Eroding state income tax receipts have largely undone Gov. Dannel P. Malloy and the legislature’s efforts to whittle down big budget deficits projected for each of the next three fiscal years, a new report showed late Friday.
A legislative panel not only recommended hefty tax increases to balance the next state budget, but also endorsed enough to run up more than $300 million in surpluses by 2017. The reason for doing that became apparent late Thursday when a new report downgraded how much revenue growth the state can count on in its new budget.
Connecticut’s economy has not eased the state’s budget crisis as Gov. Dannel P. Malloy predicted on the campaign trail last year. A new analysts’ report Thursday found tax receipts and other revenues still likely to grow as originally anticipated last summer – when major deficits were projected for the next two fiscal years.
Once a month The Mirror will answer five questions about a key element of the state budget process. Labeled “5 Things,” our aim is to de-mystify the arcane language and process that shroud the way the state government chooses to spend taxpayers’ money. Today’s story will take a look at so-called “consensus revenue estimates,” which the state uses to project how much money it expects to have coming into its treasury.