Connecticut is on pace to close the fiscal year that ended on June 30 with a budget deficit of $504.6 million, according to Gov. Dannel Malloy’s budget office – an improvement of $96.4 million from its June estimate.
The reduction is due to continued spending restraint combined with strong year-end performance for several revenue sources, according to the state Office of Policy and Management (OPM), whose secretary, Ben Barnes, indicated that the deficit could continue to decrease as certain taxes and other revenue received in July will be applied to the 2018 fiscal year.
The OPM reported a net $51 million increase in state revenue compared to last month’s estimate.
The remaining 2018 deficit will be offset through an automatic transfer from the budget reserve fund after Connecticut Comptroller Kevin Lembo’s office delivers a final figure at the end of the year. Earlier this month, Lembo estimated the deficit would be $594.5 million.