HARTFORD, CT (CBSNewYork) – Despite a record increase in state taxes, Connecticut will come up short nearly $1 billion dollars by year’s end.

WCBS 880 Connecticut Bureau Chief Fran Schneidau On The Story

Gov. Dan Malloy blames the shortfall on reduced income tax revenue among higher income taxpayers shifting their investments.

Republican State Senator Scott Frantz, a member of the legislative finance committee, says the governor may have a point there, but “the other thing is that when you raise taxes, it’s like raising prices. People tend to not buy as much, and when you raise taxes, people tend to get much more intelligent about how they’re managing their income.”

Frantz says unknown is how many residents moved out of Connecticut because of the huge tax increases that kicked in on July 1.

Spending cuts are being ordered as result of this expected shortfall.

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