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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.

Paul November 13, 2012 at 12:22 AM
Is this a surprise to anyone...Get ready for more taxes
LiveForFreedom November 13, 2012 at 01:00 AM
The state needs more revenue. Expect the Democrats in the state legislature to find ways of increasing revenues by increasing taxes again in 2013. The cash strapped towns will need to increase property taxes and motor vehicle taxes to add tax revenues lost from the state of Connecticut. New London County has 38,995 residents over 65 and they expect that number to double soon. DOL states that statewide, the unemployment rate is 7.8 percent. Indicators such as CPI and spending show a dismal outlook. High unemployment rate for older workers. People working multiple part time or full time jobs to make ends meet. Graduates unable to find a job in southeastern Connecticut. No large businesses or companies moving to Norwich New London county Bigger government in Connecticut is going to happen whether we like it or not. High wage earners will leave the state. Retirees will depart Connecticut to escape the high cost of living. Few people remember that Connecticut used to have 8 electoral votes, but we lost population in the 8 years after the State of Connecticut implemented the Income Tax. We now have 7 electoral votes due to decling popluation. More residents and taxpayers will depart; more businesses will shut down. Connecticut is following the path of California... we are just a few years behind them. Another state budget deficit for 2013 will force State Treasurer Kevin Lembo to tell Dan Malloy we need more revenue in the form of tax increases.
Robert Applegate November 13, 2012 at 02:43 PM
The state does not need more revenue. The state must operate within the constraints of the revenue it receives. The state government imposed $1.5 Billion (not million) in taxes last year. Attempting to increase that burden on those still working will not solve the "revenue" problem, quite the contrary. As noted, it will make job creation harder and lead to further departures of money and people from the state. As is unfortunately normal, the state is not conservative (that word) enough in its revenue projections when setting the budgets. It is now necessary to take action to bring current spending under current revenue receipts. Yes, furloughs, reduction in commission sizes, reductions in the Governor's staff /salaries are all in order. The state must be made attractive to businesses that actually produce products. A green economy, no matter how socially conscious, must still be an affordable economy. High (and higher) taxes on the few (and fewer) or the many does not accomplish that.
Don't B Obama November 13, 2012 at 04:22 PM
The reason the state's economy is weakening is due to already sky-high taxes. Cut spending and the size of the state government is the only acceptable fix. Malloy's previous "fix" of new even higher taxes didn't work or maybe he needs 4 more years too.

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