As Wait, What? readers have been reading for months, the Malloy administration has been painting a rosy picture of Connecticut’s state budget situation thanks to the unparalleled use of budget gimmicks and inflated revenue estimates.
Readers have been repeatedly informed that Malloy’s irresponsible approach to budgeting would leave Connecticut with a $1 billion state budget deficit in each of the three years following the November election.
Based on the latest revenue projects, yesterday’s Wait, What? post increased that projected budget deficit to at least $1.2 billion and this afternoon, the Malloy administration, along with the General Assembly’s Office of Fiscal Analysis, announced that the person who is elected to be governor in November will face a budget deficit of close to “$1.4 billion or 7.4 percent of annual operating costs.”
As Keith Phaneuf is reporting in at CT Mirror,
Plummeting tax receipts have ripped a nearly $300 million hole in the next state budget, leaving legislators and Gov. Dannel P. Malloy just one week to fix it, according to a new report Wednesday from fiscal analysts.
Meanwhile, proposed new spending for pre-kindergarten programs, the elderly and working poor, public colleges and universities, and for cities and towns hang in the balance – as do tax breaks for teachers and consumers and the potential expansion of legalized gambling in Connecticut.
New projections from the administration and the legislature’s nonpartisan Office of Fiscal Analysis also worsened the deficit in the first budget after the November election, pushing it close to $1.4 billion or 7.4 percent of annual operating costs.
Meanwhile, the $500 million-plus surplus Malloy touted just two months ago when he proposed a tax rebate has disintegrated to $43 million.
Combined with the $271 million already in the emergency reserve, that surplus leaves the Democratic governor with a fiscal cushion of less than 2 percent against a post-election deficit more than four times its size as he enters his re-election campaign.
You can read the latest at: http://ctmirror.org/tax-receipts-plunge-next-ct-budget-300m-in-deficit/
Also, in the coming days, we’ll continue to explore the growing impact that three years of dishonest budgeting has had on the state of Connecticut, vital state programs and services, and the state’s citizens.