Connecticut's Budget Deficit up Another $50 Million

Officials for Gov. Dannel P. Malloy disagree with the state comptroller's deficit figures, but acknowledge they must now file a deficit mitigation plan with the legislature.

State Comptroller Kevin P. Lembo says the state's mushrooming budget deficit has jumped by another $50 million, bringing the official deficit figure today to $415 million.

However, because of a technical accounting glitch, Lembo's office has not factored in to that figure Gov. Dannel P. Malloy's recently ordered budget cuts, the Connecticut Mirror reports.

When those cuts are calculated, the website reports, it brings the actual deficit closer to $290 million.

Malloy's office, meanwhile, is questioning Lembo's deficit figures. Malloy officials say they don't believe the deficit is as high as Lembo is estimating, but offered no reason for why they don't agree with the comptrollers calculations, the Mirror reports.

Lembo said the state's budget woes are, in part, the result of higher than expect spending on Medicaid. Malloy has said he will file a deficit mitigation plan with the legislature before year's end. He has blamed the state's fiscal problems on the enduring and lingering impacts in Connecticut of the nation's economic downturn.

Richard Poulton December 04, 2012 at 06:14 PM
These people must think we are stupid. First is was this number, then it was that number, now we have another number. Ya right. Hundreds of thousends of dollars worth of cumputerized financial equipment and the problem was a technical problem. What, no one knows how to add or subtract anymore? Let me explain it to them - X amount coming in, that's all you spend. We have to live this way or the banks change a lot for bouncing checks, or take your home if you miss a mortgage payment. Idiots, all of them.
Luigi (the original) December 04, 2012 at 06:38 PM
Richard, it seems the Rell administration didn't repair the faulty calculators. Clearly this is a Republican problem. (sarcasm)
Richard Poulton December 04, 2012 at 06:43 PM
What was I thinking? LOL
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Bart Shuldman December 05, 2012 at 10:48 PM
If you have not heard, the State of CT needs to borrow money to pay every day bills. Things are getting really bad. It was just announced the state of Connecticut is so low on cash, state Treasurer Denise Nappier is seeking Gov. Dannel P. Malloy’s approval to seek up to $550 million in credit. Connecticut has depleted all but $103 million of the $1.4 billion budget reserve as the state’s cash position has steadily fallen. The treasurer had to transfer $366 million from bond fund investment accounts. The common cash pool has a negative balance. The treasurer has requested, and Governor Malloy has approved, the need to borrow funds externally in order to fund cash flow requirements for current operations. This is really bad, as Governor Malloy instituted the largest tax increase in the state’s history and we are now running a huge deficit. In addition, Governor Malloy granted the state employees a no-layoff agreement for the next 4 years. Our unemployment just passed 9%. Just thought you might want to know how bad things are getting in Connecticut.


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