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State Ends Fiscal Year with $143.6 Million 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 r. In July, Lembo expected a $192 million deficit. 

Wake up CT September 05, 2012 at 05:16 PM
I guess we should all be grateful that the state lost less money than they thought they would lose. What a great deal for us taxpayers! I guess it would make too much sense that if you see you are losing money you cut spending even more to try to avoid losing any money.
Connecticut15 September 06, 2012 at 12:45 AM
Time to act like a business and cut across the board.
EMR September 06, 2012 at 01:31 AM
well...we are still paying a fire lieutenant in wilton who is an admitted criminal for 200k a year under a republican administration...so go figure!
Cliff Cuming September 06, 2012 at 02:06 AM
Republican in name only. They are addicted to spending. Take a look at the conduit to nowhere vote.

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