HARTFORD, Conn. (CBSNewYork/AP) – Budget offices for Gov. Dannel P. Malloy and the General Assembly are predicting Connecticut could face budget deficits over the next three fiscal years.

State legislators were briefed Friday on the state’s projected fiscal health.

Karen Buffkin, deputy secretary of the Office of Policy and Management, said Medicaid, debt service and state employee and retiree health care among some of the biggest costs driving the budget shortfalls. OPM predicts approximately $1 billion deficits in each of the next three fiscal years. The typical budget is about $20 billion.

Buffkin contends the state will balance this year’s budget, which is $99.5 million in debt so far.

While Malloy has made spending cuts and imposed hiring slowdowns, legislative Republicans contend the problem is worse and a special session is needed next month.

Senator Rob Kane told WCBS 880’s Connecticut Bureau Chief Fran Schneidau he can’t believe Gov. Malloy when he insists he will not rasie taxes since, even with his $48 million budget cuts, the state still faces a $50 million defecit.

“Four years ago, this governor said raising taxes would be a last resort and what did he do? He put forth $1.8 billion, the largest tax increase in our state’s history,” Kane said.

In Connecticut, the governor does have the authority to make certain line-item cuts, while larger cuts require legislative approval.

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