Comptroller Puts State Deficit At $170 Million And Growing

AP
April 02, 2020 - 9:07 am
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Aaron Kupec/WTIC file photo

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HARTFORD, Conn. (WTIC and AP) — Connecticut is on track to end the current fiscal year with a $170 million deficit, a figure that likely will grow over the coming weeks and months, the state's comptroller said Wednesday.

Kevin Lembo's report to Gov. Ned Lamont marked his first budget and economic outlook since the emergence of the COVID-19 pandemic in the state.

“The speed and scale of the pandemic’s economic disruptions are unprecedented for Connecticut,” Lembo said. “As a result, the full extent of the impact is not yet clear and may take weeks, if not months, to determine. The current year deficit could, and likely will, grow larger."

Lembo said his office already is seeing a drop-off in withholding receipts from the large number of layoffs and furloughs due to the closure of non-essential businesses. He said his office is reducing its sales tax estimate by $30 million due to the business closures and shelter-at-home directives.

The fiscal year ends June 30. He noted the state's $2.5 billion budget reserve account is expected to grow to approximately $2.65 million, which makes Connecticut “better positioned to meet the challenge” of the pandemic.