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Connecticut's Budget Deficit is Growing

Is the state heading toward its own fiscal cliff?

 

Connecticut's budget deficit is increasing, taking a perilous plunge on Friday that is pushing it toward the $300 million mark, the Connecticut Mirror reports.

While the website questions whether the deficit will force Gov. Dannel P. Malloy to increase taxes - again - to cover continued budget shortfalls, Malloy last week said he would not hike state taxes, according to the Republican-American newspaper. 

The growing state budget deficit, the Mirror reports, is the result of revenue shortfalls that are greater than Malloy administration officials originally anticipated. Officials in his administration blame the shortfalls on the overall weakness of the national economy. State Republican leaders, however, lay the blame on the weakening effect on the state's economy of the $1.5 million in new taxes the Malloy administration implemented in the last year.

Malloy will present his new budget plan to the General Assembly when it meets in early 2013.

 

Tom November 12, 2012 at 03:59 PM
Let's keep this in mind. If you continue to spend and promise free stuff to your voter base the more money you need to bring in via taxation. The higher you drive taxes the greater the incentive to leave the state. This is true for people as much as it is for corporations. This will happen more and more in the states favorite ATM- Fairfield County. You can't continue to beat on and tax the so called affluent and expect there to be no ramification. Jobs will leave, tax payers will leave and then all you have left is a bankrupt state who continues to vote themselves out of existence. Its a downward spiral that will pick up pace unless this insane entitlement spending is controlled. If you are confused take a look at Greece.
fact_checker November 12, 2012 at 04:50 PM
Ah, author, we meet again. I believe you mean to say $1.5 billion in new taxes, not $1.5 million.
Evil Squirrel November 13, 2012 at 05:40 PM
If only we could build a bridge from New Haven to Springfield.....then all of this would be moot.

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