State Comptroller Nancy Wyman agreed with Gov. M. Jodi Rell’s budget office that the state is running a $45.3 million deficit in the third month of fiscal year 2011.
Most notably, the income tax is expected to exceed original budget estimates by $127.5 million, and the sales tax is projected to end the year $153.8 million over budget.
Those revenue receipts are mainly due to the state gaining about 8,000 jobs since January.
“The positive news is that we are finally seeing some solid revenue growth that is directly tied to the recent upswing in jobs,’ Wyman said. “But those gains are unfortunately being negated by the inability of some agencies to achieve the savings targets that were built into the budget.”
“Tempering this positive revenue outlook are projected Fiscal Year 2011 General Fund deficiencies of $171.2 million due to the inability to achieve budgeted savings,“Wyman wrote in her monthly letter to Rell. “The largest single deficiency totals $140 million within the Department of Social Services. In addition, the state will rely on almost $650 million in borrowing to correct for structural budget imbalances. Total unadjusted General Fund disbursements for Fiscal Year 2011 are projected to be almost 4 percent above last fiscal year.”