State deficit projected at $40M following mitigation

Following Gov. Dannel P. Malloy’s budget reductions and the Legislature’s deficit mitigation bill, Comptroller Kevin Lembo has projected a state budget deficit of $40 million for the 2013 fiscal year.

“Revenues through November have continued to underperform budget expectations, and the economy continues to recover at a slower pace than originally forecasted,” Lembo said.

Last month Lembo had predicted a $50 million deficit followed by a $415 million deficit, after more data covering Medicaid spending was available. Another round of updated figures is due Jan. 15.

Malloy will put forward a new budget for the 2013-2014 biennium in February.