Chip, Chip Away: Malloy’s $23M Surplus Becomes a $65M DeficitMarch 1, 2017
A new budget estimate from the nonpartisan Office of Fiscal Analysis (OFA) is an $88 million difference from the rosier projections of Gov. Malloy's office.
On Monday, the nonpartisan Office of Fiscal Analysis (OFA), part of the Connecticut legislature, estimated Connecticut will end fiscal year (FY) 2017 $65.2 million in the red.
This is $88 million off from the estimates of Gov. Dan Malloy (D-Conn.)’s budget director, who said last month that Connecticut would have a $23 million surplus.
Reclaim Connecticut pointed out then that Republicans had warned Malloy’s surplus relied on one-time revenue.
OFA’s analysis notes that, indeed, $111 million in settlement money represents “positive adjustments” to the state’s budget, but is more than offset by lower-than-expected receipts of income taxes and sales taxes.
This is not the first time an alternate estimate has chipped away at Malloy’s projected surplus. Also last month, Comptroller Kevin Lembo (D-Conn.) warned that Connecticut’s surplus was $9 million, and not $23 million.
If OFA is to believed, Connecticut is actually in deficit this year, not in surplus.
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