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Nonpartisan Fiscal Office: Budget Deficit Still $163 Million

March 27, 2018 By Staff
Nonpartisan Fiscal Office: Budget Deficit Still $163 Million

A month after the Office of Fiscal Analysis projected a $163 million deficit for fiscal year (FY) 2018, they're still projecting a $163 million deficit for FY 2018.

Another month, another projection for a $163 million deficit in Connecticut’s fiscal year (FY) 2018 budget.

That’s according to the Office of Fiscal Analysis (OFA)’s latest report.

Their summary:

Positive year-to-date variance in the Withholding portion of Income Tax is recognized in the amount of $53 million. However, Corporation Tax collections in March (when Q1 2018 payments were due) missed its target by $47 million. The net positive revenue variance of $6 million is almost entirely offset by increased spending projections, primarily a $3.9 million increase in the Adjudicated Claims line item.

Uncertainty remains over whether or not an estimated $30.3 million in SEBAC labor savings in other appropriated funds will be allocated to the General Fund in FY 18. If a mechanism is not enacted to transmit these FY 18 savings to the General Fund in accordance with the budget, then the estimated $162.6 million General Fund deficit indicated above would increase to $192.9 million.

The projected deficit is just short of one percent (0.87 percent) of Connecticut’s projected expenditures for FY 2018, which ends on September 30, 2018.

This article is very similar to one Reclaim Connecticut wrote a month ago, when OFA also projected a $163 million deficit for FY 2018.

The state’s budget deficit for fiscal year (FY) 2018 – ending on September 30, 2018 – is projected to be $162.7 million, or almost one percent of what the state originally planned to spend in FY 2018.

A month has gone by, and the state has not chipped away at a very large deficit.