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OFA: Malloy’s budget rescissions will reduce deficit by less than expected

The $54.7 million in state budget rescissions announced last month by the Malloy administration will only reduce the deficit by $24.6 million, the nonpartisan Office of Fiscal Analysis said Thursday.

That’s because projected lapses in various state accounts exceeded the rescissions that applied to them, OFA said. In those instances, the state would not achieve savings that would take a bite out of the deficit, projected by OFA last month to be $89.1 million.

Projected lapses were larger than rescission amounts in 29 of 118 accounts across various state agencies. The effect was that more than half of the total rescissions won’t reduce the deficit.

Two rescissions to the Department of Developmental Services would also result in a loss of $1.3 million in federal revenue, OFA said.

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The largest rescissions were to education, museums and libraries ($11.7 million), health and hospitals ($9.7 million), and corrections ($9.2 million).

Image credit: freedigitalphotos.net

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