Falling gas prices affect Connecticut budget - WFSB 3 Connecticut

Falling gas prices affect Connecticut budget

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HARTFORD, CT (AP) -

Gov. Dannel P. Malloy's budget director contends Connecticut is "holding our own" on state revenue collections, even though new figures show plummeting gasoline prices have increased this year's projected budget deficit.

Office of Policy and Management Secretary Ben Barnes told The Associated Press Friday how the state is meeting or slightly exceeding its targets for most taxes. However, revenues from the petroleum gross receipts tax - a percentage of the wholesale price of gasoline - dropped by $44 million since November.

It now appears the current $20 billion fiscal year budget could end June 30 with an approximate $70 million deficit.

But Barnes, who is crafting a new two-year budget proposal to be released Feb. 18, said he expects lower gas prices will ultimately provide a jolt to Connecticut's economy.

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