Gov. M. Jodi Rell says state’s budget surplus, once projected as high as $263 million, has vanished.
This fiscal year that ends June 30 is now estimated to end at least $19 million in the red.
The governor and legislative leaders had private budget negotiations on Wednesday. The Republican governor has asked lawmakers for a list of their budget priorities.
If a deal isn’t reached on a revised budget by the end of the legislative session next Wednesday, the $18.5 billion tax and spending plan approved last year would take effect without any changes.
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The dwindling surplus appears to stem from a combination of slowing state revenues and a delay in federal Medicaid reimbursements.
