Connecticut Deficit Narrows to $880 Million, Budget Chief Says

Connecticut’s projected budget gap shrank to about $880 million as personal income tax revenue exceeds estimates, according to Office of Policy and Management Secretary Melissa McCaw.

• Gap narrowed to $879.4m from $1.26b last month, a 30% decline
• Deficit represents 4.4% of general fund budget
• Projected revenue for fiscal 2021 revised higer by $326.6m
  • Withholding revenue up $130m
  • Estimated and final payments up $117m
  • Pass-through entity tax up $64.3m
  • Sales tax revised up $$39.6m
• “The current forecast remains conservative for the second half of the fiscal year given the significant uncertainty surrounding the course of the Covid pandemic and the...