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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