Budget Deficit Estimate Drops

HARTFORD, Conn. (AP) _ Gov. Dannel P. Malloy’s budget director says the state of Connecticut is setting aside about $102 million for reserves because revenues are higher than projected, including a modest improvement in income tax collections.

The money will replenish a rainy day fund that had been depleted during the economic downturn.
Benjamin Barnes said in a letter Friday to state Comptroller Kevin Lembo that the budget deficit for the fiscal year that ended June 30 is now $120.3 million, compared to an earlier projection of $192.3 million. A copy of the letter was obtained by The Associated Press.

In May, state lawmakers passed a budget that covered the deficit with money originally marked for debt payments. Barnes said $102 million of that money will now be left in reserves.

(Copyright 2012 by The Associated Press. All Rights Reserved.)


More From CBS Connecticut

Win Red Sox Tickets All Season
Price Chopper Supermarkets Presents Retail Food Rescue Program

Listen Live