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State Budget Deficit up Another $50 Million

Officials for Gov. Dannel P. Malloy disagree with the Connecticut comptroller's deficit figures, but acknowledge they must now file a deficit mitigation plan with the legislature.

 

State Comptroller Kevin P. Lembo says the state's mushrooming budget deficit has jumped by another $50 million, bringing the official deficit figure today to $415 million.

However, because of a technical accounting glitch, Lembo's office has not factored in to that figure Gov. Dannel P. Malloy's recently ordered budget cuts, the Connecticut Mirror reports.

When those cuts are calculated, the website reports, it brings the actual deficit closer to $290 million.

Malloy's office, meanwhile, is questioning Lembo's deficit figures. Malloy officials say they don't believe the deficit is as high as Lembo is estimating, but offered no reason for why they don't agree with the comptrollers calculations, the Mirror reports.

Lembo said the state's budget woes are, in part, the result of higher than expect spending on Medicaid. Malloy has said he will file a deficit mitigation plan with the legislature before year's end. He has blamed the state's fiscal problems on the enduring and lingering impacts in Connecticut of the nation's economic downturn.

In an effort to lower the deficit, Malloy last week announced $170 million in budget cuts, the maximum allowed by a governor without needing legislative approval. 

Perry December 04, 2012 at 05:06 PM
Does it really matter? Taxpayers in Ct are screwed from years of poor mangement. Malloy is toast! It will only get worse...just wait and see. Its time to move if you can still sell your house. And if you are renting what are you waiting for! There is no reason to stay here anymore.
JimH December 04, 2012 at 08:24 PM
Great! Soon I'll be able to experience the culture of Greece without ever having to leave the state. Sad thing is that Malloy will probably be re-elected again in 2 years to help manage the decline that he helped accelerate.
Bart Shuldman December 05, 2012 at 09:34 PM
Looks like we are in real trouble. Connecticut now showing negative balance and we are looking to borrow money to fund everyday business. Governor Malloy has run CT into the ground. This is really bad. Just announced the state of Connecticut is low on cash, so state Treasurer Denise Nappier is seeking Gov. Dannel P. Malloy’s approval to seek up to $550 million in credit. Connecticut has depleted all but $103 million of the $1.4 billion budget reserve as the state’s cash position has steadily fallen. The treasurer had to transfer $366 million from bond fund investment accounts. The common cash pool has a negative balance. The treasurer has requested and the Governor has approved the need to borrow funds externally in order to fund cash flow requirements for current operations. This is really bad--the Governor-if you remember--signed a document that does not allow him to layoff any workers for 4 years!! We are in real trouble.

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