STATE OF CONNECTICUT
THE STATE COMPTROLLER
Wyman Says Revenues Remain Flat As Crucial Tax-Filing Deadline Nears
Budget Shortfall Reduced by Recent Deficit-Mitigation Measures
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today said that while tax revenues remain flat, the projected 2010 budget deficit has been lowered to $371 million by the delay of a $100 million payment to the state pension fund and by about $47 million in Medicaid savings tied to the federal stimulus program.
The deficit had been hovering around $500 million since last October, driven by weak collections of nearly all major tax categories. The two largest shortfalls are in the income tax and sales tax, which are short of budget projections by $222.2 million and $90.6 million, respectively.
Delaying the $100 million pension payment and realizing the $47.4 million in Medicaid savings created by a change in the federal stimulus program were two elements of a deficit-mitigation plan implemented by the Governor last month.
Wyman said the final deficit figure will be greatly determined by how much income tax revenue is collected around the April 15 filing deadline, especially from upper-income earners who typically make quarterly estimated income tax payments.
"The weeks around the filing deadline are always a crucial time for revenues," Wyman said. "We normally take in about $1 billion during this time, but with the economic downturn it is very hard to predict what is going to happen this year."
Wyman's deficit estimate is based on a budget of $18.6 billion, and is about $14.5 million higher than the projection by the Governor's budget office.
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For Immediate Release
April 1, 2010
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