Connecticut Comptroller Kevin Lembo is projecting a $594.5 million deficit in the state budget for fiscal year 2018.
In a letter to Gov. Dannel P. Malloy, Lembo said this new projection is slightly lower than the forecast issued by the Office of Policy and Management due to a recent state settlement delay.
This one-time windfall in estimated and final income tax collections totals $4.54 billion, and Lembo explained that approximately $1.39 billion of income tax revenue would exceed the state”™s new volatility threshold. As a result, approximately $779.4 million will likely be transferred to the state”™s Budget Reserve Fund, which would bring that fund to approximately $992.3 million, or roughly 5.25 percent of the state”™s General Fund budget.
“Connecticut”™s budget results are ultimately dependent upon the performance of the national and state economies,” Lembo said. “Recent indicators show that the State of Connecticut continues to lag behind the nation”™s economic recovery in key areas.”
