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Connecticut's Budget Deficit is Growing

Is the state heading toward its own fiscal cliff?

Connecticut's budget deficit is increasing, taking a perilous plunge on Friday that is pushing it toward the $300 million mark, the Connecticut Mirror reports.

While the website questions whether the deficit will force Gov. Dannel P. Malloy to increase taxes - again - to cover continued budget shortfalls, Malloy last week said he would not hike state taxes, according to the Republican-American newspaper. 

The growing state budget deficit, the Mirror reports, is the result of revenue shortfalls that are greater than Malloy administration officials originally anticipated. Officials in his administration blame the shortfalls on the overall weakness of the national economy. State Republican leaders, however, lay the blame on the weakening effect on the state's economy of the $1.5 million in new taxes the Malloy administration implemented in the last year.

Malloy will present his new budget plan to the General Assembly when it meets in early 2013.

Donna Pearlman November 13, 2012 at 04:18 PM
I think our state and our nation are not just facing a fiscal cliff we are hanging on by a bungee cord ...
Steve P November 14, 2012 at 01:35 AM
Think he'll raise taxes again? Raising tax rates and adding new taxes only increases revenue if folks cannot or won't get their products or services elsewhere. I wonder how much gas tax revenue would go up if CT lowered their taxes $0.20/gal so it's no longer worth driving 10 miles into MA or RI to fill up? I wonder how much more tax revenue would increase if people started buying things in stores in CT rather than online? We just spend too much
Thomas Cornick November 14, 2012 at 12:07 PM
291 million and another 150 million because you have to pay interest on borrowed money to bring a hundred or so jobs for scientists and another two hundred in support positions. There is your deficit in a nutshell the governor spending borrowed money. The question is how many jobs will be lost by existing employers paying higher taxes or receiving less services

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