STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN SAYS DEFICIT JUMPS TO $343 MILLION|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today said the state's estimated 2009 budget deficit has risen to $343 million, as collections of the income tax and sales tax continue to decline sharply.
"Deteriorating economic conditions are becoming more apparent in revenue collections across most major tax groups," Wyman said in her monthly report to the Governor. "Initial retail sales figures for the holiday season are dismal as are other major sectors of the economy."
Collections of the income tax have dropped nearly 12 percent from last year, and the sales tax by about 16 percent. The state has lost 12,500 jobs this fiscal year, and job losses are expected to continue for the remainder of the year.
Wyman's deficit projection has risen by $5 million since last month and is about $150 million higher than that by the governor's budget office. The Comptroller said her February projection will likely worsen significantly, based on expectations of very weak quarterly estimated income tax payments from investors that are due on Jan. 15.
Wyman's projection does not include $193 million in deficit-mitigation steps proposed last month by the Governor that have yet to be acted upon by the General Assembly. If that plan is fully implemented, the Comptroller's deficit projection would drop to $150 million. Wyman noted, however, that nearly four out of every five dollars in the Governor's plan are from one-time revenue sources or transfers.
"This is not the type of reform required to rebalance the state's budget for the long-term," she said in her report.
The $343 million deficit is based on an overall budget of $18.4 billion for the 2009 fiscal year that ends June 30.
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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