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Connecticut's Budget Deficit is Growing

Is the state heading toward its own fiscal cliff?

 

Connecticut's budget deficit is increasing, taking a perilous plunge on Friday that is pushing it toward the $300 million mark, the Connecticut Mirror reports.

While the website questions whether the deficit will force Gov. Dannel P. Malloy to increase taxes—again—to cover continued budget shortfalls, Malloy last week said he would not hike state taxes, according to the Republican-American newspaper. 

The growing state budget deficit, the Mirror reports, is the result of revenue shortfalls that are greater than Malloy administration officials originally anticipated. Officials in his administration blame the shortfalls on the overall weakness of the national economy. State Republican leaders, however, lay the blame on the weakening effect on the state's economy of the $1.5 million in new taxes the Malloy administration implemented in the last year.

Malloy will present his new budget plan to the General Assembly when it meets in early 2013.

Voice of Reason November 13, 2012 at 12:39 AM
Well, this is one time where I'd agree that revenue shortfalls placed a significant role in the deficit. Problem is though, when folks are out of work and/or broke they don't have the funds to pump the taxes (ahem.....revenue) back to the State. But what's another $300 million added to the $100 billion (Billion, with a B) that is already CT's true debt? Why not just keep spending and while we're at it, just give the Unions all the cash they want too. Hey, perhaps Geithner can ship Dannel his own printing press and save the fuel cost of shipping cash up here.
socrates November 13, 2012 at 12:59 AM
This was predictable. I was one who did predict it. It was a stupid, stupid thing to do. Now Malloy can raise taxes again and watch the state continue to sink under the weight of its profligacy. Democrats just cannot stop spending.
Voice of Reason November 15, 2012 at 03:16 AM
"pushing it toward the $300 million mark". Uh-Oh. Today we're at $365 million deficit. Meh, it's only spending a million bucks per day you don't have. Can't take long to get in trouble doing things like that right? Keep up the great work guys, taxpayers can still sell organs to pay their taxes and with free Obamacare for everyone we can have the surgery done for free. Yay!!

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