Connecticut is looking at a $1.7 million budget hole this fiscal - WFSB 3 Connecticut

Connecticut is looking at a $1.7 million budget hole this fiscal year

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(WFSB photo) (WFSB photo)

If the 2017 fiscal year ended on Monday, Connecticut would wrap it up being $107.2 million in the hole.

Comptroller Kevin Lembo said that's despite mitigation efforts.

Lembo wrote a letter to Gov. Dannel Malloy to say that the state's budget reserve fund will be reduced to $128.38 million after closing any remaining deficit on current protections.

“Long-term planning must be a priority to prepare for ongoing uncertainties and developing trends in the national and state economies that will likely influence future budgets as well,” Lembo said. “Those factors include a statewide population decline and shift – as well as a plan announced by the Federal Reserve to reduce its balance sheet by $2 trillion from the end of this year through 2022."

Lembo said the Federal Reserve's plan could cause a disruption in the stock market, with unknown ramifications on the state and national economies.

He said the state has already seen a deterioration in revenue from income tax and sales tax.

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

Lawmakers are expected to reconvene later this month to take up the issue of the state budget.

Malloy signed an executive order last week to keep essential state programs running while the state operates without a budget.

Lawmakers were unable to agree on one before the fiscal year ended on July 1.

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