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Comptroller: State Deficit for Year Ending Sept. 30 is Already $224 Million

January 3, 2018 By Staff
Comptroller: State Deficit for Year Ending Sept. 30 is Already $224 Million

We're only three months into the new fiscal year, and the government already needs to deal with a nine-figure deficit.

Comptroller Kevin Lembo (D-Conn.) projected on Tuesday that Connecticut will face a $224 million deficit in the fiscal year ending September 30, confirming yet another new budget crisis for Gov. Dan Malloy (D-Conn.) and the legislature in the new year.

Lembo’s office wrote:

In a letter to Gov. Dannel P. Malloy, Lembo explained that his deficit projection is slightly higher than the most recent projection by the state Office of Policy and Management (OPM) due to a recently approved $1.5 million settlement between the state and the Town of Cheshire. Lembo also acknowledged factors that could change this projection, including an updated consensus revenue report due later this month and anticipated legislative action on the governor’s proposed deficit mitigation plan.

This is already nearly $50 million more than Malloy’s budget office projected in November, shortly after Malloy signed the fiscal year (FY) 2018 budget.

The $224 million gap is one Connecticut will have to close before September 30, according to the state’s balanced budget amendment to the constitution. According to recent reporting by The CT Mirror, Connecticut has “about $210 million in its Rainy Day Fund,” meaning that even emptying the reserves fund would not cover the projected deficit.

Malloy recently proposed a deficit mitigation plan with up to $170 million in new taxes.