Low gas prices contributing to widening state budget gap
HARTFORD, Conn. (AP) — Gov. Dannel P. Malloy’s budget office predicts Connecticut’s main spending account will end this fiscal year $120.9 million in deficit.
In a letter sent Tuesday to Comptroller Kevin Lembo, the Office of Policy and Management said the General Fund deficit grew by $89.3 million since last month.
Part of the change stems from lower-than expected gas tax collections, caused by plummeting gas prices. That triggered money to be transferred from the General Fund to the Special Transportation Fund to cover transportation expenses.
OPM also projected overall state expenditures will be $22.8 million above the approximately $20 billion budget.
OPM Secretary Ben Barnes has said the state will balance its books by June 30. Meanwhile, Malloy is expected to make a second round of mid-year spending cuts to reduce the deficit.