If economic recovery is occurring in Connecticut it is not reflected in state tax revenue, state Comptroller Nancy Wyman said Monday.
Wyman said Monday that weak tax revenues and higher state spending have increased her budget deficit projections to $243 million for the fiscal year that ends June 30, an $85 million increase over her estimate a month ago.
“While an economic recovery may be under way, its impact on state tax revenues has been muted,” Wyman said.
Wyman said income tax receipts for February were $20.6 million below expectations and the state tax brought in about $14 million less than expected.
Wyman said higher spending by state agencies had added another $20 million, most of it for Medicaid payments.
The deficit could grow larger based on preliminary projections for revenue in April, which Wyman said could drop by an additional 10 percent.