The projected state budget deficit for fiscal year 2015, which ended June 30, decreased from $115.7 million to $70.9 million as budget accruals trickled in throughout July, according to State Comptroller Kevin Lembo.
The budget accruals will continue to come in through August, after which any deficit will be eliminated through a transfer from the state budget reserve fund at the end of 2015.
The main reason for the deficit is revenue is expected to fall $144.5 million below the initial expectations, largely due to the state income tax that came in $110.5 million short of expectations.
Even as revenue fell short, collections of the corporation tax is expected to rise 3.8 percent over last fiscal year, as revenue from that tax alone is expected to grow $107.7 million.
