Lower than anticipated revenue is to blame, according to Office of Policy and Management Secretary Benjamin Barnes.
Gov. Dan Malloy unveiled the second, two-year budget of his administration on Wednesday, promising to move Connecticut closer to recovery from the national recession by continuing investments in education and job development.
Comptroller Kevin Lembo now puts the shortfall at $415 million due to lower than expected revenues and overspending in Medicaid and social services. A spokesman said Gov. Dannel Malloy disagrees with the comptroller’s deficit projection, saying it is about 12 percent too high.
When a Hartford-based investment management company surveyed the states for credit worthiness, Connecticut came in dead last.
The governor’s office announced plans to release updated budget projections on Nov. 20 but has already ruled out any further tax hikes.
Nearly every Connecticut resident will pay more in taxes under the budget being proposed this week by Gov. Dannel P. Malloy.