Skip to comments.Revenues shrinking, but Malloy still projects a surplus
Posted on 03/20/2012 3:11:29 PM PDT by matt04
Gov. Dannel P. Malloy's administration recognized shrinking tax revenues in its latest budget forecast Wednesday, yet remained the only entity still projecting that state government will wrap up the fiscal year in just over three months in the black.
In a report filed Wednesday with the comptroller's office, the governor's budget agency did note that the new $12.4 million surplus projection in the general fund falls $62.6 million short of the level needed to continue the ongoing conversion of state finances to Generally Accepted Accounting Principles.
"The performance of income tax collections during the April filing period ... will be the most significant factor affecting year-end results," Office of Policy and Management Secretary Benjamin Barnes wrote in his monthly report to Comptroller Kevin P. Lembo.
Barnes' office, which projected a $35.9 million surplus one month ago, downgraded its forecast by $23.5 million in the latest report, attributing the entire drop to shrinking revenues.
Though income tax collections are up by about $50 million, they are offset by a matching increase in refunds, Barnes wrote. Estate tax collections are down by $25 million.
One tax that has been performing better than anticipated is Connecticut's wholesale fuel tax. Buoyed by rising prices on the international market, the tax is on pace to collect $20 million more than anticipated.
Lembo, whose office certifies the official monthly budget assessment, reported his first deficit of the fiscal year Wednesday, projecting a $20.7 million shortfall in the general fund March 1. His next forecast is due in 11 days.
The legislature's nonpartisan Office of Fiscal Analysis first reported a $145 million general fund deficit Jan. 25 and a $161 million shortfall Feb. 24.
(Excerpt) Read more at ctmirror.org ...
Raise taxes. Problem solved.
Geez. Do I have to think of everything?
Isn’t that rare ... only governments don’t use the GAP, but they will roast you if you don’t and try to use the same accounting tricks that they use.
Revenues are shrinking in California, too, yet we’re supposed to believe the economy is recovering.
That's why all the smart criminals go into politics, or become bureaucrats.
Too bad Malloy can’t put hs hands on all that money he used to steal the election.