State predicted to hit $56.2 million deficit - WFSB 3 Connecticut

State predicted to hit $56.2 million deficit

Posted: Updated:
(WFSB) (WFSB)
HARTFORD, CT (WFSB) -

According to the state comptroller, Connecticut is looking at a potential $56.2 million deficit for fiscal year 2017.

Kevin Lembo announced the number on Tuesday.

He said his deficit projection remains slightly higher that that of the Office of Policy and Management's because of a variance in estimated claims expenditures.

The variance was associated with settlement payments for the SEBAC vs. Rowland case, in which state workers were laid off in 2002 and 2003 without advance notice.

Lembo said while the OPM projected expenditures to be $9 million, there's a chance it could reach $23.6 million if settlement payments are not delayed.

He told Gov. Dannel Malloy in a letter that continued budget management could eliminate the deficit, particularly if something is done this month.

December and January are when the largest collections of income tax take place.

A new revenue forecast by the OPM is set for Jan. 15.

“The January consensus estimates will incorporate significant new collection data,” Lembo said. “It’s also important to note that there are several positive economic indicators that could be promising if sustained – though it’s too soon to be anything other than cautiously optimistic.”

Lembo said that state spending will exceed the budget by $33 million.

“Connecticut’s budget performance is dependent upon the performance of the national and state economies,” Lembo said.

Copyright 2017 WFSB (Meredith Corporation). All rights reserved.