STATE OF CONNECTICUT
THE STATE COMPTROLLER
|WYMAN SAYS DEFICIT IMPROVES SLIGHTLY TO $513.3 MILLION|
|Contact: Steve Jensen|
State Comptroller Nancy Wyman today projected the state will end the 2010 fiscal year with a budget deficit of $513.3 million - a modest improvement since last month.
The $36.2 million improvement in the deficit was due to a net increase in revenues of $9.4 million and net spending reductions of $26.8 million, Wyman said.
The revenue jump was mainly attributed to $58.4 million tied to the Treasurer's sale of unclaimed property escheated to the state. That offset a $39 million drop in receipts of the sales tax and a $10 million drop in collection of the tax that corporations pay on profits.
Collections of the income tax are expected to end the year about $212 million below original estimates, driven by the loss of more than 88,000 jobs in Connecticut since the recession began in March 2008. Those job losses are wiping out any revenue gain associated with the recent tax rate hike for upper-income residents.
Wyman noted that the payroll tax accounts for about 65 percent of the state's total income tax receipts, which this year are expected to be about $6.4 billion.
"Until the state stops losing jobs and the payroll taxes that go with them, this deficit will continue to present difficult challenges for policymakers," Wyman said.
The $513.3 million deficit is based on a budget of $18.6 billion for the fiscal year that ends June 30, 2010. The Governor's budget office is currently projecting a deficit of $327.9 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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For Immediate Release
January 4, 2010
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