The nearly $505-million budget surplus upon which Gov. Dannel P. Malloy based his now-dead $55 tax rebate proposal has been whittled down to $43.4 million, the governor’s budget director Benjamin Barnes said Wednesday.
Barnes, who is secretary of the Office of Policy and Management, alerted legislators on Monday that tax receipts, particularly capital gains, have been coming in below expectations, and that any remaining surplus would go to the rainy day fund.
The four-month legislative session ends next week.
Barnes said projections for income-tax receipts in the fiscal year that ends June 30 have been revised down by $389.1 million since earlier projections in January, from $9.02 billion to $8.63 billion.
Corporate tax collections have also fallen short of projections, which have been revised downward by $44.2 million. Meanwhile, sales tax projections were revised down by $22.6 million and federal grant expectations have been lowered by $26 million due to the timing of federal Medicaid reimbursements, according to Barnes.
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