State Comptroller Kevin Lembo is predicting a $7.1 million deficit for the 2016 fiscal year, he said Monday, which matches a prediction by the state Office of Policy and Management (OPM).
Lembo acknowledged that his estimate varies widely from that of the the legislature’s Office of Fiscal Analysis (OFA), which last week predicted a $72.2 million deficit.
Lembo said both OPM and OFA share similar revenue projections for the remaining five months of this fiscal year. But he sides with OPM in its belief that the state can achieve $346.7 million in general fund savings.
OFA, in its report last week, it reflects an increase of $65.1 million in the projected deficit of $7 million since deficit-mitigation actions were taken during the December special session. OFA said the increase is attributable to net increases of $38.3 million in spending and a decline of $26.8 million in revenues since December.
In a statement, Lembo said, “With respect to budget risk factors for Fiscal Year 2016, my greatest concern is the potential for continued erosion in the general fund revenue forecast … stock market declines have had a large negative impact on estimated income tax collections.”
