A day before the Democrat-controlled Appropriations Committee unveils its spending plan for fiscal years 2010 and 2011, state Comptroller Nancy Wyman projected this year’s deficit at $1.017 billion.
In a Wednesday afternoon press release Wyman said the estimate is about $222 million lower than last months projections due to steep drops in both the income and sales tax revenue. She said the deposit of more than $380 million in federal stimulus money and about $650 million in deficit mitigation steps approved by the General Assembly were included in her estimates.
“This unrelenting revenue slide continues to accelerate as we enter the last quarter of the fiscal year,” Wyman said. “Unfortunately, as time goes on the options to deal with the deficit continue to shrink and put our $1.4 billion Rainy Day Fund in greater jeopardy.”
The income tax was expected to bring in $7.6 billion this year, but will likely fall nearly $1 billion short of that target. Along with the crash of the financial markets, Connecticut has lost more than 50,000 jobs over the past year, including more than 14,000 in February alone. That will result in the state paying out about $165 million more in tax refunds than was anticipated.
Wyman’s estimate is about $350 million higher than that of the Governor’s budget office, due to the Comptroller’s lower projections of income tax and sales tax receipts.