collections of the tax that corporations pay on their profits.

"It is encouraging to finally see some signs of a rebound in the business community," Wyman said, "but the most critical factor in our state's economic recovery will be a growth in jobs."

Connecticut has lost approximately 70,000 jobs since May 2008, producing a decline in income tax receipts that exceeds $1 billion. The sales tax will bring in about $427 million less than was originally estimated.

Although the 2009 fiscal year ended June 30, the state continues to collect certain tax accruals - including the corporation tax - through July 31. A final deficit figure will be issued September 1, when Wyman will close the books on the year.

Wyman's deficit projection includes about $550 million of deficit-mitigation steps and state employee labor concessions approved by the legislature.

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For Immediate Release
August 3, 2009

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