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Your Take: Connecticut’s Deficit Rises to $192 Million

Various measures were taken in the past couple years in order to close Connecticut’s deficit, but that problem keeps resurfacing.

Connecticut’s deficit is growing faster than expected.

Comptroller Kevin Lembo projects a $192 million deficit for the fiscal year of 2012, which ended on June 30. Previous projections in April had the deficit at only $142 million.

“The economy is the largest single influence on the state budget – dwarfing any other budget drivers,” Lembo said in a statement. “Wall Street’s erratic equity markets and challenges in the financial sector – which had the largest private-sector job loss in the state – is the driving force behind this deficit.”

State income tax levels are as predicted, with a 18.3 percent increase from the 2011 fiscal year. However, taxes from capital gains and bonuses grew only 5.9 percent.

Another problem is that state spending missed its mark by running $22.5 million higher than expected. The deficit will likely be closed using reserve money, said Lembo.

What's your take? Should Connecticut close its budget deficit by using funds from its reserve? Add your thoughts in the comments!

dave July 03, 2012 at 06:03 PM
malloy criticized the rell administration for trick accounting, but this is even more so. malloy has used bonding money for capital projects, state worker pension and healthcare funds for everyday expenses. under his promise to convert to GAAP, the state has a deficit of over 2 billion, dont let these fools lie to you. we are in grave danger under this tax and spend progressive liberal.
Richard Poulton July 03, 2012 at 07:07 PM
Lembo firsy blames all the money trouble on Wall Street then says the state over spent by $22.5 million dollars. Sounds to me the state can't or refuses to stop spending, just the federal government. Get in a dollar but spend it as if it was 3. We will be continually screwed by those we elect who refuse to cut spending.
Richard Poulton July 03, 2012 at 07:09 PM
sorry about miss spelled or incomplete sentences. Splitting headache that is intefering with vision.
Gud Likker July 05, 2012 at 04:52 PM
It is not a question of not enough money - there is plenty of tax money to run the state. The problem is out-of-control spending. Let's audit welfare - how much waste is there? How about medicaid? Projects like the busway from New Britain to Hartford - absolute wastes of money. Funding teacher benefits and pensions so we can have a high school graduation rate under 60% in Hartford - is a waste. Waste is all around us - all thanks to the Democrats who have controlled the legislature for the last 40 years.
Gud Likker July 05, 2012 at 04:54 PM
Democrats are for the even sharing of miseries through welfare; GOP is for the uneven sharing of blessings through hard work. It's that simple. Want any more of that promised Hope and Change? Democrats will be happy when all of us - except the politicians - are all in the gutter - living off a handout - dependent on government for everything.

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