We have a state budget, finally, but the financial horizon skies look awfully stormy for the next governor who takes office January 2019. Hide the whiskey bottle.
CT Mirror reporter Keith Phaneuf provides the sobering news for the state’s next chief executive.
While it orders net tax increases this fiscal year and next, the new state budget pledges major tax cuts after that. But it’s unclear whether the businesses, estates, retirees, students and others promised about $130 million in annual breaks will actually see that relief.
That’s because state finances are projected to be much worse off in two years than they are now, when lawmakers say this relief is unaffordable.
Without the tax hikes, spending cuts and other adjustments in the new budget, analysts had said state finances would run $1.6 billion in deficit this fiscal year and $1.9 billion in 2018-19, or $3.5 billion in the red across the biennium.
… The nonpartisan Office of Fiscal Analysis says this plan, if continued into the 2019-20 and 2020-21 fiscal years, would amass red ink totaling $1.9 billion and $2.7 billion respectively–gaps of 10 and 13 percent–or $4.6 billion across that biennium.
Full story here.