STATE OF CONNECTICUT
THE STATE COMPTROLLER
WYMAN SAYS DEFICIT GROWS MODESTLY TO $942 MILLION
Year-End Spending Adjustments Offset Small Revenue Improvement
|Contact: Steve Jensen|
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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