There was no good news for the state from its latest revenue numbers. The Malloy administration’s previous estimates for tax receipts proved optimistic, and an April reality check saw the budget office now projecting a deficit of almost $162 million.
Receipts from top income earners often bump in April because of capital gains tax, but that hike only reflected a 14 percent increase from last year, instead of the 25 percent the state was hoping for.
Malloy’s budget chief, Ben Barnes, now says he will take what he described as "appropriate action" to achieve additional cost savings, before the fiscal year ends at the end of June.
Comptroller Kevin Lembo will come up with his own estimates later today. He told WNPR's Where We Live, "we are running out of time in the fiscal year, so even if they went in and did significant cuts into agencies, the likelihood that they would be able to realize the savings in time is questionable at this point."
He says that may mean the legislature has to get involved, if the deficit is deemed to be more than one percent of the budget.
Meanwhile, Malloy himself said he's unimpressed with the legislature's recent efforts to produce a workable budget for the upcoming biennium. Both Republicans and Democratic dominated committees have put forward proposals this week.
I mean ultimately everybody needed to, I guess, beat their chests, put out their ideas, make their political points. At some point we've got to get serious about getting a budget. And neither of these budgets are the budgets that we'll end up with."
The Finance, Revenue and Bonding committee's proposals included $1.8 billion in tax increases over the next two years.