OFA Estimates $161M State Budget Deficit
In its monthly state budget projection, the General Assembly’s nonpartisan Office of Fiscal Analysis projects the state will end the fiscal year on June 30 with a deficit of $161 million. That is an increase of $16.5 million since last month.
OFA says while projected state expenditures have dropped by $15 million, it was more than offset by a projected decline in revenues of $31.5 million. The figures include the impact of Governor Dannel Malloy’s anticipated budget rescissions totaling $80.6 million, but do not include plans to side aside funds for the state’s conversion to Generally Accepted Accounting Principles because the law requires such a reserve only if there is a surplus.
State budget projections from Malloy’s Office of Policy and Management have been a bit more rosy, and in the past, the governor has downplayed OFA’s projections and said he will do what needs to be done to ensure the state ends the fiscal year with a balanced budget.
You can read OFA’s full report here.