Monday, July 14, 2008

WRA on growing budget deficit

Recently, there were reports that the 2008-09 state budget had a projected $150million deficit. And now the WRA opines further:

However, budget director Robert Genuario now says the 6 percent increase in income-tax receipts that Gov. Rell and the Democrats were counting on isn't going to materialize. That's a $400 million loss. Corporation-tax revenues also are off sharply, too, which adds at least $50 million to the deficit. Other taxes also are underperforming, and its difficult to imagine the sales tax will produce anything close to the extra $150 million Gov. Rell and the Democrats expected. Even after subtracting her $125 million in rescissions, the deficit easily will exceed a half-billion dollars.

And considering he's a member of the Rell-Democrat cabal, Mr. Genuario probably was being optimistic when he told a legislative committee last week: "The deficit could become significantly worse."

Spending, meanwhile, goes on as if the economy was firing on all cylinders.

Don't worry though. While I won't be surprised to see the state cut local education funding immediately after this fall's election, I'm sure Jim Amann's slush discretionary fund will remain intact. And the Council majority will rejoice!

Tim White


Breachway said...

at least all the laid off workers will be able to walk around the track at the high school and admire the turf.

Anonymous said...

Yes, but they better not walk on it! I'm sure that those needle sharp cleats on the track shoes that our track athletes wear won't be allowed on the turf.

Anonymous said...

CT is like a family that takes an expensive vacation to the Bahamas and puts it on plastic right when the primary breadwinner is about to be laid off