Budget deficit nearing $1.5 billion

From the Courant's Christopher Keating:

With state tax revenues spiraling downward even faster than before, the state is now facing a projected budget deficit of nearly $922 million in the current fiscal year and as much as $8 billion over the following two fiscal years.

And if I'm following this fuzzy math correctly, that means the current year's deficit is around $1.5 billion... with about $600 million already addressed. And I think the rainy day fund was pegged at $1.4 billion last summer.

Between an increasing deficit and the refusal of Speaker Donovan and Senate President Williams to face reality, I'm guessing the whole rainy day fund gets eaten up before this year is out. Also worth mentioning... Governor Rell can only make budget reductions up to 5% (I think). And that means this budget shortfall needs to be addressed by the legislature.

Despite promises from the state... I'm still guessing that the state cuts town funding before the year is out. The budget numbers just don't work.

Tim White

Btw, anyone else get the same feeling I do... a year ago, $1.5 billion would have been big. And now... well... now money grows on trees, so it's no big deal? Oh wait... I'm Tim White, not Tim Geithner. I happen to be stuck here in the real world where $1 million is still a lot of money.