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State Budget Deficit up Another $50 Million

Officials for Gov. Dannel P. Malloy disagree with the Connecticut comptroller's deficit figures, but acknowledge they must now file a deficit mitigation plan with the legislature.

State Comptroller Kevin P. Lembo says the state's mushrooming budget deficit has jumped by another $50 million, bringing the official deficit figure today to $415 million. 

However, because of a technical accounting glitch, Lembo's office has not factored in to that figure Gov. Dannel P. Malloy's recently ordered budget cuts, the Connecticut Mirror reports. 

When those cuts are calculated, the website reports, it brings the actual deficit closer to $290 million. 

Malloy's office, meanwhile, is questioning Lembo's deficit figures. Malloy officials say they don't believe the deficit is as high as Lembo is estimating, but offered no reason for why they don't agree with the comptrollers calculations, the Mirror reports.  

Lembo said the state's budget woes are, in part, the result of higher than expect spending on Medicaid. Malloy has said he will file a deficit mitigation plan with the legislature before year's end. He has blamed the state's fiscal problems on the enduring and lingering impacts in Connecticut of the nation's economic downturn.

In an effort to lower the deficit, Malloy last week announced $170 million in budget cuts, the maximum allowed by a governor without needing legislative approval. 

COSMO P December 04, 2012 at 05:11 PM
I am shocked at this. How could this happen to a well organized and informed bunch of democrats. Am i missing something here?
Sneed December 04, 2012 at 05:17 PM
Why didn't John Frey catch this mistake. He's on the Finance Committee. Isn't he supposed to be looking at the numbers to make sure they are right?
sebastian dangerfield December 04, 2012 at 09:03 PM
sneed I think he noticed the mistake voters made in electing malloy. What other mistake are you talking about?
sebastian dangerfield December 04, 2012 at 09:24 PM
Umm---check out the real reason. Sure, there was a revenue shortfall. But there was also Medicaid claims that were way above projections. when you start giving away free things, like college tuition to illegal immigrants, well, they feel more welcome here, and social spending goes up. He gave out grants to municipal education that were actaully just teacher raises (unionized teachers). But he also created a high speed railroad project for , get this---between new haven and springfield!! Now that is where we have a lot of demand!! (no that isnt most likely corrupt cronyism? New Haven to springfield? And he took back some (not all) of municipal workers raises!! wow--but then guranteed them no layoffs for 4 years. So -when we need to cut costs-we cant. So, the solution will be to cut services, which means he doesnt raise your taxes, your locality will. This is Democrat politics at its finest. Protecting unions--to the detriment of everyone else. Oh and he paid Bridgewater, the largest hedge fund in the world, 115 million dollars to relocated from westport to stamford (malloy's home town). 115 million to make stamford a winner and westport a loser. What a guy.... but yeah, lets make this a Frey issue.
COSMO P December 05, 2012 at 03:04 AM
@ Sneed. So the governor should listen to John Fry. That would be a neat trick.

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