Governor Malloy and Connecticut state government will face a projected budget deficit or revenue shortfall of $1.1 billion next year.
Later today, Malloy’s budget office and the General Assembly’s Office of Fiscal Analysis will be submitting their mandated annual fiscal projects about revenue and spending.
The Malloy Administration’s $60 million projected deficit in the days leading up to the election has become a $365 million deficit.
And the projected deficit for next year is now set at $1.1 billion.
As Keith Phaneuf of the CT Mirror writes, “since the governor and legislature must balance the current books and craft a new two-year spending plan this spring, that means they must wipe nearly $2.5 billion in real and projected red ink off the state’s books before the 2013 session ends next June.”
The massive fiscal problem comes after the Governor and Legislature adopted $1.5 billion in new taxes last year, while making significant budget cuts and achieving state employee concessions.
Phaneuf goes on to note, “The administration’s two-year estimate exceeds $1.9 billion in red ink. Just nine months earlier, members of the administration said the state could look forward to surpluses totaling more than $1.1 billion over the same two-year period — a $3 billion shift for the worse.”
Earlier this year, the Malloy Administration projected that the State of Connecticut would have a “$226 million surplus in 2013-14 and a $942 million in the final budget year of Malloy’s term.”
Here are the latest links to news stories about the projected deficit: