STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN PROJECTS BUDGET DEFICIT OF $157.8 MILLION|
|Contact: Steve Jensen|
Despite signs of an improving economy, State Comptroller Nancy Wyman today projected the state will end the 2002 fiscal year with a budget deficit of $157.8 million.
Wyman said that there are positive economic indicators emerging in several major areas, including consumer spending, employment, housing and manufacturing.
"Unfortunately, these encouraging economic signs are not translating into revenue increases as quickly as expected," Wyman said.
Wyman said that tax receipts for January were sharply weaker than anticipated. The income tax - including both payroll withholdings and capital gains associated with the financial markets - brought in about $35 million less than expected. The sales tax produced about $10 million less than projected, and the corporation tax contributed about $20 million less.
Those revenue drops are partially offset by an expected revenue increase of about $40.5 million due to this week's hike in the cigarette tax. Higher spending by state agencies, resulting mainly from rising medical costs, implementation of wage settlements, overtime pay and higher costs related to serving special-needs clients, added another $13.7 million to the deficit since last month, Wyman said.
Wyman's deficit estimate - an increase of about $38 million over last month's projection - takes into account the expected extra cigarette tax revenue as well as spending-reduction plans announced by the Governor that total another $157.3 million.
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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