Budget cutbacks proposed by Gov. Dannel P. Malloy aren’t enough to offset increasing revenue drops. That’s the message from Office of Policy and Management (OPM) Secretary Ben Barnes in his monthly financial update on the state’s $18 billion budget for 2015-2016.
Barnes told state Comptroller Kevin Lembo the budget shortfall now stands at $130.8 million. That number has grown $110.9 million since last month and that’s despite $67.1 million in cuts made by the governor on March 16. Barnes wrote it was offset by $178 million in downward revisions to predicted revenue.
The numbers could change significantly if April tax collections don’t hit expected numbers. The OPM letter noted, too, that tax income refunds are running $10 million ahead of projections, further dampening state projections.
The Special Transportation Fund is also expected to end the year with a $14.6 million deficit. Barnes said this is because of declining revenue associated with lower fuel prices.
