Gov. Dannel P. Malloy’s budget director is once again projecting a deficit for the fiscal year that ends in June.
Benjamin Barnes, secretary of the Office of Policy Management, said he’s projecting a deficit of $7.1 million, compared to his month-ago projection of a $200,000 surplus. That short-lived surplus came after cost-cutting actions by the legislature in a December special session.
The latest deficit projection largely results from a $26.8 million decline in state revenue, Barnes said in his monthly report to the state comptroller. Personal income tax revenue has missed the mark by $75 million, he said.
Meanwhile, Barnes revised corporation tax revenue upward by $50 million and the inheritance and estate tax by $24 million. He said the latter continues to exceed monthly projections.
He also said several large lottery jackpots have helped the state coffers to the tune of an additional $9 million.
Expenditures are projected to be $100.6 million below budget projections. They are offset by $45.5 million in additional expenditures passed at a special session in December.
