Comptroller Projects Deficit; EITC Costing 20% More Than Budgeted
HARTFORD, Conn. (AP) _ State Comptroller Kevin Lembo says Connecticut’s current fiscal year budget is projected to end with a $20.7 million deficit.
In a letter to Gov. Dannel P. Malloy, released Thursday, Lembo said the state’s new Earned Income Tax Credit program for low-income residents is generating refunds about 20 percent above budget expectations. He said if the trend continues, the tax refunds could exceed the amount budgeted by $22 million.
Lembo said Connecticut’s economy “continues to show slow and inconsistent growth.”
Also Thursday, state Treasurer Denise Nappier reported that Connecticut had an adequate, overall cash balance in January, even though some bond proceeds were temporarily transferred to cover some expenses.
Nappier took issue with lawmakers who’ve criticized such internal transfers, saying they have nothing to do with the state’s overall borrowing practices.
(Copyright 2012 by The Associated Press. All Rights Reserved.)