Revised state budget deficit estimates may trigger more cuts - WFSB 3 Connecticut

Revised state budget deficit estimates may trigger more cuts

Posted: Updated:
(WFSB file) (WFSB file)
HARTFORD, CT (WFSB/AP) -

Revised estimates show Connecticut's current budget deficit has grown large enough to potentially trigger a mid-year, budget-cutting plan from Democratic Gov. Dannel P. Malloy.

In a letter to Comptroller Kevin Lembo, Benjamin Barnes, who is the secretary at Office of Policy and Management, stated the current fiscal year is now projected to be $202.8 million in deficit. The letter states this amount is "slightly more than one percent of net General Fund appropriations," which is the threshold requiring Malloy to issue a deficit-mitigation plan. 

Lembo would first have to confirm the figure.

The change comes after changes were approved last week to the recently passed two-year $41.3 billion budget. Just last week when the House and Senate signed off on the final items that estimated the current fiscal year is $178.4 million in deficit.

Barnes blames the larger shortfall on changes made to a tax on hospitals that triggers federal reimbursement funds.

At the end of the week, Gov. Dannel Malloy announced he was holding back funds to cities and towns.

To read the full letter, click here

Copyright 2016 WFSB (Meredith Corporation). The Associated Press contributed to this report. All rights reserved.