STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN SAYS BUDGET DEFICIT GROWS TO $515 MILLION|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today said the state's 2010 budget deficit has worsened slightly to $515 million - an increase of $1.7 million over the past month.
"While revenues are showing some signs of stabilizing, virtually every tax category is still down from where it was last year at this time," Wyman said.
Weak collection of the income tax due to job losses continues to be the main driver of the budget shortfall, Wyman said. Connecticut has lost more than 21,000 jobs since the fiscal began last July, and more than 94,000 jobs have been eliminated since the start of the recession in March 2008.
The income tax was targeted to grow by 3.8 percent this year, and bring in a total of $6.6 billion out of an $18.6 billion budget. But actual collections through December are down by 2.7 percent from last year.
The Comptroller's income tax estimate has for several months been about $200 million lower than that of the Governor's budget office. The latest report from the Governor's office, however, brought its projections to within $15 million of Wyman's estimate.
Sales tax revenue was expected to drop by 4.6 percent for the year, but receipts are actually off by 7.3 percent through December.
On the spending side, the Department of Social Services continues to show the largest deficiency among state agencies - $125 million out of the statewide total of $193.7 million. Most of the DSS shortfall is tied to budget-savings targets that have gone unmet.
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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For Immediate Release
February 1, 2010
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