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Connecticut Projects $530 Million Budget Deficit for Fiscal Year

April 20, 2020, 9:58 PM

Connecticut is projecting a $530 million budget deficit for the fiscal year ending June 30, due largely to the Covid-19 pandemic’s impact on the state’s economy, according to Office of Policy and Management Secretary Melissa McCaw.

  • Deficit will be closed through a transfer from the state’s Budget Reserve Fund
  • Reserve is estimated to decline to about $2.3b, or 11.4% of general fund appropriations, after closing the fiscal year deficit
  • Estimated revenue revised lower by $510.7m, including:
    • $281.3m sales tax
    • $120.7m personal income tax withholding
    • $71.9m corporation tax
  • Tax remittance delays aren’t expected to have a material impact on budget balance, McCaw said in letter to Comptroller Kevin Lembo

To contact the reporter on this story:
Martin Z. Braun in New York at mbraun6@bloomberg.net

To contact the editors responsible for this story:
Elizabeth Campbell at ecampbell14@bloomberg.net

Michael B. Marois

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