OPM forecasts $94 million deficit as state awaits budget

OPM forecasts $94 million deficit as state awaits budget

Record-Journal


With no budget in place, the state is on pace for a $93.9 million deficit for the current fiscal year, according to the Office of Policy and Management.

The figure could grow if the state remains without a spending plan.

The state has been operating under Malloy’s executive order since July 1 — he revised it Friday — because the legislature has yet to vote on a budget for the current biennium. The state is projected to face a combined $3.5 billion deficit over the current and upcoming fiscal years.

OPM Secretary Ben Barnes said in his monthly letter to Comptroller Kevin Lembo that Monday’s projection could be closed with a transfer of the $94.5 million remaining in the Municipal Revenue Sharing Account. That fix would require legislative approval.

Barnes also wrote in his letter that revenues remain on pace with the most recent projections, released in May. Certain legal requirements and obligations limit Malloy’s ability to cut spending via executive order, and he has also said that some smaller revenue streams expired when the legislature failed to take action before the end of last fiscal year.

The legislature did take action on a concession agreement with state employees that reduced the deficit from its original projection of $5.1 billion. Lawmakers approved the deal, which includes $1.57 billion in anticipated savings over the next two years, with party-line votes in each chamber.

Lembo will offer his first evaluation of the current fiscal year in a letter due Sept. 1.

msavino@record-journal.com 203-317-2266 Twitter: @reporter_savino


Support Quality Local Journalism

Latest Videos




X