The state of Connecticut is expecting to end the year with a $22.9 million budget deficit, according to Office of Policy and Management Secretary Melissa McCaw.
Lembo”™s most recent estimate was that the state would end the year with a $31.6 million deficit.
Connecticut”™s rainy day fund is on track to end the year with $2.8 billion, or 13.9% of the general fund, by the beginning of the next fiscal year, according to McCaw.
In her letter, McCaw estimates a net shortfall of $18.9 million, including projected shortages of $35 million in the State Employees”™ Health Service Cost account to reflect higher than expected claims experience and premium costs; $1.5 million in the Employers”™ Social Security Tax account; and $1.4 million in the state employees retirement defined contribution match account.
“Partially offsetting these shortfalls are a projected lapse of $2.5 million in the Unemployment Compensation account; a $3 million lapse in the Other Post Employment Benefits account; and a $13.5 million lapse in the Higher Education Alternate Retirement Program (ARP), which is attributable to 1,600 employees shifting from ARP to SERS as an outcome of a grievance award,” McCaw wrote.
Other factors contributing to the budget shortfall include $6.5 million at the Department of Emergency Services and Public Protection; $1.5 million at the Department of Mental Health and Addiction Services; $13.8 million in the Department of Social Services Medicaid account; $1.8 million at the Office of Early Childhood; and $11 million at the Department of Correction.
Lembo”™s next budget projection will be released on Jan. 2.