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Connecticut’s Deficit Rises to $192 Million

Various measures were taken in the past couple years in order to close Connecticut’s deficit, but that problem keeps resurfacing.

Connecticut’s deficit is growing faster than expected.

Comptroller Kevin Lembo projects a $192 million deficit for the fiscal year of 2012, which ended on June 30. Previous projections in April had the deficit at only $142 million.

“The economy is the largest single influence on the state budget - dwarfing any other budget drivers,” Lembo said in a statement. “Wall Street’s erratic equity markets and challenges in the financial sector - which had the largest private-sector job loss in the state - is the driving force behind this deficit.”

State income tax levels are as predicted, with a 18.3 percent increase from the 2011 fiscal year. However, taxes from capital gains and bonuses grew only 5.9 percent.

Another problem is that state spending missed its mark by running $22.5 million higher than expected. The deficit will likely be closed using reserve money, said Lembo.

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