State Ends Fiscal Year with $143.6M Deficit

Revenues in Connecticut fell well short of what was expected.

Connecticut ended the fiscal year with a $143.6 million deficit, which was eliminated using the state’s reserves.

Revenues failed to meet expectations despite growing by 4.8 percent in the 2011-12 fiscal year. Revenues totaled $854.2 million, short of the target by $227 million.

According to the office of Comptroller Kevin Lembo, expenditures in 2013 are budgeted to rise by 2.6 percent, while revenues are expected to grow at a 3.1 percent rate. 

"This rate of (spending) increase is historically low and will require careful monitoring and swift remedial action if outlays trend higher," Lembo said in a press release.

According to Reuters, spending rose 5.2 percent in the 2011-12 budget compared to the previous year. 

Lembo’s office said the largest spending increase was in the Department of Social Services by $409.4 million, or 7.6 percent, as Medicaid caseloads rose 52 percent. 

More spending increases came from contributions to teachers’ retirement, up $210.2 million debt service payments and funding for state employees’ retirement.

Still, salary and wage costs declined by more than 8 percent. 

Despite the deficit, it was . In July, Lembo expected a $192 million deficit. 

Dr. Robin Appleby September 05, 2012 at 10:07 PM
CT. residents have the heaviest tax burden of all 50 states.....but no matter how high they raise the taxes, it is never enough for the Democrats.
Diogenes September 05, 2012 at 11:20 PM
Robin - great fact! It doesn't matter that it is entirely false, it certainly will put the liberal big spenders in their place! I love it. It's a good thing that we have finance board commissioners with such a finger on the pulse of spending... It's also a good thing that feeding the myth works so easily and very few will do any research (for instance I hope noone goes to: http://www.mymoneyblog.com/state-tax-rate-maps-how-does-your-state-compare.html). It doesn't matter how big the lie, it is never too big if it supports the myth that needs to be propagated! Excellent.
Steven DeVaux September 06, 2012 at 12:01 AM
The governor promised a balanced budget. The governor lied.
Mary Davis September 06, 2012 at 12:18 AM
Are you Loco? Tax Freedom Day Arrives on May 5 in Connecticut, Latest in the Nation! Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, Connecticut taxpayers work until May 5 (ranked 1st nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: New York, May 1 (ranked 2nd nationally); Massachusetts, April 22 (ranked 8th nationally); and Rhode Island, April 15 (ranked 21st nationally). http://taxfoundation.org/state-tax-climate/connecticut
Diogenes September 06, 2012 at 12:45 AM
Yes, keep fighting the good fight against the liberal socialist scourge that is education and critical thinking. Don't tell anyone, but this is another example of intellectual dishonesty that I think you fell for. "Tax Freedom Day" for The State has very little to do with the the taxes collected by The State. We are "1st", because we are also "1st" in per capita income. Got the point though: "taxes - bad".
Dr. Robin Appleby September 06, 2012 at 09:53 AM
CT. is # 1....highest tax state, according to Bloomberg on 4/14/12. Gov. Malloy and the Democrats just raised another 50 taxes, over a billion dollars, on struggling families.....but it is still not enough. It's never enough for them. The largest tax increase in CT. history.....yet we have one of the most underfunded pensions in the country. My prediction is the Democrats will eventually try to dump part of the state workers' pensions on the towns, like Maryland is trying to do.
Diogenes September 07, 2012 at 01:40 AM
Couldn't locate your citation from Bloomberg, but still got the point: taxes - bad: intellectual integrity notwithstanding. My prediction is that the Republicans will continue to pimp out Our Great Nation to parasitic corporations, dismantle public education, and continue padding the pockets of the most priveldged. I also predict that if they were ever in unfettered control the tax money collected would be used to support unnecessary transvaginal ultrasounds, in the name of "limited government".


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