Connecticut’s deficit is projected to come in at just over $56 million for fiscal 2016-17, slightly higher than the Office of Policy and Management’s last estimate, state Comptroller Kevin Lembo said Tuesday.
Despite that upturn, Lembo also said in a letter to Gov. Dannel P. Malloy that “active budget management” could ultimately eliminate the deficit, noting the month of January is critical because estimated income tax payment collections are largest from December through January.
OPM Secretary Benjamin Barnes most recently projected a deficit of $41.6 million, but Lembo projects $56.2 million.
A new consensus revenue forecast by OPM and the legislature’s nonpartisan Office of Fiscal Analysis is scheduled for Jan. 15.
Overall General Fund revenue is expected to fall $45.9 million short of the initial budget target, with shortfalls in the income tax, sales tax and federal receipts partially offset by an $80-million legal settlement awarded to the state and an $18.1 million gain in estimated provider tax payments, Lembo said.
“The January consensus estimates will incorporate significant new collection data,” Lembo said, adding he is “cautiously optimistic.”
