Connecticut ended the fiscal year with a $143.6 million deficit, which was eliminated using the state’s reserves.
Revenues failed to meet expectations despite growing by 4.8 percent in the 2011-12 fiscal year. Revenues totaled $854.2 million, short of the target by $227 million.
According to the office of Comptroller Kevin Lembo, expenditures in 2013 are budgeted to rise by 2.6 percent, while revenues are expected to grow at a 3.1 percent rate.
"This rate of (spending) increase is historically low and will require careful monitoring and swift remedial action if outlays trend higher," Lembo said in a press release.
According to Reuters, spending rose 5.2 percent in the 2011-12 budget compared to the previous year.
Lembo’s office said the largest spending increase was in the Department of Social Services by $409.4 million, or 7.6 percent, as Medicaid caseloads rose 52 percent.
More spending increases came from contributions to teachers’ retirement, up $210.2 million debt service payments and funding for state employees’ retirement.
Still, salary and wage costs declined by more than 8 percent.
Despite the deficit, it was initially projected to be much higher. In July, .