Post-election state budget deficit projected to be an incredible $1.4 billion

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.

  • buygoldandprosper

    Not to worry…Dan will just borrow more and, poof! No deficit!
    If anyone needed proof that Dan, the Clown Prince of Connecticut, and his cronies were engaged in on-the-job training for the last three years you have it now. And they have failed, miserably.
    Strap up, voters! There are going to be economic injuries!

    • jonpelto

      Oh wait, another great comment – economic injuries …. That there will be, for sure!

  • jschmidt2

    Sound like time for the $250 million bikeway along the merritt. Maybe they can make it a toll bikeway.
    The state has been really messed by Malloy.

    • jonpelto

      And today’s best comment goes to J!

  • Philip Stull

    There goes the vote buying of retired teachers, and I was counting on that tax break, not really :).

    • ReTired

      That tax break would maybe cover 2 bags of groceries!

  • speaking up

    Will the 2 additional State Charter schools approved by MallPryoyor be funded in the midst of this staggering deficit?
    I’d be very interested to know the justification, if so…

    • ReTired

      Justification will come in the form of additional gold lining in the pockets of corporate leaders! That was easy!