January 26th, 2012 | City

For Connecticut, predicted surplus turns into deficit

The Connecticut State Capitol building in Hartford.
The Connecticut State Capitol building in Hartford. Photo by Wikimedia Commons.

Connecticut is currently looking at a budget deficit of $144.5 million, a far cry from the $100 million surplus it predicted two months ago, the Hartford Courant reported Thursday.

The state’s ties to Wall Street are part of the problem — as a result of a downturn in holiday bonuses, wealthy bankers living in Fairfield County did not produce as much tax revenue. Real estate tax revenue has also fallen, while a consistently low unemployment rate means less income tax being paid. To balance the budget, the state is proposing a system of budgeted lapses for state agencies, with organizations spending less money than they were originally allotted.

Some on the right have argued that Malloy’s tax increases have proven ineffective and indicate poor planning. Malloy has committed to ending this fiscal year with a surplus, the Courant reported.

  • smartypants79

    how do you misjudge two months ago a discrepancy of 244 MILLION DOLLARS? that is some serious accounting error. anyone else would get fired.