It’s official. State government finished the last fiscal year in deficit, despite assurances from Gov. Dannel P. Malloy that this would not happen. Comptroller Kevin P. Lembo officially closed the books Wednesday on the 2014-15 fiscal year – which ended June 30 – determining it finished $113.2 million in the red.
The panel studying Connecticut’s tax system got some sobering news Wednesday morning in separate reports detailing the state’s struggle to recover from the last recession and the challenge of closing the wealth gap between the cities and wealthy suburbs.
Gov. Dannel P. Malloy’s hopes of avoiding a post-election deficit continue to dwindle with $116 million in red ink remaining in a fiscal year that ends in one week.
The prospect of tapping Connecticut’s emergency budget reserve for the first time in Gov. Dannel P. Malloy’s tenure loomed larger Wednesday. Facing deficit forecasts ranging up to $191 million for the current fiscal year, the administration mustered emergency cuts of less than $14 million to offset that problem.
The state’s budget rollercoaster ride through the current fiscal year took another dip Friday as Gov. Dannel P. Malloy’s administration reported a $133 million deficit, more than doubling the red ink from one month ago.
Still struggling to pay its debt from the last recession, Connecticut might have avoided that emergency borrowing – and have double its current reserves – had it followed a new savings strategy unveiled Tuesday by Comptroller Kevin P. Lembo.
Comptroller Kevin P. Lembo intends to change state government’s saving habits with a new reserve system that takes into account Connecticut’s lucrative-yet-volatile relationship with Wall Street.
The candidates vying to become Connecticut’s chief fiscal guardian agree more must be done to improve state government’s transparency and fiscal security. But while incumbent Kevin Lembo says the state has made considerable progress on both fronts over the past four years, his Republican challenger, Sharon McLaughlin, insists too much work remains to be done to feel good about the status quo.
Connecticut was far from the only state whose fiscal reserves weren’t enough to withstand The Great Recession, according to a new report from the Pew Charitable Trusts. The new study recommends several steps to help states better prepare for economic downturns – including proposals Connecticut’s legislature has resisted in the past.
State government wrapped up the fiscal year with a $121.3 million surplus, according to unofficial numbers released Tuesday by Gov. Dannel P. Malloy’s administration. But one of the governor’s chief rivals insists the surplus wouldn’t exist had Malloy not used borrowing to defer hundreds of millions of dollars in operating costs until after the election.
While procrastinators hope for big refunds and scramble to beat Tuesday’s tax-filing deadline, the person with the most riding on those returns is Gov. Dannel P. Malloy.
With his campaign announcement out of the way, the governor faces a big election-year test this week when a legislative panel decides whether to back his controversial tax rebate plan.
Gov. Dannel P. Malloy’s budget chief left the door open Thursday for the administration to support a House Republican initiative to provide $60 million in tax relief to small businesses.
Election-year politics. A large future deficit. A sticky constitutional cap. Budget obstacles are everywhere as legislators return Wednesday to the Capitol for the 2014 General Assembly session.