He didn't express surprise that Connecticut might need to dig out of an almost billion-dollar sinkhole, a projection released Thursday by the Office of Fiscal Analysis.
"I think it's refreshing that OFA has done this," said Malloy. "I've routinely said that this is a tough economy."
OFA's report shows the state is expected to be $339 million more in debt than previously thought, especially thanks to less than anticipated revenue in January.
Malloy, like state Democrats, blames stock market fluctuations but sees another issue.
"If you look at how we tax and how our income comes in, we are quite dependent on highest income earners," said the governor.
Republicans have said those high income earners are moving out of state because taxes are too high.
While a budget battle brews again, GOP leaders are questioning the news conference Malloy called on Friday about his so-called transportation lockbox. He plans to spend billions on roads and bridges, and is asking for bipartisan support to protect funds for infrastructure improvements.
"In my opinion, it's a bit of a distraction for the assembly," said State Rep. Vincent Candelora, Deputy Republican Leader. "In concept, it's fine. But I don't think that's where our priorities need to be this session. I think our priorities really need to be getting our fiscal house in order."
The governor defended the lockbox plan amid criticism that it involves spending in a time of deficit.
"The pattern of a lack of investment in transportation is the headwind that economy faces and if we're not going to be committed to solving this issue, then our tax base won't grow again," said Malloy.
He also pointed to cuts he proposed months ago.
"State government is going to be substantially smaller in the not too distant future," said Malloy.
That idea doesn't sit well with union leaders.
"You can't cut your way to prosperity," said Lori Pelletier, president of Connecticut's AFL-CIO.
She blames the bigger budget gap on the doom and gloom surrounding it.
"People are going to pay attention, right? And now at least there are a number of public employees and others who are saying, 'Wait a minute, we got to stop spending. We got to stop growing this economy because we are scared.' So, it's a product of what they decided to deliver," said Pelletier.