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 MAJOR REVENUES CLIMBING BUT $45.3 MILLION
DEFICIT REMAINS DUE TO MISSED SAVINGS TARGETS
Contact: Steve Jensen
860-702-3308/3301
Steven.Jensen@po.state.ct.us

State Comptroller Nancy Wyman today said that Connecticut's slowly-improving economy is generating increased tax revenues, but the failure of some state agencies to meet savings targets has created a $45.3 million budget deficit.

Driven by improved receipts of the state's two largest tax categories - the income and sales taxes - overall estimated revenues have exceeded expectations by $198 million since the 2011 fiscal year began July 1, Wyman said. Those receipts are mainly due to the state gaining about 8,000 jobs since January.

"The positive news is that we are finally seeing some solid revenue growth that is directly tied to the recent upswing in jobs," Wyman said. "But those gains are unfortunately being negated by the inability of some agencies to achieve the savings targets that were built into the budget."

Most notably, Wyman said, the Department of Social Services is currently posting a deficiency of $140 million. Statewide agency deficiencies total $171.2 million.

Those deficiencies are mitigating the gains in revenues and other positive economic signs, including a resurgence in the state housing market, where new home sales jumped 30 percent in the fiscal quarter that ended last June. Nationally, retail sales for August were up 3.6 percent over last year and the financial markets have posted gains over the past year.

The $45.3 million deficit is based on a $19.2 billion budget for the 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 - osc.opinions@po.state.ct.us

Learn more about the Connecticut Comptroller's Office by calling up our Internet Home Page, at the link below.

For Immediate Release
October 1, 2010

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