By Keith M. Phaneuf – CT Mirror
Since Gov. Dannel P. Malloy’s administration announced state income tax receipts were lagging due to weak stock market earnings, much of the Capitol’s focus has been on the relatively small hole it opened in the current budget.
But the projected loss of $100 million in tax receipts this year also exacerbates a much bigger budget problem just down the road.
Malloy and lawmakers just raised $1.3 billion in taxes – and canceled or delayed nearly $500 million in previously approved tax cuts – to balance this fiscal year and next
And the latest revenue trend means more deficit projections approaching – or topping – $1 billion, must be resolved shortly after the 2016 state elections.
“Everybody’s belief that we would return to a normal business cycle has faded,” Office of Policy and Management Secretary Benjamin Barnes, Malloy’s budget chief, told Capitol reporters during a recent briefing on the income tax receipts.
During Malloy’s first two years in office, 2011 and 2012, Barnes said he and many others believed that Connecticut’s recovery from the Great Recession – though sluggish at first – eventually would accelerate and match the economic growth of the 1990s and 2000s…for more click here