Wednesday, January 30, 2013
Spending Cuts Reluctance Widens Hole in Next Budget
By Keith M. Phaneufwww.ctmirror.org
While legislators slashed spending last month to balance current finances, their reluctance to embrace those cuts long-term means the shortfall in the next state budget has grown yet again, according to a new report from nonpartisan analysts.
The legislature’s Office of Fiscal Analysis projects that spending will outstrip revenues by $1.2 billion in the fiscal year that begins July 1, based on current trends, and the fiscal hole in 2014-15 now exceeds $1.3 billion.
That’s up modestly from the shortfall projections of $1.14 billion for next year and $1 billion for 2014-15 that OFA released in mid-November.
The $1.2 billion gap, which is 6 percent of the current operating budget, also is roughly one-third the size of the historic, $3.7 billion annual shortfall that Malloy inherited upon taking office two years ago.
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