The state Office of Policy and Management has improved its budget shortfall projections to $41.6 million for fiscal 2016-17, compared with $67.8 million reported a month ago.
The improvement is due to savings in the judicial branch and in fringe benefit costs, according to OPM Secretary Benjamin Barnes.
The information is detailed in a Dec. 20 letter and analysis from Barnes to Comptroller Kevin Lembo.
Lembo on Dec. 1 projected a fiscal 2017 deficit of $82.3 million, but noted the largest potential offset from tax collections are due in the next two months, so it remains a work in progress. Taxes and other revenues typically do not come in until the second half of the fiscal year and are heaviest in April, Barnes said.
On the expenditures side, the biggest shortfalls are an anticipated $12 million for debt service in the state treasurer’s office; $10.8 million in the Office of Early Childhood; and $2.2 million in the Department of Corrections for workers’ compensation claims trending above budgeted levels.
The next forecast is due on or before Jan. 17.
