Ouch! Declining Income Tax Revenue Could Expand State Deficit

More messy financial news from Hartford as cities and towns await final state assistance to plug into their local budgets–lower than anticipated state income tax receipts. The state legislature continues to battle with its budget while local municipal officials hold their collective breath.

CT Mirror reporter Keith Phaneuf has more:

New reports show dramatically eroding state income tax receipts that could expand the deficit in the next two-year budget by more than $500 million while depleting existing reserves.

Although six more days remain before analysts complete their review of April income tax receipts, the new numbers also raise the prospect state government may have to borrow to balance the current budget–the first time Connecticut has had to do so in eight years.

And these reports come as Gov. Dannel P. Malloy and legislators are scrambling to avoid raising income tax rates for the third time since 2011.

The legislature’s nonpartisan Office of Fiscal Analysis notified the Finance, Revenue and Bonding Committee on Monday that April receipts are running $267 million below the level anticipated in this fiscal year’s adopted budget.

Full story here.

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3 comments

  1. Captain Hawley,
    Thank you for indicating the resources available from the Hartford Courant, CT Mirror, and New Haven Register….Notably our local newsprint is not mentioned,m CT Post, but fiscal news of local budgets follows news releases, rather than questions that are raised by the public and follow-up by staff. And the business model grows more silent….Time will tell.

    1. Sadly there were many more articles dating back to when Dan entered office all echoing his rosy outlook on the CT economy and budget that never came to pass. These were just the tip of the iceberg and the ones easiest to find.

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