Much of Gov. Dannel P. Malloy’s third round of fiscal 2015 budget rescissions will reduce the deficit, but won’t come close to wiping out all the red ink, the Office of Fiscal Analysis said Monday.
OFA said the $13.7 million in mid-year cuts across various state agencies, announced earlier this month, will reduce the deficit by $12.1 million, to $178.9 million. That’s down from OFA’s March estimate of $191 million.
As of April 1, Malloy has issued just shy of $100 million in current-year rescissions. But only about $65 million of those cuts will reduce the deficit, OFA said.
That’s because of projected lapses in various state accounts that were targeted for cuts.
The cuts amount to 0.3 percent of the state’s budget, when lapses are accounted for, OFA said. Malloy realistically has the authority to cut approximately $283 million more, the agency noted.
