.

Connecticut's Budget Deficit up Another $50 Million

Officials for Gov. Dannel P. Malloy disagree with the state comptroller's deficit figures, but acknowledge they must now file a deficit mitigation plan with the legislature.

State Comptroller Kevin P. Lembo says the state's mushrooming budget deficit has jumped by another $50 million, bringing the official deficit figure today to $415 million.

However, because of a technical accounting glitch, Lembo's office has not factored in to that figure Gov. Dannel P. Malloy's recently ordered budget cuts, the Connecticut Mirror reports.

When those cuts are calculated, the website reports, it brings the actual deficit closer to $290 million.

Malloy's office, meanwhile, is questioning Lembo's deficit figures. Malloy officials say they don't believe the deficit is as high as Lembo is estimating, but offered no reason for why they don't agree with the comptrollers calculations, the Mirror reports.

Lembo said the state's budget woes are, in part, the result of higher than expect spending on Medicaid. Malloy has said he will file a deficit mitigation plan with the legislature before year's end. He has blamed the state's fiscal problems on the enduring and lingering impacts in Connecticut of the nation's economic downturn.

Kaptainsteve December 09, 2012 at 06:39 PM
It's all the taxpayers fault. They are simply not paying enough. They are not paying their fair share, especially the richest among us. Please Governor, do not even think of shrinking the size or scope of state government. We can't have that. In fact, why not increase it a bit more. Provide more for those of us who need more. The Connecticut and National motto; From each according to his ability, to each according to his need. It's working great so far, it's worked great all around the world, it's working great in CT. Keep it up voters. Keep it up Malloy. I'm sure that this will have a great ending. What's wrong with concentrating all our money and power in Hartford? The central planners know better than the local communities. The localities would probably waste the money or not know what best to do with it anyway. Why not just let the state keep all our checks, and give back whatever it doesn't spend? Prosperity for all!
Bart Shuldman December 09, 2012 at 07:04 PM
No doubt Warren Buffet should pay more. But raising the taxes as proposed by Obama just not do that. In fact Buffett must be laughing all the way to the bank. It only raises taxes on those already paying high taxes. It will help crush the economy. As for Malloy he will see a huge backlash against him if he thinks about raising taxes. We went up a lot already. He even raised taxes on the middle class by about 40%. Malloy is stuck and now he needs to undo his promises and do what is right. Cut spending.
R Eleveld December 12, 2012 at 05:29 PM
Higher taxes at some point creates what I call the tipping point. We see it with tobacco taxes... raise the taxes and fewer people smoke, and revenues decline. Granted fewer smokers maybe good, and that is arguable in certain cases, yet it does yield less tobacco tax revenue. I know such logical rational thought. The same applies with ANYTHING! Some may still not understand this concept, but in Europe they drive smaller very efficient cars. Why? Because Gasoline is VERY expensive (~$8-$10/US Gal.Eq.). Higher taxes results in less use or generation of the item or activity to be taxed. Who would have thunk! Mr. Buffet we read rails on about how he should be made to pay more in income taxes, yet his phenomenal wealth (est. >$60 BILLION) upon his death goes to CHARITY and not the Government in estate or death taxes. Why?, Does government not need his wealth? Shouldn’t we share in his success? Am I the only one realizing he speaks out of two sides of his mouth? Do what I say, not what I actually do! Gov. Malloy has raised taxes and gets less revenue. That is compounded by the slow economy and he fails to understand it is not a taxing issue, granted it will be if he goes to the till yet again, it is a spending issue.
R Eleveld December 12, 2012 at 05:46 PM
Maybe some lessons from the industrial midwest are in order. Michigan and its Right to Work law comes to mind and the changes in Wisconsin's collective bargaining is another idea whose time has come. The unions nationally went to these states and fought hard. The Unions (a clear minority of citizens) lost and everyone else won based upon reports to date. The Governor can’t raise more taxes because he will collect LESS revenue. Think about it higher taxes less activity and less revenue, lower taxes will get us what? Basic Economics101. Look at the price of TV’s, lower the price and you get what? More TV’s. Amazing how that works.
Kaptainsteve December 13, 2012 at 12:09 AM
Sin taxes are just that, a sin. You should not punish those with fines, which essentially a sin tax really is, just because you represent a popular majority and they an unpopular minority. To tax to punish is really to fine someone. Sin taxes are de facto unconstitutional in that they are fining and prosecuting individuals for doing legal things (ex. buying cigarettes) in denial of due process. This is a violation of the Bill of Rights and the spirit of RULE OF LAW AND JUSTICE.

Boards

More »
Got a question? Something on your mind? Talk to your community, directly.
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.What's on your mind?What's on your mind?Make an announcement, speak your mind, or sell somethingPost something
See more »