STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN PROJECTS BUDGET DEFICIT OF $753.7 MILLION|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today projected that the state will end the 2002 fiscal year with a budget deficit of $753.7 million, and said the General Assembly and the Governor should take quick action to ensure the state can pay its bills on time.
While tax revenues continue to plummet, Wyman said, a number of state agencies have overspent their budget allotments for the fiscal year ending June 30. Those agencies may not be able to make timely payments to service providers and organizations if the legislature does not pass a "deficiency bill" to cover the overspending.
"If these deficiencies are not funded soon, these agencies will not be able to make payments by the end of the fiscal year," Wyman said. "I urge the legislature and the Governor to act quickly so the state can pay its bills on time."
Overspending by state agencies totals nearly $110 million for the year. About $70 million of the overrun is due to costs incurred by the Department of Social Services. The bulk of the deficiencies result from rising medical costs, overtime pay, implementation of wage settlements and costs incurred to serve special-needs clients.
Wyman's deficit estimate is up $110.5 million from last month's. Lower than anticipated sales tax receipts and higher than expected tax refund payments by the state account for about two-thirds of the increase. The sales tax was down by $35 million this month and refunds of taxes were $37.5 million above last month's estimate.
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 - firstname.lastname@example.org
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