HARTFORD, Conn. (CBS Connecticut) – State Comptroller Kevin Lembo is projecting a $93.9 million deficit for the fiscal year ending June 30, 2018 if the state continues to operate without a budget.
The state has been operating under an executive order signed by Governor Dannel Malloy since July 1. Lembo warns that continued budget gridlock will have serious implications in both the short and long term.
“The inability to pass a budget will slow Connecticut’s economic growth and will ultimately lead to the state and its municipalities receiving downgrades in credit ratings that will cost taxpayers even more,” Lembo said. “Connecticut’s economy continues to post mixed results across an array of key economic indicators. These results do not indicate that the state can grow its way out of the current revenue stagnation.”
Lembo says the state’s ability to meet its spending obligations is impaired by its inability to raise additional revenue.
Lembo noted that expenditures through July – the first month of the fiscal year – were 10.1 percent higher than last year and reflect the problems that the state will face throughout the year. The double-digit increase is due to rising fixed costs, including debt and retirement costs, he said.