Conn. Revised Budget Shows Much Smaller Surplus, Deficit For 2015
HARTFORD, Conn. (CBSNewYork) - Time is running out for Connecticut state lawmakers to reach a budget agreement.
As WCBS 880 Connecticut Bureau Chief Fran Schneidau reported, a budget that was expected to end the fiscal year with a $500 million surplus now has lawmakers projecting a very thin margin this year and a deficit for fiscal 2015.
Conn. Revised Budget Shows Much Smaller Surplus, Deficit For 2015
Gov. Dannel P. Malloy's budget office is now projecting the current fiscal year's General Fund will end $43.4 million in surplus, a drop of $461.5 million, according to a letter sent Wednesday from the Office of Policy and Management to the State Comptroller.
Malloy's proposed $55-per-person tax rebate, to be paid for with surplus funds, was a casualty of the declining revenues. Malloy scrapped the idea, citing a drop in expected revenue from capital gains income. OPM said personal income tax collections are down $389.1 million from original projections.
State Senate Republican leader John McKinney said he's not surprised by the revised projections.
"It's a result of the high tax increase. Gov. Malloy overestimated revenues," he told Schneidau.
McKinney is running for governor.
He said his offers to reach a bipartisan budget deal have been turned down.
"It's a very arrogant attitude and unfortunately, we've seen that in Connecticut under one-party rule where the Democrats control everything in state government," said McKinney.
Lawmakers have until the current legislative session ends next Wednesday to work out a solution.
Some lawmakers have voiced support for legalizing the game of keno to help boost revenues.
The Democratic governor's handling of the budget and economy is expected to be a key issue in this year's gubernatorial race. Malloy is seeking a second term.
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